The accountant of Green Life Berhad is preparing the interim report of the company for the period ended 30 September 2017. The financial year-end is 31 March annually. Upon finalizing the financial statement, he needs recommendations from you, as the consultant, on the following financial information:

a) The cost of inventories was RM3,400,000 as of 30 September 2017. After the assessment of market information, the net realizable value on 30 September 2017 was RM2,800,000. The inventories had a realizable value of RM3,600,000 on 31 March 2018.

b) The associate of Green Life Berhad was expected to declare dividends on 1 July 2017. However, due to the unresolved issues in July 2017, the subsidiary declared it on 1 December 2017.

c) Green Berhad organizes family day events annually, as part of the staff retention strategy. Green Berhad planned to organize the event in August 2017. However, the event was organized in February 2018 amounting to RM100,000.

Required: In compliance with MFRS 134: Interim Financial Reporting, analyze the financial information recommending to the accountant on the recognition, measurement, and the impact on the interim profit as of 30 September 2017.

Answer rating: 100% (QA)

A ANS WER 1 For the cost of invent ories the accountant should recognise the decrease in value from ... View the full answer