All of the following are true of the effect of fair value accounting on the financial statements except: a. any difference between the original cost or the prior period’s fair value must be recorded b. changes in the fair value of trading securities are recognized on the income statement c. valuation allowance accounts are reported on the balance sheet d. changes in the fair value of available-for-sale securities are recognized on the income statement

Q: Under IFRS, a company: a. should evaluate only equity investments for ­impairment. b. accounts for…

A: Option C is correct.

Q: Which of the following statements is TRUE? a. The acquirer shall measure the identifiable assets…

A: Answer:- a True Explanation:- The statement is true the acquirer must value the identifiable assets…

Q: What is the date on which the fair value of the equity instrument granted is measured?      a.…

A: Solution: For transactions measured at the fair value of the equity instruments granted, fair value…

Q: an investment in equity instrument may not be classified as a financial asset subsequently measured…

A: Solution: An investment in equity instrument may not be classified as a financial asset subsequently…

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: Impairments of debt investments at amortized cost are

A: Impairment: Impairment is the decrease in the value of a fixed asset other than depreciation. In…

Q: Investments in equity securities for which the investor has insignificant influence over the…

A: Fair value: Fair value is the price at which, both seller and buyer agree to exchange the asset. So,…

Q: Assume that Lehman’s accounting for the Repo 105 transactions met the requirements of GAAP. However,…

A:

Q: All of the following statements are true regarding available-for-sale securities except   a.changes…

A: The financial instruments that are tradable and can be used to raise capital in private and public…

Q: Which of the following reclassifications of financial assets is permitted under PFRS 9? a.…

A: Solution As per IFRS 9 , reclassification is allowed only when an entity changes its business model…

Q: what is the difference between marketable equity securities held as financial asset at fair value…

A: Financial assets are the intangible assets, which are used as investment asset by the investors.…

Q: Unrealized holding gain/loss which are taken to profit or loss are from securities that are…

A: Answer:-  Unrealized gain meaning:- A notional profit that exists on paper as a consequence of an…

Q: . Which of the following statements is true? a.    The fair value option requires that some types of…

A: The fair value option allows, but does not require, that some types of financial instruments be…

Q: For each of the financial instruments below, match them to the appropriate accounting treatment.…

A: We have the following question:

Q: Which of the following statements concerning the different types of hedging transactions is…

A: The Correct Answer is Option "C"  i.e. In hedging transaction which is undesignated, unrealized…

Q: At each reporting date, companies adjust debt investments which fails in cash flows test to fair…

A: The question is related to the IFRS 9 Financial Instruments.

Q: Which of the following shall be taken to profit or loss for investments measured at fair value…

A: Other Comprehensive Income - This statement includes all the income which is not earned yet by the…

Q: Which of the following is measured at fair value with fair value changes recognized in profit or…

A: Explanation: Held to maturity investments: Investments that are held to maturity are classified at…

Q: Which statement is incorrect regarding reclassification of financial assets? All…

A: Reclassification of Financial Assets : (1) The Reclassification of the financial assets are…

Q: Which of the following is correct about subsequent measurement of financial asset at fair value? a.…

A: Fair value through other comprehensive income-financial assets are classified and measured at fair…

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: Under PAS 1, which of the followingitem is not included in the computation of profit?     Finance…

A: PAS 1 :           It is an accounting standard under Philippines Accounting Standards, the standard…

Q: Which of the following statements about the IASB and FASB conceptual frameworks is not correct? a.…

A: The FASB and IASB have the goal of establishing the accounting standards. FASB focuses on accounting…

Q: Investments in equity securities for which the investor has insignificant influence over the…

A: In layman’s words, financial management is the management of the finance or funds in an…

Q: which statements is incorrect regarding for value measurements? a. fair value is normally the…

A: Fair value is the price that would be received to sell the asset or paid to transfer the liability…

Q: Which of the following statements is/are true about contingent consideration under the revised PFRS…

A: solution concept as pe the provision of PFRS 3 business combinations contingent consideration can be…

Q: All of the following are key similarities between GAAP and IFRS with respect to accounting for…

A: International Financial Reporting Standards (IFRS):  International Financial Reporting Standards is…

Q: Which of the following is correct regarding the classification of investment in debt instruments as…

A: Option (b) is correct. Explanation is given in next step.

Q: When holding available-for-sale securities, a company should disclose for each income statement…

A: It is investment in debt or equity but it intent to sale before its maturity.

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…

Q: Investments in equity securities are adjusted to fair value at the end of the period. This…

A: As per the guidelines, only one question is allowed to be solved. Please resubmit the question…

Q: Under IFRS 2, Share-Based Payment, the value of the options that lapse after vesting shall  be…

A: IFRS 2, Share-Based Payments provides guidance on accounting for the share option granted. The…

Q: Discuss the arguments for each position. Some individuals maintain that the only proper accounting…

A: The argument for this statement is this that whether to use current value or not is totally depends…

Q: Does GAAP distinguish between fair values that are readily determinable from a securities exchange…

A: GAAP refers to the accounting principles & rules which are followed by the companies for…

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 on a contractual right or ownership…

Q: Under the fair value option for debt investment, entities report all changes in fair value in…

A: Lets understand the basics. Fair value option means a option in which change in fair value in debt…

Q: Which statement is incorrect regarding reclassification of financial assets? a) Reclassifications…

A: As per IFRS a) Reclassifications to FVTPL measurement category result to amounts recognized in…

Q: Under IFRS 9, the cumulative balance of equity as a result of measuring the equity investment at…

A: As per IFRS 9, Financial instruments, The unrealized gain on changes in fair value of the financial…

Q: Is unrealized loss deducted in marketable equity securities held as financial asset at fair value…

A: Yes ,unrealized loss reported  as component of other comprehensive income and marketable equity…

Q: Which of the following statement/s are correct? (a) According to fair value measurement, assets are…

A: Fair value refers to the current worth or the amount at which the assets are sold in the market or…

Q: If an entity has elected to use the fair value option for a financial liability; a. It is measured…

A: Liabilities: Liabilities are the obligations of an organization that an organization must pay in…

Q: When a debt investment at amortized cost is reclassified to FVPL, the difference between the…

A: Debt investments are also known as fixed-income investments in which an investor lends his money to…

Q: Which statement is true when a debt investment at amortized cost is reclassified to FVOCI?   a.…

A: Under the International Financial Reporting Standard (IFRS) 9, reclassification of the financial…

Q: Any unrealized gains or losses are reported in the regular income statement for a) Trading…

A: Introduction:- The accounting treatment is based on the type of securities. These are are classified…

Q: Explain the fair value adjustment procedure for short-terminvestments classified as…

A: Answer: 4154-7-8DQ AID: 649 RID: 640 Short term investments are adjusted to their market value at…

Q: What are some steps taken by both the FASB and IASB to move to fair value measurement for financial…

A: International Financial Reporting Standards: IFRS (International Financial Reporting Standards) is a…