PFRS 9 requires entities to measure their financial assets based onThe contractual cash flow characteristics of the financial asset.The company’s business model for managing its financial assets.a. Neither 1 nor 2b. 2 onlyc. Both 1 and 2d. 1 only

Answered: PFRS 9 requires entities to measure…

Business

Accounting

PFRS 9 requires entities to measure their financial assets

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Statement I: Under accrual accounting the computation of the entity’s net income is by deducting the…

A: Under accrual accounting, expense are recognized even if they are not actually paid and income is…

Q: Each of these assets require companies to use estimates, judgments, and discretion, except:…

A: Non Liquid assets are those assets that require some time to realize in cash. Equipment, Investors,…

Q: PFRS 9 requires entities to measure their financial assets based on The contractual cash flow…

A: Financial assets are those assets which does not carry any physical existence rather the holder of…

Q: The profit or loss of the entity based from its current operation is required, under IAS 1…

A: Solution: Following are the four basic financial statements of the company: 1. Statement of…

Q: PFRS 9, Financial Instruments deals with the measurement and classification of which of the…

A: Financial Instruments deal with the measurement and classification of financial assets, Financial…

Q: Text Ch.2 #2 Which of the following statements describe tranasactions that would be recorded in an…

A: Accounting Transaction: An economic event, which causes impact (increases or decreases the value of…

Q: Which of the following should be classified as financial instrument? Inventories C. Patents B.…

A: IAS 32 defines financial instrument as a " contract that gives rise to a financial asset of one…

Q: Do financial statements prepared under IFRS normally present assets from least liquid to most liquid…

A: Balance sheet: This financial statement reports a company’s resources (assets) and claims of…

Q: PFRS 9 requires entities to measure their financial assets based on The contractual cash flow…

A: Solution: PFRS 9 requires entities to measure their financial assets based on: The contractual cash…

Q: According to IAS 32 Financial Instruments: Presentation, which of the following could be classified…

A: Assets: Assets are resources (property) presented in the balance sheet because for it an…

Q: Accounting The account "Net-Assets: Resources Released from Restriction" is used to: A) Reduce…

A: Correct option with proper explanation are as follows

Q: exposure deals with cash flows that result from existing contractual obligations. OA. Operating OB.…

A: Exposures means potential changes in value or items in the business. It can be transaction exposure,…

Q: Hi please assist

A: The accounting is based on various concepts such as historical concept, Materiality, conservatism,…

Q: Is it true or not? An entity shall prepare all its financial statements, except the statement for…

A: An organisation can report revenue before obtaining payment for the products or services sold and…

Q: 4. _______ is the act of paying out includes money paid out to run a business, cash expenditure and…

A: Disbursement – it means paying out. It can be used to describe money paid into running a business…

Q: That a business may only report activities on financial statements that are specifically related…

A: Accounting concepts are those rules and regulations which are used for the purpose of accounting and…

Q: As per the definition of revenue stated by IFRS15, which of the following statements is correct?

A: The income statement includes revenues and expenses incurred by the business.

Q: PFRS 9 can an entity classify financial assets that meet the amortized cost criteria as at FVTPL?

A: As per PFRS 9, an entity may classify financial assets initially according to the measurement at…

Q: Under U.S. GAAP, the statement of cash flows classifies cash expenditures for interest expense as an…

A: (U.S. GAAP) GENERALLY ACCEPTED ACCOUNTING PRINCIPLES ARE COLLECTION OF THE ACCOUNTING RULES AND…

Q: 1. Which of the following statements are correct? (1) Materiality means that only items having a…

A: Materiality means omission or misstatement of any financial information in the financial statement…

Q: Explain which transactions are reported as operating activities, investing activities and financing…

A: Statement of cash flows: The statement of cash flows indicates the amount of cash earned and spent…

Q: Which statement is incorrect? A. An entity shall report cash flows from operating activities either…

A: Cash flow statement is one of the four main financial statement. Cash flow statement shows the…

Q: These are conditions required by IFRS 9 for notes and accounts receivable to be measured at…

A: The accumulated portion of the fixed asset that has been charged to expenditure through either…

Q: ntermediate Accounting 105 What is the purpose of a statement of cash flows? How does it differ…

A: Accounting plays important role in every business because it helps you track income and expenditures…

Q: Real assets are assets used to produce goods and services always the same as financial assets always…

A: Real assets are tangible / physical assets used in production of goods or services. These assets are…

Q: Are the following statements true or false, according to IAS1 Presentation of Financial Statements?…

A: Lets discuss IAS 1 here. As per IAS 1 deals with the presentation of the financial statement. It…

Q: 1. Total free assets 2. Net free assets 3. Unsecured liabilities with priority 4. Unsecured…

A: Liquidation refers to winding up of a business. A statement of net affairs is prepared which shows…

Q: Interest received and interest payments must be reported as operating cash flows using a. IFRS. b.…

Q: The following may be presented as current assets, except * A. Advances to shareholders, directors,…

A: Current assets: These include all the assets of the business that can be converted into cash within…

Q: Under ASPE the receipt of interest on loans would be reported on a statement of cash flows under…

A: Operating activities are the routine financial transactions supporting an organization's main…

Q: at is the main difference between basic and completed accounting system? 2- What is the main…

A: What is the main difference between basic accounting system and complete accounting system What is…

Q: Statement 1: An entity shall report cash flows from operating activities either using direct or…

A: Accounting is the process of recording financial transactions that are material to the business. It…

Q: 1. How to determine whether a company's assets have been overstated using only its financial…

A: Financial statements are formal records that provide a summary of a company's financial transactions…

Q: To better understand the financial information, it must be classified and ____________. a. Relevant…

A: Introduction:- Every company prepare financial statements every financial year. which is very useful…

Q: Question 1 True or False: Monetary Assets and liabilities constitute assets and liabilities…

A: Assets means the resources owned by company. Liabilities means the amount owed towards the outsider…

Q: Investing activities involvewhich of the following? a) borrowing and repaying of debt. b)…

A: cashflow statement can be divided into three parts: investing activites financing activites…

Q: Financial assets refer to legal documents that provide evidence of ownership and claim”. Discuss…

A: What are financial assets and what are the different types? A financial asset is a liquid asset that…

Q: Required: a. What is the ratio of real assets to total assets? (Hint: for this question, only…

A: Real Assets: Real assets are tangible possessions with inherent value derived from their composition…

Question

PFRS 9 requires entities to measure their financial assets based on

The contractual cash flow characteristics of the financial asset.
The company’s business model for managing its financial assets.

a. Neither 1 nor 2

b. 2 only

c. Both 1 and 2

d. 1 only

Definition Definition Net amount of cash that an entity receives and expends over the course of a given period. For a business to continue operating, positive cash flows are required, and they are also necessary to produce value for investors. Investors in particular prefer to see growing cash flows even after capital expenditures have been paid for (which is known as free cash flow).

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

lAS I required that an entity prepare its financial statements (except cash flows statement) using the : a) @current cost basis of accounting b) cash basis of accounting c) © accrual basis of accounting d) present value basis of accounting
Examined and describe the communication aspect of accounting in relation to assets valuation and presentation on financial statements
Identify the cash flow activity involve when an entity sold equipment at book value Options: • Not part of cashflow • Investing • Operating • Financing
Which of the following is NOT TRUE about the basic and additional financial statements a) Revenues and expenses to generate these revenues plus other revenues and prepaid expenses are presented on the Income Statementb) They are all prepared according to the accrual basis of accounting except the statement of cashflowsc) Statement of financial position is another name for the balance sheetd) Assets are presented on the asset side of the statement of financial position; whereas the financial sources of assets are presented on the liabilities & equity side
Intermediate Accounting 105 What is the purpose of a statement of cash flows? How does it differ from a balance sheet and an income statement? Please provide GAAP concept and own explanation / example.
Which statement is incorrect regarding contractual cash flows that are solely payments of principal and interest (SPPI)? a.Contractual cash flows that are SPPI on the principal amount outstanding are consistent with a basic lending arrangement. b.Principal is the fair value of the financial asset at initial recognition. c.An entity shall assesswhether contractual cash flows are SPPI on the principal amount outstanding for the currency in which the financial asset is denominated. d.An originated or a purchased financial asset can be a basic lending arrangement only if it is a loan in its legal form.
QUESTION 10 Which of the following in accounts would be classified as current assets on the balance sheet? a. Accounts receivable, inventory, cash equivalents b. Pre-paid expenses, goodwill, long term investments C. Property, plant and equipment, inventory and goodwill d. Marketable securities, accounts payable, property plant and equipment
assets that are purchased for use in operations but are not intended to be resold are called a. fixed assets b. income statement c. marketing costs d. proper cash flow
Assets are creditors claims on assets. These claims reflect company obligations to provide assets, products or services to others True B False
Statement 1: The term "net assets" represents total contributed capital. Statement 2: Accrued revenue would normally appear in the statement of financial position under current liability. Both statements are true. Both statements are false. Only statement 1 is true. Only statement 2 is true.
The cash basis and accrual basis of accounting in the public sector in terms of A. Recognition of revenue B. Recognition of expenditure C. Disclosure of non financial assets D. Notion of depreciation Please answer part A-D
1. The aggregate cash flows arising from obtaining or losing control of subsidiaries or other businesses shall a. Be classified as operating activities b. Be classified as investing activities c. Be classified as financing activities d. Not be reported