KOK Bhd an electrical goods manufacturer, entered into the following transactions during the year 2016. 

Required:

Show how the following situation should have been recorded by KOK Bhd under Malaysian accounting regulations that year, and comment whether there are any differences in that reporting from what would be recorded by the company. _
i. Philap Lamp filed a lawsuit against KOK Bhd for RM1 000 000 for patent infringement in April 2016. The companies expected that it would take approximately 18 months before the lawsuit was settled. KOK Bhd recorded this as a liability.
ii. An employee suffered eye damage when a piece of glass exploded as she worked on the production line. She sued KOK Bhd for damages and was awarded RM40 000. KOK Bhd planned to appeal. KOK Bhd showed this under notes to the account. 

Answer rating: 100% (QA)

Answer I Here it is given that the Philip Lamp filed a lawsuit against KOK bhd for RM 1000 000 for the patent infringement in April 2016 The company e... View the full answer