15 All financial assets are initially measured at fair value plus transaction costs, except Group of answer choices Fair value through OCI Fair value through profit and loss Amortized cost None of these
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15
All financial assets are initially measured at fair value plus transaction costs, except
Group of answer choices
Fair value through OCI
Fair value through
Amortized cost
None of these
Step by step
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- All financial assets are initially measured at fair value plus transaction costs, except A. Amortized cost C.None of these C. Fair value through profit and loss D. Fair value through OCI15. An investment in equity instrument may not be classified as a financial asset subsequently measured at Group of answer choices Amortized cost None of these Fair value through other comprehensive income Fair value through profit or loss11. The valuation of assets in the balance sheet is based primarily upon: What it would cost to replace the assets. Cost, because cost is usually factual and verifiable. Current fair market value as established by independent appraisers. Cost, because in the event of liquidation, the assets would be sold at an amount equal to their original cost. 12. Which one of the following equations correctly expresses the relationship between assets (A), liabilities (L), revenues (R), expenses (E) and capital (C)? (a) A = L + R + E + C (b) A = C + L + (R-E) (c) A = C - (R - E) + L (d) A = (L - C) + (R - E) 13. Which of the following would be added to net income using the indirect method? An increase in accounts receivable An increase in prepaid expenses Depreciation expense A decrease in accounts payable 14. Unpaid expenses may be included as an expense on the income statement. True False…
- 14-The amount for which an asset could be exchanged, a liability settled , or an equity instrument could be exchanged between knowledgeable parties is referred to as a. Historical cost principle b. Futuristic cost principle c. Replacement cost Principle d. Fair value cost principle17 The accounting book value of an asset represents the historical cost of the asset rather than its current market value or replacement cost. Select one: True FalseUse U.S. GAAP to determine how to subsequently measure the ten financial assets in requirement 1. Three choices of measurement basis are amortized cost, fair value through other comprehensive income, and fair value through profit or loss. Feel free to make an assumption and be sure to provide justification for your answer.
- 20. For an SME, changes in the fair value less costs to sell of biological assets are a. recognized in profit or loss b. recognized in other comprehensive income c. not recognized d. a or b13 Under what circumstances under PFRS 9 can an entity classify financial assets that meet the amortized cost criteria as at FVTPL? Group of answer choices Where the instrument is held to maturity. Where the business model approach is adopted. Where the financial asset passes the contractual cash flow characteristics test. Not sure If doing so eliminates or reduces an accounting mismatch.14 The entry to record transaction costs for financial assets measured at fair value through surplus or deficit would include a debit to _________
- 15- What is the sacrifice, depletion of assets or expenditure made to generate income called? a) Spending B) Cost NS) Income D) Expense TO) Cost1. IAS 36 applies to which of the following assets? (a) Inventories. (b) Financial assets. (c) Assets held for sale. (d) Property, plant, and equipment. 2. Value-in-use is (a) The market value. (b) The discounted present value of future cash flows arising from use of the asset and from its disposal. (c) The higher of an asset’s fair value less cost to sell and its market value. (d) The amount at which the asset is recognized in the balance sheet. 3. If the fair value less costs to sell cannot be determined (a) The asset is not impaired. (b) The recoverable amount is the value-in-use. (c) The net realizable value is used. (d) The carrying value of the asset remains the same. 4. If assets are to be disposed of (a) The recoverable amount is the fair value less costs to sell. (b) The recoverable amount is the value-in-use. (c) The asset is not impaired. (d) The recoverable amount is the carrying value. 5. Estimates of future cash flows normally would cover projections over a maximum…According to PFRS 5, Assets held for sale are measured at a. fair value b. fair value less cost to sell c. carrying amount d. lower of b and c