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On 30 September 2019, AP Bhd has launched an opening of new factory by inviting the Minister of Health as it becoming the third bumiputera factory and company in pharmaceutical in country. This grand ceremony involved cost of RM30,000. On 10 November 2019, AP Bhd entered into contract to acquire the franchise of multivitamin products. AP Bhd paid an amount of RM1,250,000 to the franchisor to produce and sell the product using the formula given by franchisor.
REQUIRED:
Problem 1: Prepare the journal entry to record the acquisition of franchise in accordance to MFRS 138 Intangible Assets.
Summarizes the factors that influence the reliability of confirmations as evidence about the existence and occurrence of receivables and sales.
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