Question 2 (12 marks) Using MASB Conceptual Framework 2018's fundamental qualitative characteristics [ie relevance (ie predictive value, confirmatory value or both), materiality, faithful representation (ie complete, neutral and free from errors)], identify and explain the qualitative characteristics that need to be applied when companies make decision for the reporting of following transactions and/or events. i) The total amount of Galo Berhad's administrative expenses is RM2.5 million. The expenses comprised of list of 1,000 items. Included in the expenses amount is RM0.75 million of directors' remuneration. The rest of the expenses are related to employees' (other than directors) salaries, depreciation expenses, utilities expenses and miscellaneous expenses. Galo Berhad reported RM6 million revenues. 3 (4 marks) ii) For financial year ended 31 December 2021, Alie Berhad generated RM12 million gross profits, RM6 million profit before taxation and RM2.2 million profit after taxation. While for financial year ended 31 December 2022, Alie Berhad made RM7 million gross profits (because the sales revenues have reduced from RM20 million in year 2021 to RM16 million in year 2022, and cost of goods sold has increased from RM8 million in year 2021 to RM9 million in year 2022), RM 3 million profit before taxation and RM1.9 million profit after taxation. (4 marks)