Contrast the presentation requirements of the Conceptual Framework for Financial Reporting and of AASB 132 in relation to such instruments as convertible notes, particularly where they concern the probability of conversion. Are you more inclined to agree with the requirements of AASB 132 or the suggestions provided by the conceptual framework? Why?

6. On December 31, 2018, the account for Drake Oil Company's individually insig- nificant unproved properties had a balance of $800,000. The impairment allow- ance account had a balance of $75,000. REQUIRED: Give the entries for each of the following transactions occurring in 2018, 2019, and 2020. (All transactions concern individually insignificant unproved leases.) a. Assuming Drake has a policy of maintaining a 55% allowance, i.e., 55% of gross unproved properties, give the entry to record impairment on December 31, 2018. b. During 2019, Drake surrendered leases that cost $300,000. c. During 2019, leases that cost $50,000 were proved. d. During 2019, leases costing $310,000 were acquired. e. Give the entry to record impairment on December 31, 2019. f. During 2018, leases costing $428,000 were surrendered.