1. The following events occur between the end of the reporting period and the date when the nancial statements are authorized for issue: (1) Abnormally large changes in as set prices or foreign exchange rates. (2) Declaration of dividends. (3) Sale of inventories at an amount lower than the carrying amount. (4) A major business combination. According to IAS 10 Events After the Reporting Period, identify which of the above events would NOT give rise to an adjustment to a company's nancial statements. A. (l)and (4) only. B. (2) and (3) only. c. (2) and (4) only. D. (1), (2) and (4) only. According to IFRS 5 Non-CurrentAssets Heidfor Sale and Discontinued Operations, identify which of the following statements are not true about the measurement of a non- current asset held for sale. (1) An entity shall recognize an impairment loss for any initial or subsequent write-down of the asset to its value in use. (2) An entity shall not depreciate (or amortize) the asset while it is classied as held for sale. (3) An entity shall recognize a revaluation gain or loss at the time when the asset is classied as held for sale. (4) The asset is included in the statement of nancial position as a non-current item if the sale is delayed for more than one year. A. (3) only. B. (2) and (3) only. C. (3) and (4) only. D. (1), (3) and (4) only. 3. According to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors, determine which of the following statements is incorrect. A. Switching the inventory valuation method from rst-in-rst-out to weighted-average is a change of accounting policy, and such a change must be applied retrospectively. B. Switching the depreciation method of a property from straight-line method to diminishing balance method is a change of accounting policy, and such a change must be applied retrospectively. C. Switching the valuation basis of a property from cost model to revaluation model is a change of accounting policy, and such a change must be applied retrospectively. D. Revising the remaining useful life of a machinery is a change of accounting estimates, and such a change must be applied prospectively. 4. On 1 January 2020, Explorer Limited (\"EXL\") commenced drilling for oil from an undersea oileld. EXL is required to dismantle the drilling equipment at the end of its 5-year license. This has an estimated cost of $10 million on 31 December 2024. EXL's cost of capital is 8% per annum and $1 present value of 68 cents in ve years' time. According to IAS 37 Provisions, Contingent Liabilities and Contingent Assets, what is the dismantling provision as at 31 December 2021? A. $6,800,000 B. $7,344,000. C. $7,931,520. D. $8,000,000. 5. Felix Limited (\"FEL\") offers a 12-month warranty, whereby F EL would repair any defects free to the customers within the rst 12 months of purchase. Based on past experience, FEL estimates that 5% of 2020 sales would be returned for repair. F EL made sales of $600,000 in 2020 and incurred $18,000 on materials and labor costs for repair in relation to these sales. For the year ended 31 December 2021, F EL incurred another $6,000 in respect of 2020 sales. According to IAS 37 Provisions, Contingent Liabilities and Contingent Assets, identify which of the following entry is correct for the year ended 31 December 2021, with regard to the warranty for 2020 sales. (1) A net debit in Warranty Expense of $6,000. (2) A net credit in Warranty Expense of $6,000. (3) A net debit in Provision for Warranties of $6,000. (4) A net debit in Provision for Warranties of $12,000