2Question 1 (10 marks)The board of directors of HAPPY Limited is meeting to discuss the results over thepast years before releasing financial statements to the public.The discussion includesthis exchange of conversation:Vincent, the CEO of the company, saying: “This has not been a good year!Revenueis down and expenses are way up.If we are not careful, we’ll report a lossfor thethird year in a row.I can temporarily transfer some land that I own into thecompany’s name, and that will brighten our statement of financial position.Bruce,can you change the method of depreciation from double-declining-balance to straight-line.Also, all expenses should be paid as late as possible and record expenses whencash is paid.Then we can probably get a better profit figure.”