This is a mock case that was given by my lecturer as an exercise in order to enhance our ability in answering final exam questions. Below is the beginning statement for the question:

Serenity Beauty $($SB$),$a partnership company, commenced its operations as a skincare company in Penang on $1$January $2021.$SB produces various ranges of skincare products and sells them through company websites and agents. The business has thrived very well. In $1$January $2023$owners have changed the status of the company to public listed companies to get more capital to expand the business. It is an obligation for public companies to prepare financial reports prepared according to generally accepted accounting standards. As the business expands, business transactions become more complex, many substantial changes have been made and proposed as well as many issues have been raised, such as the recognition and measurement of financial items in financial statement preparation. For that, SB has appointed an experience$-$chartered accountant, En$.$Latifi to lead the accounting department that consists of a few staff who previously were held responsible for handling company$$s account. They have little experience in preparing financial statements in accordance with conceptual framework and MFRS standards as required by MASB.

To make his staff familiar with the need for a conceptual framework and related MFRS standards, En$.$Latifi arranged a weekly meeting with them to explain the importance of the framework and standards. This meeting officially started on $1$January $2023,$in conjunction with the first day of annual accounting term for SB$.$By organizing this meeting, En$.$Latifi believed his staff will be able to prepare company$$s financial statements properly at the end of the year $2023.$In the first meeting, En$.$Khairul$,$one of the senior staff from accounting department asked questions regarding the theoretical framework. In the first meeting as well, En$.$Latifi discussed with his staff various aspects of the Conceptual Framework. En$.$Latifi asserted that the Conceptual Framework examines the characteristics of accounting information that make it useful for decision$-$making. He also pointed out that there is main constraint inherent in the measurement, and reporting process may necessitate trade$-$offs or sacrifices among the characteristics of useful information. The meeting sessions so far seem fruitful. Staff were satisfied with the explanations given by En$.$Latifi$.$

In February $2023,$SB acquired a business in publishing industry$-$Siar Sdn Bhd$.$The accountant in that subsidiary company presented a report on the examination of the financial statement to the board of directors of SB$.$In the meeting, one of the new directors expressed surprise that the income statement assumes that an equal proportion of the revenue is earned with the publication of every issue of the company$$s magazine. She felt that the revenue should be recognised when the customers make the payments. Customers are required to make full payment for the year in January. The magazines are delivered to the customers at the end of each month. She said that she did not understand why the revenue cannot be recognised at the payment date. In the latest weekly meeting, Cik Alina expressed her concerns. Her first concern is on the stolen money from company$$s night safe amount RM$2,500.$Cik Alina, as the staff responsible for handling the cash safe, atoned to the negligence by reimbursing her own money to replace the amount loss. She would like to know the right way to account this event. Her second concern is about the purchase of new machinery made by SB on $1$January $2023.$The price of the machine is RM$250,000,$meanwhile its routine maintenance cost is RM$20,000$a year. So far, she has not made any records regarding the purchase and expense involving the machine because she did not know whether should she capitalized or expensed the related amounts.

REQUIRED:

$(1)$Help En$.$Latifi to explain the purpose of a conceptual framework.

$(2)$Identify the main constraint that limits the company to provide information with the qualitative characteristic that makes it useful.

$[$Please provide the answers to both question $(1)$ & $(2).$ These questions are more theoretical hence I did not provide any Trial Balance details. Please answer those questions to your best ability. Thanks in advance.$]$