Reference no: EM132698080

Problem 1: Which of the following statements in relation to an asset classified as held for sale is/are true?

1. An asset that meets the criteria for classification as held for sale after the end of the reporting period but before the authorization of the financial statements shall be measured at the lower of carrying amount and fair value less cost of disposal.
2. To be classified as an asset held for sale, the sale must be expected to be completed within twelve months from the end of the financial year.

Group of answer choices

Option 1: Both statements are false.

Option 2: Only Statement 1 is true.

Option 3: Only statement 2 is true.

Option 4: Both statements are true.

Problem 2: An entity shall measure a noncurrent asset or disposal group classified as held for sale at

Group of answer choices

Option 1: Lower of carrying amount and fair value less cost of disposal.

Option 2: Fair value less cost of disposal

Option 3: Carrying amount

Option 4: Higher of carrying amount and fair value less cost of disposal.