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

1. The value of investment held by Pylos is RO 750,000 and is classified as held for trading on 30^th September 2017. The fair value of the investment after the expenses comes to RO 650,000 on 30^th September. The asset was sold for RO 665,000 on 20th December 2017. The year end of the entity is 31 December 2017.

1. How would the classification as held for sale, and subsequent disposal, be treated in the 2019 financial statements? (2 marks)
2. State and show whether the answer will be different if the value of the investment on 30^th September 2017 was RO 600,000? (2 marks)

2. Pylos ltd also has investments in the shares of two SAOG companies. The details are given below:

- Acquired shares of Marhab ltd on 1^st June 2016 at a cost of RO 90,000 for the purpose of sale. Its fair value at the end of the year is RO100,000

- Bought investments of Ameen Ltd at a cost of RO 50,000 to hold until maturity. Its fair value on 31^st December 2016 is RO 40,000

1. Show the above transactions be treated in the Financial Statements of the Pylos Ltd. (2 marks)

3. An investment being classified as held for sale is currently carried under the revaluation model at RO 800,000. Its latest fair value is RO 700,000 and the estimated costs of selling the asset are RO10,000.

1. Show how this transaction would be recognized in the financial statements. (2 marks)

D) The Pylos group has also invested in 150,000 shares of ABC ltd on 30^th September 2014 for RO 630,000 incurring transaction costs of RO 10,000. The shares purchased for sale to earn profits in the future. On 31^st December 2014, the fair value of a share was RO 4.9

1. Show how it will appear in the financial statements of the company during the year ended 31^st December 2014? (2 marks)