Chapter 12, Problem 2CCTC

Q11 Which of the following options is INCORRECT regarding financial assets and the subsequent measurement model(s)? Select one: a. Financial Asset: Equity instrument Management Intention: Realise fair value changes Measurement Model: Fair value, adjustments in OCI _ b. Financial Asset: Debt instrument Management Intention: Earning contractual cash flows Measurement Model: Amortised cost  _ c. Financial Asset: Equity instrument Management Intention: Realise fair value changes Measurement Model: Fair value, adjustments in SPL  _ d. Financial Asset: Debt instrument Management Intention: Earning contractual cash flows Measurement Model: Fair value, adjustments in OCI  _

Choose the correct answer:    Under IFRS 9, the cumulative balance of equity as a result of measuring the investment at fair value through OCI            a.   shall be reversed to profit or loss once security has been sold.            b.   shall be reversed to profit or loss once security has been impaired.            c.   shall not be reversed to profit or loss but can be transferred to another equity account.            d.   shall not be reversed to profit or loss nor transferred to another equity account.     .

IFRS requires companies to measure their financial assets at fair value except when based on: a. whether the equity method of accounting is used. b. whether the financial asset is a debt investment. c. whether the financial asset is an equity investment. d. whether an investment is classified as trading.

Under IFRS, a company: a. should evaluate only equity investments for ­impairment. b. accounts for an impairment as an unrealized loss, and includes it as a part of other comprehensive income and as a component of other accumulated comprehensive income until realized. c. calculates the impairment loss on debt investments as the difference between the carrying amount plus accrued interest and the expected future cash flows discounted at the investment's historical effective-interest rate. d. All of the above.

15, please answer last part. thanks Accumulated Other Comprehensive Income Allowance for Investment Impairment Bond Investment at Amortized Cost Cash Commission Expense Dividends Receivable Dividend Revenue FV-NI Investments FV-OCI Investments Gain on Disposal of Investments - FV-NI Gain on Disposal of Investments - FV-OCI Gain on Sale of Investments GST Receivable Interest Expense Interest Income Interest Payable Interest Receivable Investment in Associate Investment Income or Loss Loss on Discontinued Operations Loss on Disposal of Investments FV-NI Loss on Disposal of Investments FV-OCI Loss on Impairment Loss on Sale of Investments No Entry Note Investment at Amortized Cost Other Investments Recovery of Loss from Impairment Retained Earnings Unrealized Gain or Loss Unrealized Gain or Loss - OCI

In investment in debt securities accounted for at fair value through other comprehensive income, the difference between the fair value and the accumulated unrealized gain or loss - OCI presented in the statement of financial position would normally equal to: *   A. The unrealized gain or loss - OCI presented as part of other comprehensive income     B. The amortized cost of the debt securities     C. The interest income for the period     D. The fair value of the debt securities in the previous period

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)

All of the following are key similarities between GAAP and IFRS with respect to accounting for investments except: a. IFRS and GAAP require the same accounting for equity securities. b. IFRS and GAAP apply the equity method to significant influence equity investments. c. IFRS and GAAP have a fair value option for financial instruments. d. the accounting for impairment of investments is similar, although IFRS allows recovery of impairment losses. 2. Which of the following statements is correct?

Which of the following is not a category of financial assets under GAM? Group of answer choices A.Held to maturity investments B.Available for sale financial assets C.Financial asset at fair value through other comprehensive income D.Loans and receivable