For each of the financial instruments below, match them to the appropriate accounting treatment. Instrument Treatment Convertible loan notes Fair value through profit or loss Equity investments where the entity has an intention to hold long-term and has chosen to apply the alternative Amortised cost treatment Financial liability, not held for trading Split accounting Equity investments (default position) Fair value through other comprehensive income

For each of the financial instruments below, match them to the appropriate accounting treatment. Instrument Treatment Convertible loan notes Fair value through profit or loss Equity investments where the entity has an intention to hold long-term and has chosen to apply the alternative Amortised cost treatment Financial liability, not held for trading Split accounting Equity investments (default position) Fair value through other comprehensive income

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 17GI

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Similar questions

Investment in debt instruments classified as FA@FVTOCI recognizes which of the following in OCI? A. Interest calculated using the effective interest method. B. All of these. C. Changes in fair value D. Impairment gains and losses
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
Investment in debt instruments classified as FA@FVTOCI recognizes which of the following in OCI? Group of answer choices Impairment gains and losses All of these Interest calculated using the effective interest method. Changes in fair value
An unrealized holding gain or loss on a trading debt investment is the difference between the investments Select one: a. fair value and original cost. b. fair value and amortized cost. c. face value and amortized cost. d. face value and original cost.
The realized gain (loss) on sale of debt investments with an objective of collecting contractual cash flows and to sell when circumstances warrants is the difference of the net selling price and the fair value of the bonds. Group of answer choices False True
Which of the following loan commitments are within the scope of IPFRS 9? * Loan commitments that the entity designates as financial liabilities at fair value through profit or loss Loan commitments that can be settled net in cash or by delivering or issuing another financial instrument Commitments to provide a loan at a below-market interest rate
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If a company invests in the debt instrument of another entity, any premium or discount is: Select one: a. included in other comprehensive income and amortized over the life of the instrument. b. included in the carrying value of the instrument and not amortized. c. amortized as part of interest income over the life of the instrument. d. immediately expensed to income.
Which of the following is classified as nonmonetary? a. Cash surrender value b. Long-term receivable c. Accrued liability on firm purchase commitment d. Inventory
A bond investment that satisfy the amortized cost measurement may be designated a. irrevocably at either fair value through other comprehensive income or fair valiue through profit or loss. b. irrevocably at fair value through other comprehensive income c. revocably at fair valiue through profit or loss. d. irrevocably at fair value through profit or loss