Reference no: EM133166981

Question 1 - Talent Berhad is a network service provider registered in Malaysia. The company has been operating in the country for the past 12 years. On November 1,2019, the company entered a service contract with its customers to provide a special model handset and one-year service for RM250.000.If the customers acquired the handset only, it would be sold for RM75,000 and if the network service is separately provided for a one-year duration, the customer will be made to pay the sum of RM200.000 for the one-vear duration. The financial vear-end of Talent Berhad is November 30.

Required - Calculate the revenue from this contract for the accounting years ended 2019 and 2020 in accordance with the provisions of MFRS 15.

Question 2 - On 1 February 2019, Ann Ta Sdn Bhd signed a leasing agreement with a supplier of machiney 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 in accordance with the requirements of MFRS 16, Leases.

Required - Apply MFRS 16 to advise your client on the measurement method ofthe cost of the 'right-of-use asset"and the"lease liability"on 1 February 2019.