Answered: Under PFRS 9, transaction cost incurred…

Under PFRS 9, transaction cost incurred are expensed in acquiring this type of investment securities: Group of answer choices FVTOCI and AC. AC only. FVTPL only FVTOCI only

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: Interest income recognized for debt investments classified as fair value through other comprehensive…

A: Interest income recognized for debt investments classified as fair value through other comprehensive…

Q: Which of the following is correct? Assets, Liabilities, Capital, a. P7,850, P1,250, P6,600 b.…

A: Assets = Liabilities + Capital

Q: Under IFRS, companies have the choice to use the effective - interest method or straight-line method…

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: 1.222Weighted Average Cost of Capital (WACC) and Risk Adjusted Discount Rate (RADR)are often used…

A: 1. Weighted Average Cost of Capital (WACC):Definition: WACC is the average rate of return that…

Q: A market in which all financial assets can be sold to someone other than the original issuer is…

A: A primary market is a market where securities are first issued by its original issuer/ creator. Once…

Q: QUESTION 21 The risk inherent in the commercial real estate asset class has historically fallen in…

A: Real estate investment involves risk and return. The risk of investment in real estate can minimize…

Q: Please answer with reason for all why the option is correct and why the other options are…

A: The correct option is C. Share application account.Explanation:When money is received at the time of…

Q: Security selection refers to top-down analysis. O investing only in "safe" securities. the…

A: Investment analysis of various individual will depend upon sectoral analysis and security selection…

Q: When an investment in an available-for-sale debt security is transferred to trading because the…

A: Available for sale debt securities are those investment which is held by the entity not to hold till…

Q: The market value option (fair value option) a. Does not apply to investments in bonds classified…

A: The fair value option is the alternative for a business to record its financial instruments at their…

Q: II. Supply the appropriate initial and subsequent measurement of the following financial statement…

A: 47. E. Present value: the lease receivable is initially calculated as the present value of the lease…

Q: . Derivative securities are also called contingent claims because a. their owwners may hoose…

A: Derivative securities are securities whose payment completely depends on the value of other assets.…

Q: 11. Debt investments at fair value through other comprehensive income are initially measured at…

A: According to IFRS guidelines initial measurement of the Debt investment which can be either…

Q: AASB 13 defines exit price as: Select one: A. The price that would be received to sell an asset…

A: AASB 13 talks about Fair Value Measurement and it has three objectives, Defining Fair Value.…

Q: Interest revenue for debt investments at fair value through other comprehensive income

A: IFRS 9 - Financial instruments deals with the calculation of interest income on debt investments.

Q: 18. n accordance with PFRS 9, an entity may reclassify Group of answer choices Financial assets…

A: concept reclassification of securities Equity securities Initially FVTPL or FVTOCI Cant be…

Q: All of the following statements regarding available-for-sale debt securities are true, except for…

A: Debt Securities available for sale are recorded at the par value. There is no rule to recognized…

Q: The majority of financial instruments are valued using: Group of answer choices fair value…

A: Financial instruments are the assets that can be traded. Most of the financial instruments provide…

Q: How much is the carrying amount/initial recognition of the bond for each of the below…

A: Given in the question: Face Value of Bond = 2,000,000 Life = 5 Years Coupon Rate = 10% Ongoing…

Q: GAAP requires trading and available-for-sale investments to be reported at their Group of answer…

A: REASON AS PER GAAP , TRADING AND AVAILABLE - FOR - SALE INVESTMENTS TO BE REPORTED AT THIER FAIR…

Q: Commodities of broker-traders are measured at *

A: As per IAS 2 Inventories, this standard has some exceptions. One such exception is commodity…

Q: The underlying equity of an investment at acquisition: Question 6Answer a. Is recorded in the…

A: The accounting treatment of the underlying equity refers to the methods and principles applied in…

Q: Off-balance-sheet arrangements are included in which category of Form 10-K? Select one: O O O a.…

A: The Form 10-K is a critical document for investors and analysts as it offers a comprehensive view of…

Q: Prepare Pina Colada general journal entry to record the sale of the David Jones shares. (Credit…

A: FV-NI stands for "Fair Value through Net Income." Accounting for securities under FV_NI is a method…

Q: 17- Securities newly issued are sold to investors in the _____ market and later sold between…

A: The financial markets are broadly divided into two parts: Capital market- It is a market which…

Q: Bonds payable are initially recognized at A. issue price minus transaction costs incurred by the…

A: Bonds are the capital market securities that represent a borrowing instrument for the issuer of…

Q: The sale of new securities is known as: O primary offering O secondary offering O initial public…

A: The correct answer is "primary offering".This is because it is the sale of new securities directly…

Q: The measurement required by IFRS 2 for share option in an is the * O equity-settled share-based…

A: Under IFRS 2 Share-Based Payment, equity-settled- share options are measured using fair value.

Q: For hedge accounting to be used, U.S. GAAP requires that these criteria must be satisfied, except: O…

A: The objective of hedge accounting is to match the timing of income statement recognition of the…

Q: What is a bond sinking fund investment? Question 12 options: An investment that is decreasing in…

A: A sinking fund investment is a type of investment, which is actually the money, or any portion of…

Q: Under PFRS 9, the classification of debt investments shall be made on the basis of:

A: Under PFRS, the classification of debt investment is done on the basis of the business model of…

Q: A bond investment that satisfy the amortized cost measurement may be designated a. irrevocably at…

A: As per IFRS 9 "Financial Instruments" classification to amortized cost is permissible for debt…

Q: Which of the following is measured at fair value with fair value changes recognized in profit or…

A: Explanation: Held to maturity investments: Investments that are held to maturity are classified at…

Q: Plz solve !! Securities premium reserve can be used for writing of: A/ preliminary expenses B/ Fixed…

A: Securities premium amount is that amount which is received on issue of shares and this amount is…

Q: designation s to whether the equity investment is at FVPL or OCI depends upon whether the securities…

A: There are many methods of the valuations and based on the valuation there are classifications of…

Q: One of these components is not included in the current asset of an organisation. O A. Short term…

A: Current assets include those assets that a company can convert into cash within a year. Current…

Q: The advantage of over-the-counter products such as swaps or forwards contracts,relative to…

A: The question is multiple choice question. Required Choose the Correct Option.

Q: . Share-based payments may be classified as liabilities.

A: Given statement is share based payments may be classified as liabilities.

Q: Compare and contrast the unit trusts and the exchange traded funds.

A: Given, We are required to explain the comparison between unit trusts and (ETF's).

Q: nvestments in equity instruments are financial assets because they are Group of answer choices…

A: Financial instrument: International financial reporting standard- 9 (IFRS-9) states the rules and…

Q: Q12. The following are commonly used plug items, except a. cash and marketable securities b.…

A: Source of raising finance includes: Long term loans & Advances Short term loans and advances…

Question

Under PFRS 9, transaction cost incurred are expensed in acquiring this type of investment securities:

Group of answer choices

FVTOCI and AC.

AC only.

FVTPL only

FVTOCI only

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

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

.X transfers a marketable equity security to Y.For each of the following transferprovisions [considered independently], consider the affected requirement for transfer offinancial assets.a.Y may not use the security as collateral for a loan. How should X account for thetransfer? Why? b.X attaches a call to the security, having an exercise price of $50. How should Xaccount for the transfer if the price is highly unlikely to rise to $50? Why?
R2 Explain classification of commercial securities.
A5 1 What is the dilution of percentage ownership and dilution of market value in the context of rights offering?
F1
What is the default classification for an equity investment? A Fair value through profit or loss B Fair value through other comprehensive income C Amortised cost D Net proceeds
zed 3. Which of the following reclassifications of financial assets is permitted under PFRS 9? a. Reclassification from FVPL designation to Amortized cost b. Reclassification from FVOCI (election) to FVPL C. Reclassification from held for trading equity securities to the if a ord, amortized cost d. Reclassification from amortized cost and to FVPL of
O Mark for Review Question 7 of 30 Which is not an element of Tire Il capital O Revaluation reserve O Undisclosed reserve paid-up ordinary share capital OInvestment reserve aCCOunt
S1: Bond investments classified and accounted for as financial asset at amortized cost are recognized initially at fair value plus transaction costs that are directly attributable to the acquisition. S2: Transaction costs attributable to the acquisition of bond investments held for trading or at fair value through profit or loss are expensed immediately. O Only S1 is TRUE O Only S2 is TRUE Both statements are TRUE O Both statements are FALSE
Which of the following reclassifications of financial assets is permitted under PFRS 9? a. reclassification out of designated at FVPL to amortized cost b. reclassification out of the FVOCI (election) measurement category to financial assets measured at FVPL c. reclassification out of held for trading equity securities to amortized cost d. reclassification from amortized cost and to FVPL
20.Investments in debt securities are classified into the following categories according to management's intention: Select one: a."To hold until maturity", "available for sale" and "to trade". b. "To retain until maturity" and "to negotiate" c. All are classified as "to hold until maturity". d. "To retain until maturity" and "Available for sale".
Both trading securities and available - for - sale securities are reported at their fair values Select one: 1. True 2. False
3.11 In what way are these two quotes equivalent? Bid & $0.5852/SFr Ask" "$0.5841/SFr "$0.5852/SFr Bid & $0.5841/SFr Ask"