Investment in debt instruments classified as FA@FVTOCI recognizes which of the following in OCI? Group of answer choices Impairment gains and losses All of these Interest calculated using the effective interest method. Changes in fair value

Investment in debt instruments classified as FA@FVTOCI recognizes which of the following in OCI? Group of answer choices Impairment gains and losses All of these Interest calculated using the effective interest method. Changes in fair value

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 9GI

See similar textbooks

Related questions

Q: Interest income recognized for debt investments classified as fair value through other comprehensive…

A: Interest income recognized for debt investments classified as fair value through other comprehensive…

Q: Recording Entries for Impairment-AFS Determine the amount of impairment loss (if any) to record in…

A: Impairment loss is the amount which is calculated when the carrying or book values or the asset is…

Q: Which of the following financial assets are assessed for impairment? Equity investments at Fair…

A: The underlying premise of IAS 36 is that an asset should not be carried in the financial statements…

Q: Debt investments with an objective of collecting contractual cash flows is classified as: Group of…

A: Debt investments are those instruments which have a specified time period and interest is paid by…

Q: 11. Debt investments at fair value through other comprehensive income are initially measured at…

A: According to IFRS guidelines initial measurement of the Debt investment which can be either…

Q: 5. Which of the following incorrectly matches the classification of the debt investment with its…

A: The amortized cost means the accumulated portion of fixed asset expense or depreciation. One of the…

Q: Interest revenue for debt investments at fair value through other comprehensive income

A: IFRS 9 - Financial instruments deals with the calculation of interest income on debt investments.

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: When convertible debt is retired by the issuer, any material difference between the cash acquisition…

A: The convertible debts are those which can be converted into liquidity at any point of time. The…

Q: hich of the following is not one of the components of other comprehensive income? a. changes in…

A: Which of the following is not one of the components of other comprehensive income? a. changes…

Q: When a debt investment at FVOCI is reclassified to amortized cost, the entity will a. Remeasure the…

A: The financial asset is to be transferred at Fair value from FVTOCI to amortized cost.

Q: Which of the following statements is correct? a. IFRS permits the fair value option for the equity…

A: GAAP are the general accounting principles which are to be followed by the U.S companies in…

Q: 1. PAS 23 does not require which of the following disclosures? * A. The capitalization rate used to…

A: Hi student Since there are multiple questions, we will answer only first question.

Q: A gain or loss from debt restructuring should be * O treated as increase or decrease in Paid-in…

A: Earlier gain or loss from debt restructuring was transferred to capital reserve but now it is…

Q: Investment in debt instruments classified as FA@FVTOCI recognizes which of the following in OCI?…

A: Correct option: a. Changes in fair value in case of Investment classified as FA@FVTOCI, any change…

Q: Marketable securities are accounted for at their current fair value using mark-to-market accounting.…

A: Mark-to-Market accounting is an accounting practice that helps to adjust the value of an asset on…

Q: Which of the following is not a category of financial assets under GAM? Group of answer choices…

A: Financial Assets are to be classified in the following four categories: 1. Financial Assets at fair…

Q: Transaction costs are capitalized when acquiring investment in equity or debt securities, except…

A: Transaction costs are required costs incurred while sale or purchase of equity or debt security. In…

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: nvestment securities held for the purpose of retiring bonds should be classified on a balance sheet…

A: Investment securities are tradable financial assets such as shares or fixed income instruments that…

Q: Which of the following is not an alternative for a capital charge for Operational Risk as stated in…

A: Operational risk means the risk arriving during the human error or system error. It is not at all…

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: A gain arising from a change in the fair value of an investment property for which an entity has…

A: Introduction: Income statement: All revenues and expenses are shown in income statement. It tells…

Q: Fixed Assets Turnover Ratio

A: Fixed asset turnover ratio is helpful in computing the return on investment on assets like plant,…

Q: Which statement is incorrect regarding classification of financial assets? a. An entity can…

A: Financial Assets: The financial assets refers to contractual agreement between two parties for a…

Q: The following investments are provided to you: Asset 1: Debt investment measured at FVPL Asset 2:…

A: As per IFRS 9 "Financial Instruments" Financial Assets which are measured at Amortized Cost or…

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: Requirements: 1. Prepare the necessary journal entries to record the above transactions assuming the…

A: Bonds: Bonds are the instruments issued by the business entity to raise capital through debt source.…

Q: Q11 Which of the following options is INCORRECT regarding financial assets and the subsequent…

A: Introduction: Financial assets are liquid assets such as inventory equity or bank deposits that…

Q: Which of the following are reported at fair value? Debt investments. Equity investments. Both debt…

A: Debts investments are actually classified as available for sale and reported at fair value. Equity…

Q: nvestment in debt instruments classified as FA@FVTOCI recognizes which of the following in OCI? A.…

A: For debt instruments measured at FVOCI, only the changes in Fair value is recognised in OCI.…

Q: S1 Bond investments classified and accounted for as financial asset at amortized cost are recognized…

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: Debt investment are initially recorded at: Cost Cost plus accrued interest Fair value None of the…

A: Debt investment: Debt investment is investment in any firm or project in which you expect to receive…

Q: * An entity reclassifies debt securities from FVOCI to Amortized cost. On reclassification date, the…

A: When a business changes its business model then, the entity should reclassify all the impacted…

Q: Capital expenditure involves: Select one: O a. Exchange of current liabilities to acquisition of…

A: Assets can be divided into two parts fixed assets and current assets, fixed assets are the assets…

Q: 1. Assuming the investment is appropriately recognized as a financial asset intended to collect…

A: Financial assets are held for collecting contractual cash flows and selling of investment then the…

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: hich of the following assets are initially and subsequently measured at Fair Value? Biological…

A: As per the prevailing practices, generally all assets purchased are initially recognised at their…

Q: In investment in debt securities accounted for at fair value through other comprehensive income, the…

A: The income statement includes revenues and expenses for the company.

Q: I. The amount of borrowing costs that an entity capitalizes during a value, the carrying amount is…

A: As per IND AS 23, borrowing cost eligible for capitalization= Borrowing cost incurred- investment…

Q: Debt investments with an objective of collecting contractual cash flows is classified as: Group of…

A: Debt Investment: Investment in debt involves an investor providing money to a company or project…

Q: Which of the following would NOT be classified as a current asset on a classified balance sheet?…

A: Current assets are those assets which are in cash or can be converted into cash into short period of…

Q: 2. Which of the following correctly matches the classification of the debt investment with its…

A: IAS 32 and IAS 39, the previous IFRS financial instruments accounting standards, classified debt…

Question

Investment in debt instruments classified as FA@FVTOCI recognizes which of the following in OCI?

Group of answer choices

Impairment gains and losses

All of these

Interest calculated using the effective interest method.

Changes in fair value

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Investment in debt instruments classified asFA@FVTOCI recognizes which of the following in OCI? a) Changes in fair valueb) Impairment gains and lossesc) Interest calculated using the effective interestmethod.d) All of the above.
Investment in debt instruments classified as FA@FVTOCI recognizes which of the following in OCI? A. Interest calculated using the effective interest method. B. All of these. C. Changes in fair value D. Impairment gains and losses
Interest revenue for debt investments at fair value through other comprehensive income is computed based on the instruments’ a. face value using the effective interest rate. b. face value using the nominal interest rate. c. carrying amount using the effective interest rate. d. carrying amount using the nominal interest rate.
In investment in debt securities accounted for at fair value through other comprehensive income, the difference between the fair value and the accumulated unrealized gain or loss - OCI presented in the statement of financial position would normally equal to: * A. The unrealized gain or loss - OCI presented as part of other comprehensive income B. The amortized cost of the debt securities C. The interest income for the period D. The fair value of the debt securities in the previous period
An unrealized holding gain or loss on a trading debt investment is the difference between the investments Select one: a. fair value and original cost. b. fair value and amortized cost. c. face value and amortized cost. d. face value and original cost.
Indicate how unrealized holding gains and losses shouldbe reported for debt investments classified as trading,available-for-sale, and held-to-maturity.
20. Investment in debt instruments classified as FA@FVTOCI recognizes which of the following in OCI? Group of answer choices Changes in fair value Impairment gains and losses Interest calculated using the effective interest method. All of these
For which of the following securities will unrealized holding gains or losses be recorded as other comprehensive income? Enter 1, 2, 3, or 4 that represents the correct answer. Debt investments, trading. Debt investments, held-to-maturity. Equity investments, trading. Equity investments, available-for-sale.
Which of the following is not a category of financial assets under GAM? Group of answer choices A.Held to maturity investments B.Available for sale financial assets C.Financial asset at fair value through other comprehensive income D.Loans and receivable
For investment in equity securities carried as FVOCI under PFRS 9, the difference between the carrying value of the investment and its related cumulative unrealized gain or loss-OCI is * A. its unrealized gain or loss reported as a component of OCI for the period B. Its amortized cost C. its initial cost D. its unrealized gain or loss reported under profit or loss for the period A gain or loss arising on the initial recognition of biological assets and from a change in the fair value less costs to sell of a biological asset shall be included in: * A. Profit or loss for the period B. Other comprehensive income C. A separate revaluation reserve D. Either in the profit or loss or the other comprehensive income for the period The following items are generally classified as plant assets, except: a. Improvements to leased facilities b. Property held for future plant sites c.…