An entity shall measure equity instruments issued to extinguish all or part of a financial liability at fair value of the liability extinguished fair value of the equity instruments issued carrying amount of the liability extinguished par value of the equity instruments issued
Q: Which of the following statements is TRUE? a. The acquirer shall measure the identifiable assets…
A: Answer:- a True Explanation:- The statement is true the acquirer must value the identifiable assets…
Q: What is the date on which the fair value of the equity instrument granted is measured? a.…
A: Solution: For transactions measured at the fair value of the equity instruments granted, fair value…
Q: When a share-based payment transaction is with an employee and others providing similar services,…
A: Share-based payment means where an entity enters into an transactions with the employees and others…
Q: prepares separate financial statements
A: Correct Answer is :- A at cost
Q: S1: In the financial settlement of a contingent consideration classified as financial liability, the…
A: A business combination occurs when an entity acquires control over an organization. It can also be…
Q: An appropriation of accumulated profits for possible contingencies should be a. Transferred to…
A: A contingency expense is an expense which can lead to outflow of funds from the company in the…
Q: At initial recognition, an entity may make an irrevocable election to present in other comprehensive…
A: At initial recognition, an entity may make an irrevocable election to present in other comprehensive…
Q: 5. A gain or loss may arise from which of the following? a. The initial recognition of the debt and…
A: Following is the answer to the given question
Q: 5. A gain or loss may arise from which of the following? a. The initial recognition of the debt and…
A: Liabilities are the obligation of the business towards third parties, or two internal employees, or…
Q: Entities desiring to issue equity or debt must provide a set of financial statements to any…
A: Corporation: The form of business entity ,which is incorporated by state law into a separate…
Q: Which of the following is correct regarding the classification of investment in debt instruments as…
A: The FVTOCI classification is mandatory for certain debt instrument assets unless the option to FVTPL…
Q: 19. When the entity uses the IFRS for SMEs, investments in jointly controlled entities must be…
A:
Q: The concept of capital maintenance chosen by an entity shall determine the accounting model used in…
A: The capital maintenance concept states that a corporation produces a profit only when all operating…
Q: PFRS 9 permits an entity to make an irrevocable election to present in other comprehensive income…
A: As per PFRS 9, Amounts presented in other comprehensive income shall not be subsequently transferred…
Q: Common stockholders represent
A: Common stockholders are owners of an entity. They hold the common stock of the entity.
Q: . PAS 28 defines an ‘associate’ as Choices An entity that controls one or more entities. An…
A: Solution 1: PAS 28 defines an ‘associate’ as "An entity over which the investor has significant…
Q: rding to AASB 132 Financial Instruments: Presentation, which of the following items would be…
A: As per AASB 132 – Financial Instruments: Presentation Financial liability is a contract that: gives…
Q: Which of the following is correct regarding the classification of investment in debt instruments as…
A: Option (c) is correct answer.
Q: Under PFRS 3, when is a gain recognized in consolidating financial information? a. In a combination…
A: Introduction:- The merger and purchase of several smaller enterprises into a few considerably bigger…
Q: What is the principle for recognition of a financial asset in PFRS 9? A. A financial asset is…
A: Financial asset is a form or type of assets under which rights are obtained to receive future…
Q: Financial contracts are those which give simultaneous rise to the financial assets of one entity and…
A: Introduction: A financial contract is an arrangement in the form of an individually negotiated deal,…
Q: When share options issued to employees are vested prior to the predetermined vesting date, the…
A: Solution: As per IFRS, fair value of the share-based payment, determined at the grant date, should…
Q: PFRS 9 permits an entityto make an irrevocable election to present in other comprehensive income…
A: Solution: According to PFRS 9, "An entity may make an irrevocable election to present in other…
Q: nvestments in equity instruments are financial assets because they are Group of answer choices…
A: Financial instrument: International financial reporting standard- 9 (IFRS-9) states the rules and…
Q: The following information must be provided in the notes to the financial statements.
A: Notes to financial statements are important part of financial statements. This is also known as…
Q: Which of the following statements best describes the term "liability"? * a. An excess of equity over…
A: The balance sheet represents the financial position of the business with assets and liabilities on a…
Q: What is the principle for recognition of a financial asset in PFRS 9? Group of answer choices: A…
A: Correct answer is D. A financial asset is recognized when, and only when, the entity becomes a party…
Q: cordance with PFRS 2, Share-based Payment, how should an entity recognize the change in fair value…
A: The grant of shares or share based option to the employee and director by the most company in order…
Q: According to PFRS9 Financial Instruments, a financial instrument is recognized when the entity…
A: As per PFRS 9 Financial Instruments, a financial instrument is recognized when the entity becomes a…
Q: Required: Financial Assets can be either classified as an equity instrument or a debt instrument.…
A: As per MFRS 9 Financial Instrument, a financial asset can be classified as an equity instrument, if…
Q: PFRS 9 permits an entity to make an irrevocable election to present in other comprehensive income…
A: Option (a) i.e. neither 1 nor 2, is the correct answer. Explanation is given in the next step.
Q: Which of the following statements is TRUE? O The acquirer shall measure the identifiable assets…
A: As per IFRS 3 Acquisition Method shall be used for accounting businees combination. As per the IFRS…
Q: An entity need not disclose... a. A description of the nature and purpose of each reserve within…
A: This question deals with the which things entity does not needs to disclose. As per para 79 of the…
Q: Dividends are recognized in profit or loss only when: Group of answer choices: The entity’s right…
A: Solution: Dividends are recognized in profit or loss only when: 1. The entity’s right to receive…
Q: When a debt investment at FVOCI is reclassified to FVPL, an entity will a. Remeasure the investment…
A: A contract entered into between two parties that give rise to a financial asset for one party and a…
Q: For cash-settled share based payment transactions, until the liability is settled, the entity is…
A: Solution: As per IFRS 2, "For cash-settled share-based payment transactions, entity should measure…
Q: Which statement is true in relation to business combination achieved in stages? a. The pre-existing…
A: A business combination achieved in stages is called as a step acquisition
Q: * An entity reclassifies debt securities from FVOCI to Amortized cost. On reclassification date, the…
A: When a business changes its business model then, the entity should reclassify all the impacted…
Q: An entity is solvent if it can pay its currently maturing obligation.
A: Solvency: Solvency is the ability of a company to pay off its debts using assets in other words the…
Q: The equity component of a compound financial instrument is determined A. by allocating the issue…
A: Equity is the component of the shareholders' equity that includes only the portion of ownership in…
Q: Which of the following must be included on the face of the statement of financial position?…
A: According to IAS 1.54, following items to be shown on the face of financial position: Investment…
Q: Under the fair value option for debt investment, entities report all changes in fair value in…
A: Lets understand the basics. Fair value option means a option in which change in fair value in debt…
Q: Under IFRS 9, the cumulative balance of equity as a result of measuring the equity investment at…
A: As per IFRS 9, Financial instruments, The unrealized gain on changes in fair value of the financial…
Q: When an entity uses the fair value model, changes in the fair values of investment property are…
A: Fair value model and cost model are two methods of recording changes in fair value of investment…
Q: Dividends are recognized in profit or loss only when: a. It is probable that the economic benefits…
A: As per IFRS 9 dividend needs to recognize in profit and loss account when, Entity's right to…
Q: Under the conceptual framework for international financial reporting a non-controlling interest fits…
A: When ever a company acquires another company's share of more than 50%, it obtaines control over it…
Q: When a company acquires an affiliated company’s debt instruments from a third party, how is the gain…
A:
Q: In a consolidated statement of financial position, the non-controlling interest is shown: Group of…
A: Statement of financial position is one of the financial statement of the business, which shows all…
- fair value of the liability extinguished
- fair value of the equity instruments issued
- carrying amount of the liability extinguished
- par value of the equity instruments issued
Step by step
Solved in 2 steps
- Which of the following statements best describes the term "liability"? *a. An excess of equity over current assetsb. Resources to meet financial commitments as they fall duec. The residual interest in the assets of the entity after deducting all of its equityd. A present obligation of the entity arising from past eventsWhat is the date on which the fair value of the equity instrument granted is measured? a. Measurement date b. Report date c. Grant date d. Exercise date5. A contract that will be settled in the entity’s own equity instruments and under which the entity is obliged to deliver a variable number of the entity’s own equity instruments with a total value equal to a fixed amount is classified as a financial liability in the financial statements of the entity. True or False
- Debt issuance costs are: Accounted for as a deduction from the equity balance on the balance sheet Recognized initially as a current liability on the balance sheet Amortized over the term of the related debt liability Expensed on the income statement when the transaction occurs Which one is the correct answer please?Which of the following statements are true regarding financial instruments? (i) Financial instruments comprise of both financial assets and financial liabilities (ii) A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. (iii) Primary instruments are financial instruments in which an investor has made an investment in a specific instrument. (iv) A derivate instrument is normally linked to a primary instrument and transfers the financial risks inherent in the underlying primary instrument. Select one: a. (i) and (ii) b. (i) and (iii) only c. (i) only d. (i), (ii), (iii) and (iv)5. A gain or loss may arise from which of the following? a. The initial recognition of the debt and equity components of a compound financial instrument. b. The purchase, sale, issue or cancellation of the entity's own equity instruments. c. The conversion of bonds into the entity's own equity instrument. d. The settlement of a liability at an amount below or avo its carrying amount.
- Which of the following is the second option in measuring the equity instrument issued to extinguish a financial liability A.fair value of the equity instrument B.carrying amount of the equity instrument Cfair value of the financial liability D.carrying amount of the financial liability5. A gain or loss may arise from which of the following? a. The initial recognition of the debt and equity components of a compound financial instrument. b. The purchase, sale, issue or cancellation of the entity's own equity instruments. c. The conversion of bonds into the entity's own equity instrument. d. The settlement of a liability at an amount below or above its carrying amount. NOT FOR SALE! StuDOcucom respective authors.PROBLE other financial assets. associates and joint ventures. delivering cash or another financial asset. However, Entity A's not sufficient to justify offsetting because the rights and d. An intention to settle a financial asset and a financial 2 A contract that evidences a residual interest in the entity's assets after deducting all of its liabilities is classified as 4. Entity A issues an instrument that is re-purchasable by d. Liabilities arising from constructive obligations. Physical assets, such as inventories and PPE. and financial liability remain unaltered. Which of the following is within the scope of PAS 32? b. Contracts for the delivery or receipt of commodity and other non-financial items that can be settled net in cash or Financial assets in the form of investments in subsidiaries, 1. a. b. Co non-financial items that can be settled net in cash or Physical assets, such as inventories and PPE C. ssets after deducting all of its liabilities is classified as a. a financial…
- Under the fair value option for debt investment, entities report all changes in fair value in a.Equity b.Other comprehensive income c.Income or other comprehensive income d.IncomeWhich of the following statements is incorrect? a. The PAS 32 definition of "equity" reflects the basic accounting equation of "Assets - Liabilities = Equity." b. According to PAS 32, a contract is an equity instrument if it may result in the receipt or delivery of the entity's own equity instruments. C. Entity A issues a compound financial instrument for P1M. If the fair value of the liability component without the equity feature is P.8M, the value to be assigned to the equity component is P.2M. d. An intention to settle a financial asset and a financial liability on a net basis without the legal right to do so is not sufficient to justify offsetting because the rights and obligations associated with the individual financial asset and financial liability remain unaltered. %3DFair value is used to value which of the following balance sheet accounts? a. Prepaid expenses; patents; property, plant, and equipment b. Capital lease obligations, bonds payable c. Receivables net of allowance for doubtful accounts d. Debtsecurities available for sale, trading securities