Reference no: EM132927818

Smiggy Bhd prepares interim half yearly reports . Its financial year - end is 31 may 2021.

i. The company depreciates its motor vehicle at 15 % using straight - line method , On 1 June 2020 , the cost of motor vehicle is RM500,000 . No additional motor vehicle was bought during the year .

ii. On 1 January 2021 , the company had donated to Rumah Titian Kasih amounting RM50,000 .

iii. The company was sued by its customer amounting RM50,000 due to pain and agony after consuming its product on 1 September 2020 . The company had recognised RM30,000 as contingent liability . On 1 March 2021 , judgement by the court was in favour to the customer and awarded him damages of RM45,000 .

iv. The cost of inventories was RM90,000 and the net realisable value was RM85,000 . On 31 December 2020 , the realisable value had increase to RM100,000 .

V. Smiggy Bhd , sold 5,000 units ( RM150 each ) of its product for the year . 40 % was sold in the first half and 60 % in second half of the year .

Problem 1: You are required to discuss how the above items will be treated in the interim report for the year ended 30 November 2020 and 31 May 2021. ( Answer should include in which statement should it be recognised )