The conceptual framework for financial reporting identifies faithful representation as a fundamental qualitative characteristic of useful financial information. Required: Distinguish between the fundamental and enhancing qualitative characteristics of financial information and explain why faithful representation is important in financial reporting. (8 marks (b) On 1 February 2018, Advanced Home Sdn Bhd, signed a leasing agreement with a customer of machinery for 5 years. The cost of the asset is RM100,000 and interest is to be charged at 6.5% per annum. You are the external consultant of the company and the accountant needs your advice on the accounting treatment under MFRS 16, Leases. Required: Advise your client on the measurement method of the asset held under finance lease and the monthly payments from operating leases. (6 marks) (c) Charity Berhad is a company which specializes in developing materials and food production activities for economic benefits. The director of Charity Berhad is not sure of the recognition criteria and the accounting treatments regarding the following independent costs incuired: (i) (11) The company entered into a contract to acquire the franchise for Healthy Yogurt Ice Cream. Charity Berhad has to pay RM3 million for the franchise and recipe. It can manufacture and sell the yoghurt ice cream for five years. The company incuired a cost of RM220,000 for a project involving the investigation of new adhesive recently developed in the aerospace industiy. If this proves effective, then Charity Berhad may well generate significant income because it will be used in place of existing adhesives. Charity Berhad rented the premises, and the equipment and furniture were bought from the franchiser for RM2.5 million. The company also incurred RM400,000 in advertising and recruiting staff. (iii) Required: As the company's financial accountant, determine whether MFRS116 Property, Plant & Equipment or MFRS138 Intangible Asset are applicable for each of the incurred costs above and explain the accounting treatments accordingly. (11 marks)