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  • CamScanner 02 26 2024 00.57

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    8 views9 pages

    CamScanner 02 26 2024 00.57

    Uploaded by

    Jane

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
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    eee ur wun 88S ANG ACCOUNLI ICY: First Semester 2023-2024 INTEGRATED ACCOUNTING THEORIES AND PRACTICE } Quiz on Financial Accounting and Reporting Investment in Debt and Equity Securities, Investment in Associates, Other Investments, and Derivatives and Hedge Accounting October 9, 2023 ] Investment in Debt and Equity Securities or loss even if the financial asset satisfies the 1, Under IFRS 9, which of the following is not a amortized cost measurement. category of financial assets? a. lonly a. Financial assets at fair value through profit or b. lonly toss Both | and ll b. Financial assets at fair value through other [Neither | nor I a 5. comprehensive income Financial assets at amortized cost Finarcial assets held for sale A financial asset is held for trading if (choose the incorrect one) a. Itis acquired principally for the purpose of selling or repurchasing it in the near term b._ On initial recognition, itis part of a portfolio of financial assets that are managed together and for which there is evidence of a recent actual pattern of short-term profit taking ¢._Itis derivative that is not designated as an effective hedging instrument It is a derivative that is designated as an effective hedging instrument ‘Transaction costs that are directly attributable to the acquisition of a financial asset shall be (2) Capitalized as cost of the financial asset Expensed when incurred c. Charged to retained earnings d. Included as a component of other comprehensive income ding on the business model for managing financial assets, an entity shall classify financial assets subsequent to initial recognition at a. Fair value b. Amortized cost Either fair value or amortized cost ‘Neither fair value nor amortized cost Which statement is true conceming subsequent measurement of financial asset at fair value? 1. The financial assets shall be measured at fair value if the business model is not to collect contractual cash flows on specified dates and the contractual cash flows are not solely payments of principal and interest. ll. Anentity may irrevocably designate a financial asset as measured at fair value through profit iat is the best evidence of fair value of a financ instrument? a. Its cost, including transaction costs directly attributable to the purchase origination or issuance of the financial instrument. b. Its estimated value determined using discounted cash flow technique, option prici ‘model or other valuation technique. © quoted price, if an active market exists for the financial instrument. — 2 d. The present value of the contractual cash flows less impairment. Which of the following is true for measuring an asset at fair value? a. The price of the asset should be adjusted for transaction cost. b. The fair value of the asset should be adjustec for cost to sell. The fair value is based upon an entry price t Purchase the asset. @yre price should be adjusted for transportat cost to transport the asset to its principal market. ie contractual agreement between the investor and the bond issuer is contained in the formal document known as a. Contract of debt Bond indenture ©. Bond certificate d._ Bond agreement fa 5-year bond matures on October 1, 2021 and Interest is payable semiannually, the interest date } April 1 and October 1 b. January 1 and July 1 May 1 and November 1 d. Not determinable Rana 4 af Scanned with CamScanner i iy The interest rate written on the face ofthe bond is sown as 2, Nomina rate (@ Coupon rate Stated rato @ Alot above \ coll ata discount when 6 wiling to invest in the bonds at intrest rate. ving to invest in the bonds at 12 sre lower than stated interest rate. iro witing to invest in the bonds only at rates that are higher than the stated interest rate, . Anunroslized gain is expected eflocvo rtrst toon tons is ower than | “the stated rate when bonds sell a. Arata vate @ Aoow taco vabo

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