Reference no: EM132966157

Problem 1: Some gains and losses arising on a revaluation of property plant and equipment are to be included in other comprehensive income. When the asset is measured in a foreign currency, how would exchange differences be treated?

1. As a reduction or increase in the carry cost of the asset.
2. As a contra account to be fully disclosed and to show the impact of foreign exchange differences.
3. As an item to be included in income or loss for the year.
4. The differences should be included in the calculation of other comprehensive income.

Problem 2: How would the not-for-profit organization report each controlled profit-oriented enterprise?

1. It is not required to report its interest in profit-oriented subsidiaries.
2. By disclosure in the notes to the financial statements of the not-for-profit organization.
3. By consolidating the controlled enterprise into its own financial statements or by using the equity method and disclosing additional financial information.
4. By using the cost method together with appropriate note disclosure.