Question 2 A company borrowed $14,000,000 on the 1 July 2013. The term ofthe loan is 7 years, with interest to be paid each year on 30 June each year In addition, $2,000,000 of the principal is to be paid on 30 June each year. Which of the following statements is correct? In the statement of financial position at 30 June 2017: This will be included as a current liability B. A. This will be included as a non-current liability This will be included partly as a current liability and partly as non-current None of the other answers are correct D. Question3 Provisions which fail the recognition criteria and where the possibility of an outflow is remote are required to A be recognised as a contingent liability B. be disclosed as a contingent liabillity C. not be disclosed or recognised in the financial statement (or notes) at all D. None of the other answers are correct Question 4 Summer Limited is a manufacturer of swimming pools and provides its customers sale/completion, that there will be some daims under the warranties and the expected cost of meeting these claims has been estimated. The appropriate treatment of this item under 1AS 37/AAS8 137 Provisions, Contingent Liabilities an Contingent Assets, Is to The warranty applied for three years from the date of sale/completion Past experience shows A recognise a provision based on estimated cost these clalms create a reserve for the estimated costs of the warranty clalms c recognise the expenses in future perkods in which the economkc outflows occur (l.e when warranty clains are met) None of the other answers are correct D