q17) Under the current capital requirements in Basel agreement, assets in Category 4, 4 such as private loans, have an effective total capital-to-total-assets ratio of a .1.6% b. 8.6% c. 4% d. 2% e. 8%
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q17) Under the current capital requirements in Basel agreement, assets in Category 4, 4
such as private loans, have an effective total capital-to-total-assets ratio of
a .1.6%
b. 8.6%
c. 4%
d. 2%
e. 8%
Step by step
Solved in 2 steps
- Operational risk is included in the regulatory capital requirement calculation of which of the following. a. Pilar 2 b. Basel III regulation c. Pilar 3 d. Basel II regulation Clear my choiceOperational risk is included in the regulatory capital requirement calculation of which of the following. a. Pilar 2 b. Basel II regulation c. Pilar 3 d. Basel III regulationWhich of the following loan commitments are within the scope of IPFRS 9? * Loan commitments that the entity designates as financial liabilities at fair value through profit or loss Loan commitments that can be settled net in cash or by delivering or issuing another financial instrument Commitments to provide a loan at a below-market interest rate
- السؤال 17 ?On a certain long term debt, principal and interest is due for payment. This will be recorded under which one of the following type of expenditure Debt service expenditure O Capital outlay expenditure.b O Revenue expenditure CO Operating expenditure.d OLoan interest income ▸ D7/84 • The sequence in determining the taxability of interest income of an Fl: . Consider s.14(1) first . If not chargeable under s.14(1), then consider s.15(1)(i) 。 Interpretation on s.15(1)(i): • ⋅ • (a) if the place where the funds are made available is a factor in determining source under s.14; and (b) if under s.14 it is decided that the interest is not subject to Hong Kong tax Then the matter must be viewed again under s.15(1)(i) but this time the place where the funds were provided is to be disregarded as a factor in determining the source of the interest 775. an example for available for sale is reveres repo trading account asset negotiable certificate of deposit federal fund sold
- Bonds are issued at a premium by a capital projects fund. The premium should bea. retained in the capital projects fund.b. credited directly to the restricted fund balance of the capital projects fund.c. transferred to the debt service funds.d. used to reduce the net cost of the project involved.14. 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 initial valuation of the investment. 15. 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 interest income is to be recognized on December 31, 2020? 16. 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 is the interest receivable to be recognized on December 31, 2020?Which of the following costs may not be eligible for capitalization as borrowing costs under PAS 23? * Interest on bonds issued to finance the construction of a qualifying asset. Exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to interest costs pertaining to a qualifying asset. Amortization of discounts or premiums relating to borrowings that qualify for capitalization. Imputed cost of equity.
- 34. According to GAM for NGAs, interest revenue is recognized On a time proportion basis using effective interest method On a straight line basis In accordance with the substance of the relevant loan agreement When the entity’s right to receive payment is established.Evaluate the following statements:S1. Capitalization of borrowing cost is mandatory for a qualifying asset.S2. For general borrowing, the capitalizable borrowing cost is equal to the average expenditures of the asset during the period multiplied by the average interest rate. a. True, True b. True, False c. False, False d. False, TrueUse IFRS 9 to determine how to subsequently measure the following financial assets. Three choices of measurement basis are amortized cost, fair value through other comprehensive income, and fair value through profit or loss. Provide justification for your choice. Long-term loans that are held for collecting contractual cash flows till their maturities, but may be subsequently sold if the loans’ credit risk substantially increases. Investments in bonds that are held for collecting contractual cash flows, and may be subsequently sold to re-invest the cash in financial assets with a higher return. Subprime (high risk) mortgage loans that were originated by a mortgage-broker firm that always sell these loans to banks right after their origination. Forward contracts that an EU bank purchased to hedge the exposure to changes in fair value of US$-denominated loans. Investment in bonds that are convertible into common stock of the bond issuer. Investment in bonds that pay a variable market…