I) Dividends in arrears on cumulative preferred shares are?

a) recorded as either a current liability or noncurrent liability depending on when they were first in arrears

b) not possible under IFRS

c) recorded as a current liability

d) reported only in the notes to the financial statements

II) On December 2014 the carrying value of goodwill in the accounts of Farrows Ltd is 1,500,000. The recoverable amount is estimated to be 1,200,000 at the same date. Which of the following statements is true for 2014?

1. There is an impairment loss of 300,000$
2. There is a gain on non-impairment of 300,000$
3. There is an impairment loss of 1,500,000$
4. No journal entry made