receivables not measured initially at their transaction price are measured initially at a. fair value plus transaction costs that are directly attributable to the acquisition of the financial asset b. fair value c. fair value minus transaction costs that are directly attributable to the acquisition of the financial asset d. fair value less costs to sell
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receivables not measured initially at their transaction price are measured initially at
a. fair value plus transaction costs that are directly attributable to the acquisition of the financial asset
b. fair value
c. fair value minus transaction costs that are directly attributable to the acquisition of the financial asset
d. fair value less costs to sell
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- Which of the following statements about capitalizing costs is correct? A. Capitalizing costs refers to the process of converting assets to expenses. B. Only the purchase price of the asset is capitalized. C. Capitalizing a cost means to record it as an asset. D. Capitalizing costs results in an immediate decrease in net income.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 OCIWhich of the following is correct about subsequent measurement of financial asset at fair value? a. the financial asset shall be measured at fair value if the business model is not to collect contractual cash flows on specified dates and the contractual cash flow ae not solely payment of principal and interest. b. An entity may designate a finacncial asset as measured at fair value through profit or loss even if the financial asset satisfies the amortized cost measurement. c. both are correct d. both are incorrect
- Where non-current assets are held for sale, they are required to be measured using: the equity method; the lower of carrying amounts and fair values less costs to sell; the lower of cost or market value; fair value.Which of the following types of interest cost incurred in connection with the purchase or manufacture of inventory should be capitalized as a product cost? A. Purchase discounts lost B. Interest incurred during the production of discrete projects such as ships or real estate projects C. Interest incurred on notes payable to vendors for routine purchases made on a repetitive basis D. All of these should be capitalized.Which of the following is not a difference between U.S. GAAP and IFRS treatment of impaired assets? Multiple Choice The use of discounted cash flow. Due to differences, U.S. GAAP may trigger an impairment loss that would not be triggered by IFRS. The right to reverse prior impairment losses when there is a change in the estimates used to measure the loss. In determining the valuation, costs to sell are deducted from fair value.
- Which of the following observations refers to the term differential? Select one: a. Excess of investment amount over fair value of net assets b. Excess of Investment amount over book value net assets c. Excess of fair value over book value of net assets d. Excess of fair value over historical cost of assetsimpairments on financial instruments are ? A) recognized as a realized loss if the impairment is judged to be temporary B) based on discounted cash flows for securities C) based on fair value for available-for-sale investments and negotiated values for hel-to-maturity investments D) evaluated using the CECL model similiar to receivablesIn current purchasing power technique (a) Why is it necessary to consider monetary assetsseparately from nonmonetary assets? Analyze withexamples. (b) Why does holding monetary assets lead to apurchasing power loss, but holding nonmonetary assetsdoes not lead to a purchasing power loss? Analyze withexamples
- Under PAS 1, which of the followingitem is not included in the computation of profit? Finance cost. Post-tax gain or loss on discounted operations. Unrealized gain in change in value of biological assets. Unrealized gain in change in value of available-for-sale securities.When applying the equity method, how is the excess of cost over book value accounted for? A) The excess is allocated to the difference between fair value and book value multiplied by the percent of ownership of current assets.B) The excess is allocated to the difference between fair value and book value multiplied by the percent ownership of total assets.C) The excess is allocated to the difference between fair value and book value multiplied by the percent ownership of net assets.D) The excess is allocated to goodwill.E) The excess is ignored.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