q17) Under the current capital requirements in Basel agreement, assets in Category 4, 4 such as private loans, have an effective total capital-to-total-assets ratio of a .1.6% b. 8.6% c. 4% d. 2% e. 8%
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q17) Under the current capital requirements in Basel agreement, assets in Category 4, 4
such as private loans, have an effective total capital-to-total-assets ratio of
a .1.6%
b. 8.6%
c. 4%
d. 2%
e. 8%
Step by step
Solved in 2 steps
- 1. PAS 23 does not require which of the following disclosures? * A. The capitalization rate used to determine the capitalizable borrowing costs. B. PAS 23 requires the disclosure of all these information. C. The amount of borrowing costs capitalized during the period. D. Separate presentation of qualifying assets from other assets either on the face of the statement of financial position or in the notes. 2. How much is the cost of the qualifying asset on initial recognition? * A. 15,045,000 B. 13,010,000 C. 14,970,900 D. 14,920,000 3. According to PAS 23, borrowing costs are capitalized when * A. They relate directly to the acquisition, construction, or production of a qualifying asset. B. The entity chooses to capitalize them C. They are material and are expected to be incurred over more than one reporting period. D. All of the options22 - To which account does an enterprise adopting the 7 / A option debt its interest, exchange differences, commission and similar expenses related to the borrowed amounts in order to carry out its activities without interruption?A) 770 General Administrative ExpensesB) 689 Other Extraordinary Expenses and LossesC) 780 Financial ExpensesD) 797 Financial ExpensesE) 303 Principal Installments and Interest Rates of Long Term LoansE17.6 (LO1) (HFCS Debt Securities Entries and Financial Statement Presentation) At December 31, 2019, the held-for-collection and selling debt portfolio for Steffi Graf SA is as follows. Security Amortized Cost Fair Value Unrealized Gain (Loss) A €17,500 €15,000 (€2,500) B 12,500 14,000 1,500 C 23,000 25,500 2,500 Total €53,000 €54,500 1,500 Previous fair value adjustment balance-Dr. 400 Fair value adjustment-Dr. €1,100 On January 20, 2020, Steffi Graf SA sold security A for €15,100. The sale proceeds are net of brokerage fees. Instructions a. Prepare the adjusting entry at December 31, 2019, to report the portfolio at fair value. b. Show the statement of financial…
- Which of the following is not an alternative for a capital charge for Operational Risk as stated in Basel II? a. Advanced Measurement Approach (AMA) b. Asset-Liability Matching c. Basic Indicator (15% of annual gross income) d. Standardized (different percentage for each business line)How much should be recorded as the purchase price of theindividual PPE items: 4. Issued bonds with face value of P5,000,000 and fair value ofP5,100,000 to purchase equipment with a fair value ofP4,900,000.Operational risk is included in the regulatory capital requirement calculation of which of the following. a. Pilar 2 b. Basel II regulation c. Pilar 3 d. Basel III regulation
- 5. An entity had a note payable P5,000,000 due June 15, 2021. The entity signed an agreement on December 1, 2020 to borrow up to P5,000,000 to refinance the note payable on a long-term basis with no payments due until 2022. The financing agreement stipulated that borrowing may not exceed 80% of the value of the collateral. At the date of the issuance of 2020 financial statements, the value of the collateral was P6,000,000 and is not expected to fall below this amount. What amount of the note payable should be classified as noncurrent on December 31, 2020? a. 5,000,000 b. 4,800,000 c. 200,000 d. 0On January 1, 20x1, Entity A had the following general borrowings. A part of the proceeds was used to finance the construction of a qualifying asset as shown in the image. Construction was completed on December 31, 20x1. How much is the cost of the qualifying asset on initial recognition? Note: Answer should be numerical, do not put a comma or any symbol. Round to the nearest peso, no decimals (e.g. 123456)Operational risk is included in the regulatory capital requirement calculation of which of the following. a. Pilar 2 b. Basel III regulation c. Pilar 3 d. Basel II regulation Clear my choice
- q13 According to IFRS, which accounting policy may an entity apply to measure investment property in periods subsequent to initial recognition? Select one: a. Fair value model or revaluation model. b. Cost model or fair value model c. Fair value model only. d. Cost model or revaluation model.Carriageways Co had the following bank loans outstanding during the whole of 2023 which form the company’s general borrowings for the year: £m 9% loan repayable 20X9 15 11% loan repayable 20Y2 24 Carriageways Ltd began construction of a qualifying asset on 1 April 2023 and withdrew funds of £6 million on that date to fund the construction. On 1 August 2023 an additional £2 million was withdrawn for the same purpose. Calculate the borrowing costs which can be capitalised in respect of this project for the year ended 31 December 2023.Horizons plc had the following bank loans outstanding during the whole of 20X8 which form the company’s general borrowings for the year: £m 10% loan repayable 20X9 250 8% loan repayable 20Y2 750 Horizons plc began construction of a qualifying asset on 1 May 20X8 and withdrew funds of £45 million on that date to fund construction. On 1 September 20X8 an additional £60 million was withdrawn for the same purpose. Calculate the borrowing costs which can be capitalised in respect of this project for the year ended 31 December 20X8. Select one: a. £5,000,000 b. £4,250,000 c. £5,418,750 d. £850,000 e. £8,925,000 f. £3,056,250
