IFRS 9 Financial Instruments Quiz
األدوات المالية.
Question 1 of 7
Which of the following are exceptions for IFRS 9 application?
a) Contracts to buy or sell a non-financial item that can be settled net in cash or another
financial instrument as if the contracts were financial instruments
b) Derivatives that are embedded in leases
c) Contracts that were entered into and continue to be held for the purpose of the receipt
or delivery of a non-financial item in accordance with the entity’s expected purchase, sale or
usage requirements
d) A and B
e) All of the above
Correct
Question 2 of 7
Which of the following loan commitments are within the scope of IFRS 9?
a) Loan commitments that the entity designates as financial liabilities at fair value
through profit or loss
b) Loan commitments that can be settled net in cash or by delivering or issuing another
financial instrument
c) Commitments to provide a loan at a below-market interest rate
d) All of the above
Correct
Question 3 of 7
An entity shall recognize a financial asset or a financial liability in its statement of financial
position when, and only when, the entity becomes party to the contractual provisions of the
instrument
True
IFRS 9 Financial Instruments Quiz
األدوات المالية.
False
Correct
Question 4 of 7
The hedging instrument is a forward contract to buy £1,000,000 GBP, spot rate at inception
is €1.50 for £1, forward rate is €1.70 for £1, spot rate at maturity is €1.65 for £1, start date is
1 September 2016, and maturity date is 31 August 2017. Find the amount of the hedging
instrument (use discounting factor of 1 in your calculations)
€50,000
€100,000
€150,000
€200,000
Correct
Solution: €1,650,000 – €1,500,000
Question 5 of 7
Which of the following conditions give rise to derecognition of a part of an asset under IFRS
9?
a) The part considered for derecognition comprises only a fully proportionate share of
specifically identified cash flows from a financial asset (or a group of similar financial assets)
b) The part considered for derecognition comprises only specifically identified cash
flows from a financial asset
c) The part considered for derecognition comprises only a fully proportionate share of
the cash flows from a financial asset (or a group of similar financial assets)
IFRS 9 Financial Instruments Quiz
األدوات المالية.
d) All of the above
e) None of the above
Correct
Question 6 of 7
The objective of hedge accounting is to represent, in the financial statements, the effect of
an entity’s ________________ that use financial instruments to manage ________________
arising from particular risks that could affect profit or loss
a) Risk management activities; exposures
b) Risk mitigation activities; credit losses
c) Risk diversification activities; credit concentration
d) Risk mitigation activities; credit exposures
Correct
Question 7 of 7
Which of the following cannot be a hedged item?
a) Recognized asset
b) Recognized liability
IFRS 9 Financial Instruments Quiz
األدوات المالية.
c) Forecast transaction
d) Net investment in a foreign operation
e) Unrecognized firm commitment
f) All of the above
g) None of the above
Correct
