Company XYZ acquired a plot of land for a cost of P25,000,000. In order to complete the purchase, the company secured a loan from Unreliable Bank for P20,000,000 with an interest rate of 6%, with the land listed as collateral in case the company defaults on 6 consecutive interest payments.

Company XYZ uses the revaluation model to measure PPE of this class and on year 3, the land was determined to have a fair value of P28,000,000.

Which of the following information are required to be disclosed in Company XYZ's notes to financial statements?

1. The outstanding amount of the loan at the end of year 3 and the fact that the land is used as collateral.
2. The P3,000,000 revaluation surplus included in equity, including any restrictions on distribution to shareholders relative to this.
3. The terms of the loan, including interest rate and terms of repayment.

Group of answer choices

a. Only 1 is required to be disclosed.

b. Only 1 and 2 are required to be disclosed.

c. None are required disclosures, the company is only encouraged to make these disclosures.

d. All are required to be disclosed.