Good Gloves Sdn Bhd is a glove manufacturing company. In a review of its provisions for the year ended 31 March 2020, Good Gloves's assistant accountant has suggested the following accounting treatments:

(i) Making a provision for a constructive obligation of RM400,000; this being the sales value of goods expected to be returned by retail customers after the year end under the company's advertised 30-day returns policy?

(ii) Based on past experience, a RM200,000 provision for unforeseen liabilities arising after the year end?

Required:
Explain which of the above suggestions is permitted by Malaysia Financial Reporting Standards?

Answer rating: 100% (QA)

Step 12 ANSWER According to collect from the data Let us assume the given data as followed Explanati... View the full answer