X Ltd commenced business with $1000 and purchased 5 precious gems at $200 each. At the end of the first year, X Ltd sold 3 precious gems for $400 each, receiving $1200 in cash. The cost of precious gems increased to $250 by the end of the year. The rate of inflation was 10% during the year.

X Ltd had no other transactions during the year.

If X Ltd uses current replacement cost measurement and the physical concept of capital, what is the maximum dividend that could be paid at the end of the year and still maintain capital:

$600

$200

$500

$450

2.AASB 9 Financial Instruments allows the use of fair value measurement or amortised cost for financial instruments with contractual cash flows, depending on the business model under which they are held. This is an example of:

IA principles-based accounting requirement

IIA mixed measurement model

IIIAccounting conservatism

II and III only

I only

I and II only

I, II and III