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Question Three (3) a) Referring to the Conceptual framework, explain the following: i

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Question Three (3) a) Referring to the Conceptual framework, explain the following: i. Predictive value as it relates to "relevance"" as the fundamental characteristic of financial information. (3 marks) ii. Objective of financial statements. (2 mark) iii. Basic Recognition criteria for statements of financial position items (3 marks) b) Define 'equity', and explain why the conceptual framework does not prescribe any recognition criteria for equity. (6 marks) c) On 1 October 2020, Dadaboat Co sold one of its products for GH¢7.5 million. As part of the sale agreement, Dadaboat Co is committed to the ongoing servicing of the product until 30 September 2023 (i.e. three years after the sale). The sale value of this service has been included in the selling price of GH¢7.5 million. The estimated cost to Dadaboat Co of the servicing is GH¢450,000 per annum Dadaboat Co's gross profit margin on this type of servicing is 25%. Ignore discounting. What is the amount of deferred income and revenue which Dadaboat Co should recognise in its statement of profit or loss and other comprehensive income and the statement of financial position as at or for the year ended 30 September 2021 relating to the contract for the supply and servicing of products? (8marks)