PFRS 9 permits an entityto make an irrevocable election to present in other comprehensive income changes in the fair value of an investment in an equity instrument. Amounts presented in other comprehensive income 1. May be subsequently transferred to profit or loss 2. Shall be subsequently transferred to retained earnings
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: Which of the following is not an argument for the relevance of dividends? a. Existence of…
A: 1.not an argument for the relevance of dividends Protection against dilution
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: PFRS 9 permits an entity to make an irrevocable election to present in other comprehensive income…
A: Option (a) i.e. neither 1 nor 2, is the correct answer. Explanation is given in next step.
Q: an initial recognition an entity may make an irrevocable election to present in other comprehensive…
A: According to the accounting stantdard if an entity makes an investment and shows it in in other…
Q: 1. Trade payables and other liabilities that are part of an entity's working capital may be…
A: Since there are multiple questions, we will answer only first question. If you want remaining…
Q: Under Application Guidance 36 of IAS 32, an entity’s own equity instruments also known as treasury…
A: IAS 32 is providing guidance on classification of financial instruments as financial liabilities and…
Q: 25. The other comprehensive income section shall present line items for amounts of other…
A: Other comprehensive income is the bottom part of the income statement where all unrealised gain or…
Q: The fair value method of accounting for stock
A: As per IFRS 9 , Equity investments should be measured through fair value through profit and loss…
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: PFRS 9 permits an entity to make an irrevocable election to present in other comprehensive income…
A: As per PFRS 9, Amounts presented in other comprehensive income shall not be subsequently transferred…
Q: 1. Which of the following may be measured subsequently at amortized cost? a. None of these b. A…
A: solution note: dear student as per the bartleby guideline we are required to solve the first…
Q: PFRS 9 permits an entity to make an irrevocable election to present in other comprehensive income…
A: PFRS 9 is a financial reporting standard that is related with the financial instruments. Financial…
Q: . PAS 28 defines an ‘associate’ as Choices An entity that controls one or more entities. An…
A: Solution 1: PAS 28 defines an ‘associate’ as "An entity over which the investor has significant…
Q: Appropriations of retained earnings are proper a. When required by contractual agreements b. All…
A: solution Appropriations of retained earnings are proper Correct answer is option c. When BOD…
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: St: A property acquired by issuing equity shares should be recorded at fair value of the asset…
A: S1: A property acquired by issuing equity shares should be recorded at the fair value of assets…
Q: 17. Dividends are recognized in profit or loss only when: a. The amount of the divident can be…
A: Dividend means the amount given to shareholder of the company as profit distribution by company.
Q: 30. The following statements are incorrect, except: a. Issued instruments are classified as…
A: Incorrect Statements that have been correct as below. a. Issued instruments are classified as…
Q: Question 18 At initial recognition, an entity may make an irrevocable election to present in other…
A: Question 18 At initial recognition, an entity may make an irrevocable election to present in other…
Q: Which of the following statements is true about conting consideration under the revised PFRS 3? O…
A: Contingent consideration is defined as the obligation or liability of the buyer or acquirer to…
Q: Which of the following statements is incorrect regarding provisions of PAS 1? a. An entity is…
A: The question is multiple choice question Required Choose the Correct Option.
Q: Taxable income of a corporation:
A: Taxable income of a corporation is the income earned on which the corporate taxes would be levied.…
Q: For which type of investments would unrealized holding gain or loss be recorded directly in an…
A: At times, the company realizes some increase in the value of the assets that are not yet sold. Such…
Q: PFRS 9 permits an entity to make an irrevocable election to present in other comprehensive income…
A: Option (a) i.e. neither 1 nor 2, is the correct answer. Explanation is given in the next step.
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: PFRS 9 permits an entity to make an irrevocable election to present in other comprehensive income…
A: Solution: As per PFRS, Amounts presented in other comprehensive income shall not be subsequently…
Q: Dividends are recognized in profit or loss only when: Group of answer choices: The entity’s right…
A: Solution: Dividends are recognized in profit or loss only when: 1. The entity’s right to receive…
Q: PFRS 9 permits an entity to make an irrevocable election to present in other comprehensive income…
A: Changes in fair value are generally recognized in profit or loss, but in some cases they are…
Q: S1 Bond investments classified and accounted for as financial asset at amortized cost are recognized…
A:
Q: 2. Which of the following is not included in comprehensive income? a. gains on reissuance of…
A: Comprehensive income: It includes all the changes in company's equity during a specified period…
Q: Gem Company classifies a portion of its retained earnings as appropriated for loss contingencies.…
A: Retained earning is the earning accumulated over a period of time. It is used for various purposes…
Q: between the fair value of the investment in Set and the book value of the interest to identifiable…
A: schedule to allocate the difference between the fair value of an investment inset and the book…
Q: Which statement is true in relation to business combination achieved in stages? a. The pre-existing…
A: A business combination achieved in stages is called as a step acquisition
Q: Statement 1: If the financial asset is measured at fair value through profit or loss, transaction…
A: Lets understand the basics. Financial asset can be recognized in the books of accounts in the three…
Q: NSWER 1 AND 2 TY 1. At initial recognition, an entity may make an irrevocable election to…
A: ANSWER 1 : Explanation : If an equity investment not held for the trading, an entity can make an…
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: 3. An appropriation of accumulated profits for possible contingencies should be a. Charged with…
A: Stockholder's Equity - Stockholder's Equity includes the amount contributed by shareholders issued…
Q: 8. Income is: a. An amount for payment of services, interest, or profit from investment b. The…
A: Income is the excess of revenue over expenditures.
Q: When a public shareholding company changes an accounting policy voluntarily, it has to (a) Inform…
A: A public shareholding company can change its accounting policy voluntarily to provide more relevant…
Q: TRUE OR FALSE 1. The application of PFRSs, with additional discostire when necessary, is presumed to…
A: PFRS stands for Philippine Financial Reporting Standards. The objectives of PFRSs are to ensure…
Q: If an entity prepares restated financial statements in accordance with the requirements of IAS29,…
A: Financial statements refer to the recording of the business activities in written form and…
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: According to IFRS, which accounting policy may an entity apply to measure investment property in…
A: Investment property means any land or building which is neither held for sale nor for the purpose of…
Q: When the entity uses the IFRS for SMEs, investments in jointly controlled entities must be tested…
A: IFRS for SMEs states the self contained global accounting as well as financial reporting standards…
Q: Statement 1: Appropriation for retained earnings do not change both on the total amount of…
A: The question is related to Retained Earnings. The Retained earnings are part of Shareholder's funds…
PFRS 9 permits an entityto make an irrevocable election to present in other comprehensive income changes in the fair value of an investment in an equity instrument. Amounts presented in other comprehensive income
1. May be subsequently transferred to profit or loss
2. Shall be subsequently transferred to
a) Neither 1 nor 2
b) either 1 or 2
c) 1 only
d) 2 only
Step by step
Solved in 2 steps
- PFRS 9 permits an entity to make an irrevocable election to present in other comprehensive income changes in the fair value of an investment in an equity instrument. Amounts presented in other comprehensive income May be subsequently transferred to profit or loss. Shall be subsequently transferred to retained earnings. a. Neither 1 nor 2 b. 1 only c. Either 1 or 2 d. 2 onlyPFRS 9 permits an entity to make an irrevocable election to present in other comprehensive income changes in the fair value of an investment in an equity instrument. Amounts presented in other comprehensive income 1. May be subsequently transferred to profit or loss. 2. Shall be subsequently transferred to retained earnings. Neither 1 nor 2 2 only Either 1 or 2 1 onlyPFRS 9 permits an entity to make an irrevocable election to present in other comprehensive income changes in the fair value of an investment in an equity instrument. Amounts presented in othercomprehensive income1. May be subsequentlv transferred to profit or loss.2. Shall be subsequently transferred to retained earnings. a. Neither 1 nor 2 b. Either 1 or 2 c. 1 only d. 2 only
- 4. Which of the following is not a component of other comprehensive income?a. Unrealized gain on equity investment measured at fair value through other comprehensive incomeb. Revaluation lossc. Unrealized gain from derivative contracts designated as cash flow hedged. Loss from translation of the financial statements of a domestic operation 5. Which of the following is a component of other comprehensive income?a. Unrealized loss from derivative contracts designated as fair value hedge.b. Unrealized loss on debt investment measured at fair value through other comprehensive incomec. Gain from translation of the financial statement of a domestic operation.d. Remeasurements of defined obligation plan, including accrual gain 6. Statement of comprehensive income can be presented asa. Two statements or single statement of comprehensive incomeb. Single statement of comprehensive income onlyc. Two statement of income statement or statement of comprehensive income onlyd. Statement of…37. When an entity reduces its interest in an investment in equity securities accounted for by the equity method and changes in to the fair value method. What is the initial measurement of the investment for purposes of subsequent changes in market value? a. Carrying amount at the date of changea. Original costb. Market value at the date of changec. Market value at the date of acquisition1 Unrealized holding gain/loss which are taken to profit or loss are from securities that are classified as a. held to maturity b. investment in associate c. equity investment at fair value through profit or loss d. equity investment at fair value through other comprehensive income
- 1. PAS 28 defines an ‘associate’ as Choices An entity that controls one or more entities. An entity over which the investor has significant influence. A joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement. An entity that is controlled by another entity. 2. In accordance with PAS 1, which of the following gains or losses from reclassification of financial assets need not be presented separately in the profit or loss section or the statement of profit or loss? Choices None of these. Reclassification of financial assets out of the FVTOCI measurement category to FVTPL. Reclassification of financial assets out of the amortized cost measurement category to FVTPL. Reclassification of financial assets out of the FVTPL measurement category.17. When a debt investment at FVOCI is reclassified to FVPL, an entity willa. Remeasure the investment to the original cost and eliminate the cumulative unrealized gain or loss in OCI.b. Transfer the cumulative unrealized gain or loss to retained earningsc. The cumulative gain or loss previously recognized in OCI is reclassified to profit or loss.d. The effective rate at the date of reclassification shall be the basis for interest income to be recognized in subsequent periods.TRUE OR FALSE 1. PFRS 4 SUPERSEDES PFRS17 2.PFRS 17 APPLIES TO REINSURANCE CONTRACTS3.INCOME SERVICE IS RECOGNIZED IN OTHER COMPREHENSIVE INCOME4. PFRS17 APPLIES TO INVESTMENT CONTRACTS WITH DISCRETIONARY FEATURES REGARDLESS IF THE ENTITY ALSO ISSUES INSRANCE CONRACS OR NI
- 30. The following statements are incorrect, except: a. Issued instruments are classified as liabilities or equity in accordance with the legal form of the contractual arrangement and the definitions of the financial liability and an equity instrument. b. A preference share that will be redeemed by the issuer for cash on a future date is a financial liability. c. IAS 37 prescribes the accounting and disclosure for all provisions, contingent liabilities and contingent assets, and those resulting from financial instruments that are carried at fair value. d. Issued instruments are classified as liabilities or equity in accordance with the management’s designation of the contractual arrangement.Question 18 At initial recognition, an entity may make an irrevocable election to present in other comprehensive income subsequent changes in the fair value of an investment in an equity instrument that is Group of answer choices Acquired principally for the purpose of selling it in the near term. A derivative. None of these. On initial recognition is part of a portfolio of identified financial instruments that are managed together and for which there is evidence of a recent actual pattern of short-term profit-taking.ANSWER 1 AND 2 TY 1. At initial recognition, an entity may make an irrevocable election to present in other comprehensive income subsequent changes in the fair value of an investment in an equity instrument that is Choices A derivative. None of the choices. On initial recognition is part of a portfolio of identified financial instruments that are managed together and for which there is evidence of a recent actual pattern of short-term profit-taking. Acquired principally for the purpose of selling it in the near term. 2. PFRS 9 permits an entity to make an irrevocable election to present in other comprehensive income changes in the fair value of an investment in an equity instrument. Amounts presented in other comprehensive income I. May be subsequently transferred to profit or loss. II. Shall be subsequently transferred to retained earnings. Choices Neither I nor II. II only. Either I or II. I only.