Reference no: EM132765983

Problem 1: PAS 28 applies to which of the following?

a) investments in associates held by a venture capital organization or mutual fund measured at fair value through profit or loss

b) a 20% investment in preference shares

c) an interest in a partnership which gives the investor significant influence over the partnership

d) a 60% investment in ordinary shares of another entity

Problem 2: A liability shall be recognized

a) if the entity incurs a present obligation that is both probable and reliably measurable; provided, the other party to which the obligation is owed is specifically identified

b) if the entity incurs a future obligation that is both probable and reliably measurable

c) if the entity incurs a present obligation with improbable outflow of resources embodying economic benefits

d) if the entity incurs a present obligation that is both probable and reliably measurable, even if the other party to which the obligation is owed is not specifically identified