B. As a junior accountant, Sofiya is trying to improve her skills in dealing with issues related to MFRS 137 Provisions,

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B As A Junior Accountant Sofiya Is Trying To Improve Her Skills In Dealing With Issues Related To Mfrs 137 Provisions 1 (237.86 KiB) Viewed 14 times

B. As a junior accountant, Sofiya is trying to improve her skills in dealing with issues related to MFRS 137 Provisions, Contingent Liabilities and Contingent Assets. She needs to do so as to ensure that her reports on the financial statement are viewed as true and fair to the users. The followings are events taken from several companies. Thus, they are independent from each other. i. Fargo Bhd has caused a severe damage to the habitat of wildlife in a country where there is no legal protection for the wildlife. As a result, the company received an order to pay the damage cost of RM200,000. The company has been donating to the wildlife foundation in a way to show that it supports the sustaining of this wildlife. Bina Jaya Bhd is a construction company. During the year, some of its workers got injured due to a collapsed wall. The management decided to pay compensation to all the workers involved and they had been informed about it. Discussions for compensation have been made but the amount to be paid has not been released. Al-Shifa' Bhd has hired a sales reviewer to hike its sales. They are bind with an employment agreement and are bounded for 3 years. After a year, the sales reviewer did not want to proceed with Al-Shifa' Bhd. Thus, Al-Shifa sued the reviewer and asked for a compensation of RM500 for every undone review. From the contract, there are 200 undone reviews from the reviewer. During the year, the court has ordered the reviewer to pay Al-Shifa' Bhd an amount as requested by Al-Shifa' Bhd. Prepare the relevant journal entries for the above transactions, if any. (4 marks) b.