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1)True Identify, by indicating the relevant box in the table below, whether each of the following statements about provisions and contingencies is true or false

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1)True Identify, by indicating the relevant box in the table below, whether each of the following statements about provisions and contingencies is true or false. A company should disclose False details of the change in carrying amount of a provision from the beginning to the end of the year Contingent assets must be True Faise recognised in the financial statements in accordance with the prudence concept. True False Contingent liabilities must be treated as actual liabilities and provided for if it is probable that they will arise.

2)Identify, by clicking on the relevant box in the table below, whether each of the following statements about research and development expenditure are true or false, according to IAS 38 Intangible assets. True False True False Research expenditure, other than capital expenditure on research facilities, should be recognised as an expense as incurred. In deciding whether development expenditure qualifies to be recognised as an asset, it is necessary to consider whether there will be adequate finance available to complete the project. Development expenditure recognised as an asset must be amortised over a period not exceeding five years. True False

3) Identify, by indicating the relevant box in the table below, whether each of the following statements is correct or incorrect. Correct Incorrect Companies should never change the presentation or classification of items in their financial statements, even if there is a significant change in the nature of operations. Companies should create provisions in times of company growth to be utilised in more difficult times, to smooth profits. Correct Incorrect