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b) On 1 April 2019, K plus Berhad, a newly incorporated company, was granted a concession by the Malaysian Government. Under this concession, K plus Berhad would design, build and operate a tolled motorway for 30 years, after which it will hand over the motorway to the government for RM1. K plus Berhad secured financing of RM200 million for the project on 4 June 2019, at which time it appointed professional consultants for the design and survey component of the project. The design work commenced on 1 July 2019 and construction began on 2 January 2020. Required: For each of the four dates referred to in the scenario, state (with reasons), whether that is (/ is not) the date on which K plus Berhad recognises the revenue income Date Revenue Recognition Reason (Yes/No) 1 April 2019 4 June 2019 1 July 2019 2 January 2020 (10 marks) (Total: 25 marks) End of Page b) On 1 April 2019, K plus Berhad, a newly incorporated company, was granted a concession by the Malaysian Government. Under this concession, K plus Berhad would design, build and operate a tolled motorway for 30 years, after which it will hand over the motorway to the government for RM1. K plus Berhad secured financing of RM200 million for the project on 4 June 2019, at which time it appointed professional consultants for the design and survey component of the project. The design work commenced on 1 July 2019 and construction began on 2 January 2020. Required: For each of the four dates referred to in the scenario, state (with reasons), whether that is (/ is not) the date on which K plus Berhad recognises the revenue income Date Revenue Recognition Reason (Yes/No) 1 April 2019 4 June 2019 1 July 2019 2 January 2020 (10 marks) (Total: 25 marks) End of Page

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