QUESTION $2[10$ Marks$]$ a$.$ In March $2018,$ the International Accounting Standards Board $($IASB$)$ completed its updates to the Conceptual Framework for Financial Reporting. Within the updated framework, the qualitative attributes of relevance and faithful representation are retained without alterations. However, the IASB introduced modifications to the definitions of an asset and a liability.

REQUIRED:

Based on the revised Conceptual Framework for Financial Reporting, define the following terms:

$($i$)$ Relevance $(1)$

$($ii$)$ Faithful representation $(1)$

$($iii$)$ Asset $(1)$

$($iv$)$ Liability $(1)$

b$.$ Bandile Enterprise, a distinguished furniture production company located in the Durban Metropolis, has its fiscal year$-$end on September $30,2020.$ The board of directors seeks guidance on the following situations:

$($i$)$ A customer placed an order for $$Furniture Xerox$$ that amounted to R$20000$ on $10$ September $2020.$ The product was delivered to the customer on $2$ October $2020$ and the transaction was recognised in the current accounting period. $(2)$

Dr Accounts receivable

R$20000$

Cr Sales revenue

R$20000$

$($ii$)$ The company sold a piece of land in March $2020$ to Sihle Mkhize at R$1\mathrm{.}2$ million. The land was initially bought at R$900000.$ The director requested the company to recognise any gain or loss from the sale of the land to his personal account and the following journal entry was prepared. $(2)$

Dr Bank

$1200000$

Cr Amount owed to director

Land

$300000$

$900000$

$($iii$)$ An annual insurance of R$120000$ was paid by the company on $1$ September $2020.$ As at the financial year end, the accountant prepared only the following journal entry. $(2)$

Dr Prepaid insurance

R$120000$

Cr Cash

R$120000$

REQUIRED:

Explain if the above scenarios violate the qualitative characteristics, assumptions or

principles under the Conceptual Framework. Your answer should be supported with $($any$)$ correct journal entry as at $30$ September $2020.$