The following information is presented to you about the investments made by Armax group in various companies.

1. An investment whose value was RO 500,000 is classified as held to maturity on 30^th November 2019. The fair value minus costs are calculated at RO 560,000. The asset was sold for RO 555,000 on 20th December 2019. The year end of the entity is 31 December 2019.

1. How do you show the investments held to maturity, and its resulting sale, be treated in the 2019 financial statements? (2 marks)
2. How the answer would be different if the value of the investment on 30^th November 2019 was RO 400,000? ( 2 marks)

2. It has investments in in the shares of two public limited companies. The details are given below:

Investment in company P- On 1^st May 2018, Armax group bought shares at a cost of RO 70,000 for the purpose of sale. Its fair value at the end of the year is RO80,000

Investment in company Q- Permanent Investments were made at a cost of RO 35,000. Its fair value on 31^st December 2019 is RO 30,000

1. Show how the above transactions will appear in the Financial Statements of the company? ( 2 marks)

3. Armax uses revaluation model for the investment which it has classified as held for sale. Its current value according to revaluation model is RO 500,000. Its newest fair value is RO 600,000 and the estimated costs for selling the investments are RO10,000.

a. Show how this transaction would appear in the financial statements. (2 marks) D) The Armax group has also invested in 200,000 shares of XYZ ltd on 30^th September 2019 for RO 840,000 incurring transaction costs of RO 10,000. The shares were not purchased for trading but to realize the gains in the future. On 31^st December 2019, the fair value of a share was RO 4.80.

a. Show how it will appear in the financial statements of the company during the year ended 31^st December 2019? ( 2 marks)