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Answer these three questions.

Describe the following 1. Unrealized gains or losses on derivatives held on cash flow hedges. 2.Unrealized gains or losses on investment available for sale. 3.Dividends declared in a particular period. 4.Gain or losses on foreign exchange translations. 5.Recording of previous periods errors in revenue and expenditure after preparation of final accounts in the current periods.

For each case of a financial asset that is not related to one another, explain (must be accompanied by an explanation) whether meeting the contractual cash flow test consists of only principal and interest: 1) Investments in debt instruments in the form of bonds with a specified maturity date. The bonds have a predetermined principal payment and interest on the principal amount payable is linked to the stock equity index on the stock exchange 2) Investments in debt instruments in the form of bonds from toll road management companies, whose contractual cash flows from these financial assets change according to the number of motorized vehicles that use certain toll roads. 3) Investments in debt instruments with a specified maturity date. A variable interest rate which gives the borrower the option of choosing a market rate of three months LIBOR for three months or one month LIBOR for one month

Which items are NOT other comprehensive income? 1. Unrealized gain/loss on available-for-sale debt securities 2. Unrealized gain/loss on trading debt securities 3. Foreign currency translation adjustments 4. Unrealized gain/loss on derivatives designated as a fair value hedge 5. Unrealized gain/loss on pension obligation. 6. Unrealized gain/loss on equity securities O 2, 4, 6 O 1, 2, 3, 4 O 1, 2, 6 O 3, 4, 5

Which of the following is an assumption made in the preparation of the financial statements? Select one: a. The current market value is assumed to be less relevant than the original cost paid. b. Financial statements are prepared for a specific entity that is distinct from the entity's owners. c. The preparation of financial statements for a specific time period assumes that the balance sheet covers a designated period of time. d. Financial statements are prepared assuming that inflation

Answer asap.

An important element in accounting for investment securities concerns the distinction between its noncurrent and current classification. Required: a. Why do most companies maintain an investment portfolio consisting of both current and noncurrent securities? b. What factors should an analyst consider when evaluating whether investments in marketable equity securities are properly classified as current or noncurrent? How do these factors affect the accounting treatment for unrealized losses?

Which of the following statements is not true of the fair-value method of accounting for marketable securities? Select one: A. The investment account is recorded at current fair value on the balance sheet. B. Interim changes in the investments’ fair value may or may not affect income depending on the securities’ classification. C. This method is used when the reporting company generally owns less than 20% of the investee company. D. Dividends are treated as a return of the capital invested. E. None of the above

According to APB Opinion No. 22, the initial note to the financial statements should describe: a. the calculation of comprehensive income b. the insignificant concentrations of credit risk c. the significant accounting policies d. the objectives of holding derivatives and the strategies for achieving them

1. More than one measurement bases apply to investments in debt securities and investment in equity under PFRS 9. What are these measurement bases?2. Identify critical questions to be asked in applying PFRS 9 in the measurement of financial assets.3. How would you distinguish an equity instrument from a debt instrument?

Where are changes in the fair value of equity securities and reported? These fair values are readilydeterminable and the securities do not provide the owner with significant influence over the investee.a. as income or loss on the income statementb. as a component of accumulated other comprehensive income on the balance sheetc. as a prior-period adjustment to retained earnings on the balance sheetd. these value changes are not reported until the gain or loss is realized

IFRS requires companies to measure their financial assets at fair value except when based on: a. whether the equity method of accounting is used. b. whether the financial asset is a debt investment. c. whether the financial asset is an equity investment. d. whether an investment is classified as trading.

When the market value of a company’s portfolio of available-for-sale securities is lower than its cost，the difference should be: a. accounted for as a valuation allowance deducted from the asset to which it relates                                                                                                                b. accounted for as an addition in the shareholders’ equity section of the balance sheet                                                                                                     c. accounted for as a liability                                                                            d. disclosed and described in a note to the financial statements but not accounted for.

Classifying Financial Statement Amounts For the following six items, indicate which financial statement category would be affected: (1) net income or (2) other comprehensive income.               d. Unrealized loss on a TS debt investment.   e. Unrealized gain on an AFS debt investment accounted for using the fair value option.   f. Unrealized loss on an equity investment measured at FV-NI.

All of the following components of other comprehensive income are reclassified subsequently to profit or loss, except Group of answer choices A. Unrealized gain on investment in bonds securities measured at fair value through OCI B. Gain from translating financial statements of a foreign operation C. Actuarial gain on projected benefit obligation D. Unrealized gain on futures contract designated of cash flow hedge

14) Which of the following is the least liquid current asset? A) Accruals B) Accounts receivable C) Marketable securities D) Inventory

In investment in debt securities accounted for at fair value through other comprehensive income, the difference between the fair value and the accumulated unrealized gain or loss - OCI presented in the statement of financial position would normally equal to: *   A. The unrealized gain or loss - OCI presented as part of other comprehensive income     B. The amortized cost of the debt securities     C. The interest income for the period     D. The fair value of the debt securities in the previous period

impairments on financial instruments are ? A) recognized as a realized loss if the impairment is judged to be temporary B) based on discounted cash flows for securities C) based on fair value for available-for-sale investments and negotiated values for hel-to-maturity investments D) evaluated using the CECL model similiar to receivables