Which transactions results to the recognition of an asset

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Problem 1: Which of the following transactions results to the recognition of an asset?

a. An entity forecasts of purchase of inventory in the coming month. The purchase is highly probable

b. An entity enters into firm commitment to purchase inventory in the coming month. The entity cannot cancel the commitment without paying a penalty. The contract is not onerous

c. during the period, one of the buildings entity was destroyed by a calamity

d. an entity receives a non monetary grant from the government

Problem 2: According to PAS 27 Emma investments in subsidiaries, associate's or joint ventures are accounted for in the separate financial statements

a. at cost

b. at fair value in accordance with PFRS 9

c. using the equity method under PAS 28

d. any of these as a matter of accounting policy choice

Reference no: EM132817111

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