Statement 1 is incorrect: Upanishads are known for their philosophical dialogues and teachings, and they often employ allegories and parables to convey complex ideas. For example, the Chandogya Upanishad contains the well-known parable of 'Satyakama Jabala' and his search for truth.

Statement 2 is correct: Upanishads form the concluding part of the Vedas and are known as 'Vedanta' (the end of the Vedas). They are believed to have been composed between 800-500 BCE. Puranas, on the other hand, are a later genre of Hindu texts, composed from around the 3rd century CE onwards.