Reference no: EM132765921

Problem 1: An entity has a factory that has been shut down for a year due to various reasons including worker unrest and strike. The entity plans to sell this factory. How should the entity treat the factory?

a) As an investment property

b) As property held for sale

c) As property, plant and equipment

d) As loss equal to the carrying amount of the factory with disclosure in the notes to financial statements

Problem 2: Under PAS 34, which of the following statements is true?

a) The discrete view is required for interim financial statements.

b) Interim reports are required on a quarterly basis.

c) Interim reports are not required.

d) Interim reports require the preparation of only a statement of earnings and a statement of financial position.