When the required balance of the loss allowance decreases, a. the entity recognizes gain. b. the entity recognizes loss. c. the entity recognizes unearned interest to be amortized over the remaining term of the instrument. d. the entity recognizes a deferred charge to be amortized over the remaining term of the instrument.

Q: Entity A issues an instrument that is re-purchasable by delivering cash or another financial asset.…

A: Answer (4). Option A is the correct answer.

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: Statement I: In cases wherein the net free assets are greater than the unsecured claims, the…

A: Liquidation means where the company decide to close out the operations , sell all the assets and…

Q: For each class of provision, an entity shall disclose except * O unused amounts reversed during the…

A: For each class of provision, an entity shall disclose the following :- Unused amounts reversed…

Q: An entity shall disclose the contractual amount outstanding on financial assets that were written…

A: These given statement is False... An entity shall disclose the contractual amount outstanding on…

Q: Which of the following events could not coincide with the recognition of an expense? O The…

A: Expenses means the amount spent on running the business. Expense will decrease our profits and shown…

Q: If the acquirer's interest in the net fair value of the identifiable asset liabilities exceeds the…

A: In extremely rare circumstances, an acquirer will make a bargain purchase in a business combination…

Q: f the Construction in Progress account is greater than the Contract Billings, the excess is treated…

A: Construction in progress means the contracts' work which still going on and is yet to be completed.

Q: Under the corridor​ approach, a company only amortizes the net accumulated unamortized actuarial…

A: Introduction Corridor approach is a techniques used to reduce the amount of gain or losses, it…

Q: In an equity-settled transaction, if the total compensation changes in the subsequent period, the…

A: Under share based payment, if during subsequent period, total compensation changes then that change…

Q: A currently maturing obligation of the entity is classified on the SFP as a?

A: Here SFP stands for statement of financial position. In a SFP different assets and liabilities are…

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: Discuss the appropriate treatment in the income statement for the following items: a.    Loss on…

A: Income statement:   In this statement, the financial records of the company's monetary performance…

Q: text __________________is the residual interest in the assets of the entity after deducting all of…

A: Assets of the business composed of two components, one is related to liabilities part and other is…

Q: In a business combination in which the total fair value of the identifiable assets acquired over…

A: As per IFRS 3  Business combination  The core Principles of business combination states that When…

Q: 1. According to PAS 1, a currently maturing debt that the entity's management intends to refinance…

A: solution note Dear student as per the Q&A guideline we are required to answer the first question…

Q: Under PFRS 9, a financial asset shall be measured subsequently at amortized cost when: I. The…

A: Financial Assets shall be subsequently measured at amortized cost, when The Business Model is to…

Q: Which is the proper way to report a contingent asset? a. As an asset b. No disclosure and no accrua…

A: As per IAS 37, Provisions, contingent liabilities and contingent assets. A contingent asset arise…

Q: When an investment ceases to be an associate, the fair value of the investment at the date when it…

A: Investment is the amount saved by the investor in order to earn regular income as well as get the…

Q: Under PFRS 15, which of the following factors indicates that the revenue from contracts with…

A: Under IFRS 15  A performance obligation is on the seller or service provider who has an obligation…

Q: In the final settlement, of the contingent consideration, which of the following statements is…

A: I. If the contingent consideration is classified as equity, the amount shall be measured upon…

Q: What is the principle for recognition of a financial asset in PFRS 9? A. A financial asset is…

A: Financial asset is a form or type of assets under which rights are obtained to receive future…

Q: a premium is purchased by an entity, the effect in the assets section would be

A: Assets refer to the sum value of money invested by an entity into its resources required for the…

Q: loses significant influence over the associate, the balance of the investment in the associate is…

A: When the company has significant influence over the associate, then equity method should be used for…

Q: Where the payment of an investment property is deferred beyond normal credit terms, how should the…

A: Property, plant, and equipment are tangible fixed assets. These are depreciable assets which mean…

Q: Which of the following statements best describes the term "liability"? * a. An excess of equity over…

A: The balance sheet represents the financial position of the business with assets and liabilities on a…

Q: cordance with PFRS 2, Share-based Payment, how should an entity recognize the change in fair value…

A: The grant of shares or share  based option to the employee and director by the most company in order…

Q: Which of the following will be affected by an increase in the provision for doubtful debts? Gross…

A: The question is multiple choice question  Required  Choose the Correct Option.

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: A statement of affairs measures a deficiency – traceable to unsecured creditors without priority –…

A:

Q: For cash-settled share based payment transactions, until the liability is settled, the entity is…

A: Solution: As per IFRS 2, "For cash-settled share-based payment transactions, entity should measure…

Q: The acquirer shall recognize separately the acquiree's identifiable assets, liabilities and…

A: As per the provision in IAS37, contingent liability is a liability which depends on happening of…

Q: According to PFRS 9, impairment gain

A: As per PFRS9 impairment losses and impairment gains (in the case of purchased or originated…

Q: When the contractual cash flows of a financial asset are renegotiated or otherwise modified and the…

A: IFRS:   It stands for International Financial Reporting Standards. It is responsible set standards…

Q: What should be done with the transaction on August 2019?   a. Disclose as provision since the…

A: As per IFRS 37 A provision is present obligation from past event and it is probable that outflow of…

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: Theoretically, unearned items (deferred revenues) should not be classified as a. deferred credits…

A: Deferred credits: It refers to the money received by a company but not immediately reported as…

Q: Which is the proper way to report a contingent asset?   a. As an asset b. No disclosure and no…

A:

Q: Any of the following criteria is considered satisfaction by an entity of performance obligation over…

A: As per IFRS 15, An entity transfers control of a good or service over time and, therefore, satisfies…

Q: Which of the following statements about Accounting Changes is incorrect?

A: Answer

Q: Residual interest in the asset of an entity that remains after deducting its liabilities is? a.…

A: Accounting Equation - Accounting Equation is calculated using following equation - Assets =…

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: 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: 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: The prior period will be affected if during the current year the management of an entity decides to…

A: Prior period is the period before the current accounting year. Non current asset is the long term…

Q: Under PFRS 3, when is a gain recognized in consolidating financial information? Group of answer…

A: Introduction:- As per IFRS 3 deals Business Combinations. Business combinations means acquirer…

Q: Actuarial (Remeasurement) gains and losses are reported as OCI as they occur using a. U.S. GAAP. b.…

A: Both US GAAP and IFRS requires to record acturial gains or losses through other comprehensive income…

Q: The “excess of the acquirer’s interest in the net fair value of acquiree’s identifiable assets,…

A: The parent entity acquires control in the subsidiary entity by acquiring their net assets in…

Q: Under what circumstances should a loss contingency be accrued?

A: Loss contingency: Loss contingency is contingency where existing situation or circumstances where…