QUESTION 1 (CLO 1) (a) Conceptual framework is a constitution, a coherent system of interrelated objectives and fundamentals that can lead to consistent standards and that prescribes the nature, function and limits of financial accounting and financial statements. Required: (1) Explain the FIVE (5) clements of financial statement. (10 marks) Discuss the FIVE (5) benefits of having a conceptual framework for accounting (10 marks) (b) BAC trading recorded the following data of purchases and sales for 2021. 2021 Purchases Sales Month Quantity Price per unit Quantity Price per unit No. (RM) No. (RM) January 2,500 2.00 February 1,000 3.50 March 800 3.50 April 600 2.50 May 800 4.00 June 900 2.60 July 1,300 4.00 August 500 2.70 September 500 4.20 October 700 2.80 November 400 4.20 Required: (i) Explain the methods of inventory valuation. (6 marks) Compute the closing inventory as at 30 November 2021 by using FIFO (first in, first out) method. (10 marks) (iii) IFRS prohibits LIFO method. Discuss (4 marks) (Total: 40 marks)