Which statement is incorrect regarding classification of financial assets?   a. An entity can classify financial assets that meet the amortized cost criteria as at FVPL if doing so eliminates or reduces an accounting mismatch.   B. In order to be classified at fair value through OCI, a debt instrument needs to have either simple principal and interest cash flows or be held in a business model in which both holding and selling financial assets are integral to meeting management’s objectives.   C. An investment in equity instrument may not be classified as financial asset subsequently measured at amortized cost.   D. Reclassifications of financial assets are only permitted on the change of an entity’s business model and are expected to occur only infrequently.

Q: The principle of conservatism is concerned with Oa. the company's procedures for recording…

A: conservatism principle is one of the basic principle of accounting that provides guidance on how…

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: The use of fair value to account for debt investments allows for more relevance of accounting…

A: Step 1 Fair valuation concept is universally accepted by all of the worldwide regulating accounting…

Q: Which of the following would not explain the difference between current and non-current assets?…

A: What are currents assets and non current assets let us understand that first.  Current assets are…

Q: Depending on the business model for managing financial assets, an entity shall classify financial…

A: A financial asset is a liquid asset with a contractual right or ownership claim as its source of…

Q: Consider our requirement to provide ‘true’ accounting information (the ‘true and fair’ requirement).…

A: A cash flow hedge is a method used by the investor in order to offset the risks of cash flow with…

Q: The primary objective of financial management Can be in the form of   a. Maximise the entity’s asset…

A: Financial management means management of funds or finance in the business. It is about making future…

Q: The selection of the appropriate concept of capital by an entity should be based on the needs of the…

A:

Q: Choose the correct. In which of the following areas does the IASB not allow firms to choose between…

A: a.  Measuring property, plant, and equipment subsequent to acquisition: This is an incorrect option…

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: The acquisition of assets by issuing securities would be classified as an operating activity. an…

A: Issuing securities for the acquisition of assets doesn't involve any cash flows.

Q: Which one of the following has the potential to allow for the greatest amount of off-balance-sheet…

A: Off-balance sheet financing (OBSF) is an accounting technique in which a company records certain…

Q: The standard setters identify three approaches to accounting for the impairment of financial asset…

A: a) ASPE - Incurred loss model and fair value model

Q: According to the principle of conservatism, when faced with uncertainty about the value of an item,…

A: In bookkeeping, the principle of conservatism, otherwise called the doctrine of prudence, is an…

Q: Which statement is incorrect regarding contractual cash flows that are solely payments of principal…

A: IFRS 9 talks about solely payments of principal and interest (SPPI).

Q: investments in debt instruments are financial asset

A: First option is wrong because debt instruments are not equity instruments. Second option is wrong…

Q: According to CF of IASB Determining how an asset or liability should be measured should ideally be…

A: IASB stands for International accounting standard board. It is a privately-owned body set up to…

Q: The International Accounting Standards Board’s Conceptual Framework for Financial Reporting  defines…

A: In general term, asset is anything which contains economic value and which can be converted into…

Q: Assume that a business is headed for certain bankruptcy and it is evident that its liabilities…

A: Generally Accepted Accounting Principles (GAAP) or US GAAP are the collection of accounting…

Q: Which of the following need not be disclosed in the financial statements or the notes thereto?…

A: A contingent liability is a liability that may arise as a result of the outcome of a future event…

Q: y method for the preparation of consolidated financial statements in order to make investment…

A: Argue for using the equity method for the preparation of consolidated financial statements in order…

Q: The means by which individuals hold their claims on real assets in a well-developed economy are A)…

A: A financial asset is a liquid asset which, from either a legal right or ownership assertion,…

Q: Which of the following is correct about subsequent measurement of financial asset at fair value? a.…

A: Fair value through other comprehensive income-financial assets are classified and measured at fair…

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

A: Correct answer is D. A financial asset is recognized when, and only when, the entity becomes a party…

Q: 1. Which of the following statements on principles and measurements of accounting in Islamic finance…

A: Islamic  Accounting Islamic accounting refers to the process of accounting based on Shari'ah which…

Q: Match the correct term with its definition.

A: Accounting concepts creates framework for financial statement preparation and its reporting.  The…

Q: While putting the value or price of an entity in financial records the lowest price is recorded not…

A: Accounting is the process of recording financial transactions (which can be measured in terms of…

Q: Sometimes the value spent by a corporation is recorded as an asset and sometimes as an expense. Find…

A: Following are the answers to the given questions

Q: The classification and therefore subsequent measurement of financial assets depends on.? Select one:…

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

Q: Why is continuity assumption,separate entity assumption and cost principle so important for…

A: Continuity means the assumption and principles will be continued to be followed every year so that…

Q: After initial recognition of exploration and evaluation assets, they are measured in the statement…

A: After initial recognition of exploration and evaluation assets, they are measured in the statement…

Q: Comment on the statement that materiality is in the eye of the beholder. How does this statement…

A: In accounting, materiality relates to the significance of any transaction or accounts. It is one of…

Q: Which of the following are the ways that a company can finance the purchase of assets?   Equity…

A: the correct option with proper explanation are as follows

Q: Which of the following is NOT correct regarding the rate of return on assets? a. The rate of…

A: Return on assets measures the profitability of a company relative to its assets. Return on assets =…

Q: Depending on the business model for managing financial assets, an entity shall classify financial…

A: A financial  asset can  be measured  at Fair value  through  profit or loss

Q: Select the assumption, principle or constraint that most appropriately justifies these procedures…

A: The accounting principle represents the rules and guidelines that are needed to be followed by the…

Q: Which of the following statements about "avoidable interest" is false? it is computed only on…

A: The avoidable interest measn the cost that is incurred to construct the long-term assets. It is also…

Q: All of the following statements are objective of financial reporting, except: О А. Provide…

A: Financial reporting means reporting on financial data that indicates the financial health of an…

Q: In which of the following areas does the IASB not allow firms to choose between two acceptable…

A: a. Measuring property, plant, and equipment subsequent to acquisition: This is an incorrect option…

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.