Financial assets
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Q: PFRS 9
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In accordance with PFRS 9, an entity may reclassify
a. Derivatives
b. Financial assets designated at FVTPL
c.None of these
d. incestments in equity instruments designated at fvtoci
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- ____ 18. The acquisition of an asset on creditA) leaves the total assets unchangedB) decreases assets and increases liabilitiesC) increases assets and liabilitiesD) increases assets and owner’s equity____ 19. The account records long-term debt of thebusiness entity for which it has pledged certainassets as securityA) notes payableB) accounts payableC) mortgage payableD) bonds payable____ 20. The accounting equationA) is used to determine the amount of liabilities owedB) is used to determine the amount of income earnedduring the periodC) shows the claims on the owner’s equity by thecreditorsD) shows the claims on the entity’s assets by both thecreditors and the owner____ 21. When the proprietor withdraws cash or otherassets, the withdrawal account isA) debitedB) creditedC) debited and creditedD) not affected____ 22. A credit entry decreases the balance ofA) owner’s equityB) assetsC) incomeD) liabilities____ 23. When an entity pays employees for theirservices, the effect is an increase…Which of the following are examples of changes in the gross carrying amount of financial instruments (PFRS 7) that contributed to the changes in the loss allowance? * Changes because of financial instruments originated or acquired during the reporting period The modification of contractual cash flows on financial assets that do not result in a derecognition of those financial assets in accordance with IFRS 9 Changes because of financial instruments that were derecognised (including those that were written-off) during the reporting period Changes arising from whether the loss allowance is measured at an amount equal to 12-month or lifetime expected credit lossesAn arrangement for creditors to accept an amount less than the amount owed to them is referred to as a a. charge and discharge agreementb. composition agreementc. bankruptcy agreementd. chandler agreement
- S1: Bond investments classified and accounted for as financial asset at amortized cost are recognized initially at fair value plus transaction costs that are directly attributable to the acquisition. S2: Transaction costs attributable to the acquisition of bond investments held for trading or at fair value through profit or loss are expensed immediately. O Only S1 is TRUE O Only S2 is TRUE Both statements are TRUE O Both statements are FALSEHow does IFRS differ from U.S. GAAP with respect to using the equity method?Derecognition is the removal of all or part of a recognised asset or liability from an entity’s statement of financial position in accordance with the Conceptual Framework 2018. The above aim is to normally achieve derecognising via the following below statements: Which of the statements as mentioned below is NOT correct to achieve the above aim? 1) Derecognizing any assets or liabilities transferred, consumed, collected, fulfilled or expired 2) Derecognizing any resultant income or expense 3) Recognizing any resultant income or expense 4) Continuing to recognize assets or liabilities retained (2)
- Under IFRS 9, the cumulative balance of equity as a result of measuring financial assets at fair value through other comprehensive income shall be reversed to profit or loss at the date the security is sold shall be reversed to profit or loss when there is objective evidence of impairment shall not be reversed to profit or loss but may be transferred to another equity account shall not be reversed to profit or loss and may not be transferred to another equity accountDefine each of the following terms:h. Indentures; mortgage bond; debenture; subordinated debentureWhich 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
- Statement I: The equity securities issued as part of the consideration transferred shall be measured at the fair value of the shares at the date of acquisition.Statement II: The goodwill in the books of the acquiree shall be measured at its fair value at the date of acquisition. a. True, False b. False, True c. True, True d. False, FalseWhen the contractual cash flows of a financial asset are renegotiated or otherwise modified and the renegotiation or modification does not result in the derecognition of that financial asset in accordance with PFRS 9, an entity shall I. Recalculate the gross carrying amount of the financial asset as the present value of the renegotiated or modified contractual cash flows that are discounted at the financial asset's original effective interest rate. II. Recognize a modification gain or loss in profit or loss. A. I only. B. Neither I nor II. C. ll only. D. Both I and II.Which of the following reclassifications of financial assets is permitted under PFRS 9? a. reclassification from FVPL to FVOCI (election) b. reclassification from FVOCI (election) to FVPL c. reclassification from held for trading equity securities to amortized cost d. reclassification from FVOCI (mandatory) to amortized cost
