Which of the following statements is correct? Statement 1: If the revaluation model is used for property, plant and equipment, revaluations must subsequently be made with sufficient regularity to ensure that the carrying amount does not differ materially from the fair value at each reporting date. Statement 2: When an item of property, plant and equipment is revalued, there is no requirement that the entire class of assets to which the item belongs must be revalued. A. Statement 1 only is correct B. Statement 2 only is correct C. Both statements are correct D. Neither statement is correct a. C O b. D . O d. B Which ONE of the following would require a provision for a liability to be created by London Co. at its reporting date of 31 October 2019? A. The government introduced new laws on data protection which come into force on 1 January 2020. London's directors have agreed that this will require a large number of staff to be retrained. At 31 October 2019, the directors were waiting on a report they had commissioned that would identify the actual training requirements. B. At the date, London is negotiating with its insurance provider about the amount of an insurance claim that it had filed. On 20 November 2019, the insurance provider agreed to pay $180,000. C. London makes refunds to customers for any goods returned within 30 days of sale, and has done so for many years. D. A customer is suing London for damages alleged to have been caused by London's product. London is contesting the claim and, at 31 October 2019, the directors have been advised by London's legal advisers it is very unlikely to lose the case. O a. B O b. D . O d. C An entity leases a machine with legal title of the asset passing after two years. The entity usually depreciates machines over three years. Over what period should the machine be depreciated? A. 1 year B. 2 years C. 3 years D. 4 years . O b. B . D d. A According to IAS 38 Intangible assets, which of the following statements is/are correct? (i) (ii) (iii) Capitalised development expenditure must be amortised over a period not exceeding five years. If all the conditions specified in IAS 38 are met, development expenditure may be capitalised if the directors decide to do so. Capitalised development costs are shown in the statement of financial position under the heading of non-current assets. (iv) Amortisation of capitalised development expenditure will appear as an item in a company's statement of changes in equity. a. (iii) only O b. (i) and (iii) . (i) and (iv) d. (ii) and (iii) Using the requirements set out in IAS 10 Events after the Reporting Period, which of the following would be classified as an adjusting event after the reporting period in financial statements ended 31 March 2019 that were approved by the directors on 31 August 2020? A. A reorganisation of the enterprise proposed by a director on 31 January 2020 and agreed by the Board on 10 July 2019. B. A strike by the workforce which started on 1 May 2019 and stopped all production for 10 weeks before being settled. C. The receipt of cash from a claim on an insurance policy for damage caused by a fire in a warehouse on 1 January 2019. The claim was made in January 2020 and the amount of the claim had not been recognised at 31 March 2019 as it was uncertain that any money would be paid. The insurance enterprise settled with a payment of $1.5 million on 1 June 2019. The enterprise had made large export sales to the USA during the year. The year-end receivables included $2 million for amounts outstanding that were due to be paid in US dollars between 1 April 2019 and 1 July 2019. By the time these amounts were received, the exchange rate had moved in favour. D. a. D O b. B . O d. A