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10 Cards in this Set
- Front
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d. All of these are used in measuring financial assets |
Depending on the business model for managing financial assets, an entity shall classify financial assets subsequent to initial recognition at a. Fair value through profit or loss b. Amortized cost c. F air value through other comprehensive income d. All of these are used in measuring financial assets |
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d. All of these are correct. |
Which of the following is a characteristic of a financial asset held for trading?
a. It is acquired principally for the purpose of selling or repurchasing it in the near term. b. It is part of a portfolio of financial assets that are managed together and for which there is actual pattern of short-term profit taking. c. It is a derivative that is not designated as an effective hedging instrument. d. All of these are correct. |
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c. Held for trading and held to profit from price changes |
Under IFRS, the presumption is that equity investments are a. Held for trading b. Held to profit from price changes c. Held for trading and held to profit from price changes d. Held as financial assets at fair value through other comprehensive income |
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d. Debt investment at amortized cost |
All of the following shall be measured at FVPL, except
a. Financial asset held for trading b. Debt investment irrevocably designated at FVPL c. Investment in quoted equity instrument d. Debt investment at amortized cost |
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a. Nontrading investments of less than 20%. |
Equity investments irrevocably accounted for at fair value through other comprehensive income are a. Nontrading investments of less than 20%. b. Trading investments of less than 20%. c. Investments of between 20% and 50%. d. Investments of more than 50%. |
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b. Whether the financial asset is a debt or an equity investment. |
Entities are required to measure financial asset based on all of the following, except a. The business model for managing financial asset. b. Whether the financial asset is a debt or an equity investment. c. The contractual cash flow characteristics of the financial asset. d. All of the choices are required. |
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c. Amortized cost |
Debt investments that meet the business model and contractual cash flow tests are reported at a. Net realizable value b. Fair value c. Amortized cost d. The lower of amortized cost and fair value |
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b. Fair value |
Debt investments not held for collection are reported a. Amortized cost b. Fair value c. The lower of amortized cost and fair value d. Net realizable value |
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c. Held for collection debt investments |
Debt investments reported at amortized cost are a. Managed and evaluated based on a documented risk management strategy b. Trading debt investments c. Held for collection debt investments d. All of these are correct |
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d. When the business model is to collect contractual cash flows that are solely payments of principal and interest and also to sell the financial asset |
A debt investment shall be measured at fair value through other comprehensive income a. When the debt investment is held for trading. b. When the debt investment is not held for trading. c. By irrevocable designation d. When the business model is to collect contractual cash flows that are solely payments of principal and interest and also to sell the financial asset |
