Which statement is false and which statement is true?

8. Statement 1: When an associate has outstanding noncumulative preference shares, the investor shall compute its share of earnings after deducting the preference dividends only when declared. Statement 2: Adjustments to the carrying amount of the investment in associate may be necessary for changes in the investor's proportionate interest in the investee arising from changes in the investee's equity that have not been recognized in the investee's profit or loss. But such changes are limited only to those arising from revaluation of property, plant and equipment