Impairments of debt investments at amortized cost are
Q: definition and recognition criteria of liabilities
A: Liability is the obligation to be repaid or loss to be met in future.
Q: portion of long-term debt should elect one: a. be reclassified as a current liability. b. be…
A: The liabilities can be classified as current or long term liabilities.
Q: If in subsequent period, there is objective evidence of recovery in impairment previously recognized…
A: If previously Amortized debt measured by amortised cost has been recognized as debt in equity…
Q: In the context of handling debt - like items in M&A, what is the most buyer-friendly approach for…
A: The most buyer-friendly approach for items representing a hard claim that must be paid post-close in…
Q: with priority only
A: The statement of affairs is similar to the statement of financial position expect for the asset are…
Q: Match each of the items below with its most appropriately-related “letter” classification. (“Letter”…
A: As per the company policy, since you have posted a question with multiple sub-parts, we will solve…
Q: Which of the following financial assets are assessed for impairment? Equity investments at Fair…
A: The underlying premise of IAS 36 is that an asset should not be carried in the financial statements…
Q: 3. Statement 1: An entity shall begin.capitalizing borrowing costs as part of the cost of qualifying…
A: Answer is Option c) Both the statements are correct
Q: Match each of the items below with its most appropriately-related “letter” classification. (“Letter”…
A: Since the question has more than 3 sub-parts, the first 12 subparts are answered. If you want the…
Q: When a debt investment at FVOCI is reclassified to amortized cost, the entity will a. Remeasure the…
A: The financial asset is to be transferred at Fair value from FVTOCI to amortized cost.
Q: Which of the following loan commitments are within the scope of IPFRS 9? * Loan commitments that the…
A: the following loan commitments are within the scope of IPFRS 9:: Loan commitments that can be…
Q: Why are liability accounts included in the capital acquisitionand repayment cycle audited…
A: Liability accounts in the capital acquisition and repayment cycle are audited differently from…
Q: Perpetual debt instruments a. Are compound financial instruments b. Are derivative financial…
A: Perpetual debt instruments seem to be debt funds that do not have an expiration date. The issuer…
Q: Which of the following is stated correctly? a. Current liabilities follow non-current liabilities…
A: Definition: Liability: Liability is an agreement made by a company to pay a certain amount for the…
Q: A deposit received is reported as a * current asset investment revenue
A: Note: As per BARTLEBY guidelines, when multiple questions are given then first question is to be…
Q: a) Prepare the journal entry to record Sarasota's investment in Washi. Assume that any unexplained…
A: Introduction: - Journal entry is the first stage of accounting process. Journal entry used to record…
Q: PFRS 9 can an entity classify financial assets that meet the amortized cost criteria as at FVTPL?
A: As per PFRS 9, an entity may classify financial assets initially according to the measurement at…
Q: GAAP requires that debt issue costs be recorded separately and amortized over the term of the…
A:
Q: Indicate how unrealized holding gains and losses should be reported for investments classified as…
A: Unrealized holding gains and losses: An unrealized gain is a profit recorded on paper results from…
Q: Transaction costs incurred the effective interest rate to be used for amortization of an investment…
A: Costs incurred during buying and selling any good or a service are generally referred to as…
Q: Pittman Framing's cost formula for its supplies cost is $1110 per month plus $11 per frame. For the…
A: The following formula used to calculate spending variance as follows:- Spending variiance = Actual…
Q: Which of the following shall an entity disclose for loans payable recognized at the end of the…
A: Disclosures about conditions that existed at the end of the reporting period should be updated in…
Q: Under PFRS 9, bond investments held for collection of contractual cash flows are measured at
A: As per PFRS - 9, all financial instruments are initially measured at fair value adjusted by the…
Q: A gain or loss from debt restructuring should be A. treated as increase or decrease in Paid-in…
A: Earlier gain or loss from debt restructuring was transferred to capital reserve, but now gain or…
Q: The return on plan assets a.is the change in the fair value of the plan assets during the year. b.…
A: Introduction: A long-term employee benefit fund's plan assets are assets/investments kept for the…
Q: unamortized premium
A: Any unamortized premium should be reported on the balance sheet of the issuing corporation as Answer…
Q: For each case of a financial asset that is not related to one another, explain (must be accompanied…
A: Step 1 Financial assets are the assets which have the following characteristic Contractual…
Q: Financial liabilities that are classified as amortized cost are subsequently measured at A. Partly…
A: Lets understand the meaning of financial liability. Financial liability is a contractual obligation…
Q: Which of the following reclassifications of financial assets is permitted under PFRS 9? a.…
A: Financial Assets- Financial Assets are investment assets or non-physical assets whose value is…
Q: On January 1, 2023, Sheffield Corporation purchased 20% of the common shares of Martz Limited for…
A: Investment refers to the asset which is acquired by the investor for the motive of generating income…
Q: The capitalization rate used to determine the capitalizable borrowing cost should be disclosed.…
A: It is pertinent to note that as per IAS 23 borrowing costs incurred for acquisition, construction of…
Q: How shall an entity subsequently measure financial liabilities? Is IFRS measurement of financial…
A: Financial liabilities can be measured at amortized cost by using effective interest method and it…
Q: ilities that are not secured by specific assets are called: Multiple Choice O General credit…
A: Liabilities -Liabilities are the future monetary obligations of a business to individuals or…
Q: Which of the following reclassifications of financial assets is permitted under PFRS 9? a.…
A: A financial asset is a liquid asset whose value is derived from a contractual right or ownership…
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…
Impairments of debt investments at amortized cost are
- recognized as component of Other Comprehensive Income.
- based on fair value for non-trading investments.
- based on discounted contractual
cash flows. - Evaluated at each reporting date.
Step by step
Solved in 3 steps
- Short-term debt expected to be refinanced may be classified as long-term if off-statement of financial position financing is to be obtained after the statement of financial position date but before the issue date of the financial statements. TRUE or FALSEUnrealized gains/losses of trading securities and available-for-sale securities investment are reported on the Balance sheet as part of Investment. Income statement and accumulated other comprehensive Income respectively. Income statement. Accumulated other comprehensive Income.choose from the following accounts: Accumulated Other Comprehensive Income Allowance for Investment Impairment Bond Investment at Amortized Cost Cash Commission Expense Dividends Receivable Dividend Revenue FV-NI Investments FV-OC|Investments Gain on Disposal of Investments - FV-NI Gain on Disposal of Investments - FV-OCI Gain on Sale of Investments GST Receivable Interest Expense Interest Income Interest Payable Interest Receivable Investment in Associate Investment Income or Loss Loss on Discontinued Operations Loss on Disposal of Investments FV-NI Loss on Disposal of Investments FV-OCI Loss on Impairment Loss on Sale of Investments No Entry Note Investment at Amortized Cost Other Investments Recovery of Loss from Impairment Retained Earnings Unrealized Gain or Loss Unrealized Gain or Loss - OCI
- The current portion of long-term debt should a.be reclassified as a current liability b.be paid immediately c.not be separated from the long-term portion of debt d.be classified as a long-term liabilityWhich item below is not a current liability? Select one: O O a. Unearned revenue b. Trade accounts payable c. cash dividends d. The currently maturing portion of long-term debtWhat are the reasons for statutory debt limits and explain the terms debt margin and overlapping debt? What are the purpose and types of debt service funds? What are the journal entries utilized to account for activities of debt service funds?
- When 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.1. Assuming the investment is appropriately recognized as a financial asset intended to collect contractual cash flows and also to sell the bonds in open market: How much unrealized gain (loss) is to be reflected in the statement of changes in equity and statement of comprehensive income at yearend 2020? 2. Assuming the investment is appropriately recognized as a financial asset intended to collect contractual cash flows and also to sell the bonds in open market: What is the carrying value of the investment on December 31, 2020? 3. Assuming the investment is appropriately recognized as a financial asset intended to collect contractual cash flows and also to sell the bonds in open market: Determine the gain or (loss) to be recorded upon the sale of the investment.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
- 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 statement is incorrect regarding reclassification of financial assets? a) Reclassifications to FVTPL measurement category result to amounts recognized in profit or loss. b.)The effective interest rate is determined on the basis of the fair value of the asset at the reclassification date when an entity reclassifies a financial asset out of FVTPL measurement category. c.) The effective interest rate and the measurement of expected credit losses are not adjusted as a result of the reclassification from AC measurement category to FVTOCI and vice versa. d.) All reclassifications out of FVTOCI measurement category result in ‘reclassification adjustmWhich of the following is correct about contingent liabilities and provisions? The terms are interchangeable. A provision is based on an estimate while a contingent liability can be estimated reliably. A provision is disclosed in the statement of financial position while a contingent liability is disclosed in the notes. A contingent liability does not need to be disclosed in an entity's annual report.
