Reference no: EM132765941

Problem 1: An entity operates a chemical plant and has a published policy of making good any damage caused to the environment. Which of the following would give rise to a provision?

a) It is likely that a chemical spill which would result to pay penalty will occur next year.

b) Research suggests that there is a possibility that the entity's action may cause damage to surrounding wildlife.

c) The government has a plan for a law requiring all environmental damage to be rectified.

d) A chemical spill from a chemical plant has caused harm to the surrounding wildlife.

Problem 2: Agricultural produce as it grows on bearer plant is measured at the end of each reporting period prior to harvest at

a) Fair value

b) Fair value less cost of disposal

c) Fair value plus cost of disposal

d) Fair value less cost of disposal at the point of harvest