4. The following information is presented to you about the investments made by Parrys Group in various companies

1. An investment was bought for a value of RO 700,000. It was classified as held for trading on 30^th November 2016. The fair value of the investment on this date was estimated at RO 600,000. The asset was sold for RO 655,000 on 20th December 2016. The year end of the entity is 31 December 2016.

1. How would you show the investment along with its resulting sale in the financial statement? (2 marks)
2. Show how the answer will be different if the value of the asset at 30^th November 2016 was RO 800,000? (2 marks)

2. It also owns two financial asset investments in the shares of two listed companies. The details are given below:

Investment in company A- Acquired shares on 1^st June 2019 at a cost of RO 75,000 for the purpose of trading. Its fair value at the end of the year is RO 95,000

Investment in company B- Acquired investments at a cost of RO 45,000 to hold indefinitely. Its fair value on 31^st December 2019 is RO 60,000

1. How will you show this in the Financial Statements of the company? (2 marks)

3. An investment being classified as held for trading is valued using the revaluation model at RO 800,000. As of now the fair value is RO 790,000 which does not include the cost of RO 10,000 for selling the Asset.

a. Show the above transaction in the financial statements. (2 marks)

D) The investment of parrys group includes investment in Azad Ltd. It has invested in 25,000 shares of Azad ltd on 30^th September 2013 at a cost of RO 125,000. The transaction costs for investment was RO 10,000. The shares were classified as held for sale. On 31^st December 2013, the fair value of a share was RO 6.10.

1. Show the above transaction in the financial statements of the company during the year ended 31^st December 2013? (2 marks)