Question
4. The following information is presented to you about the investments made by Maha group in various companies. A) An investments value when purchased was
4. The following information is presented to you about the investments made by Maha group in various companies. A) An investments value when purchased was RO 650,000. It is categorized as held for sale on 30th November 2019. On that date its fair value minus costs are expected at RO 600,000. The asset was sold for RO 605,000 on 20th December 2019. The year end of the corporation is 31 December 2019. a. How would you treat the held for sale and its consequent sale would be treated in the financial statements of the company in the year 2019? b. If it has a value of 550,000 on 30th November 2019. The answer would be different or the same? (B) It also owns two financial investments in the shares of two listed companies. The details are given below: Investment in company A- Purchased shares on 1st June 2019 at a cost of RO 50,000 for trading. Its fair value at the end of the year is RO60,000 Investment in company B- Bought investments at a cost of RO 25,000 to hold permanently. Its fair value on 31st December 2019 is RO 20,000
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