Under PFRS9, reclassification of investment in equity securities: A. Is allowed as long as it is based on a change in the entity's business model B. Is allowed, as long as the reclassification is made within the year the investment was acquired C. Is allowed, since the entity always has the option to carry the investment as either FVPL or FVOCI D. Is not allowed

Under PFRS9, reclassification of investment in equity securities: A. Is allowed as long as it is based on a change in the entity's business model B. Is allowed, as long as the reclassification is made within the year the investment was acquired C. Is allowed, since the entity always has the option to carry the investment as either FVPL or FVOCI D. Is not allowed

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter7: Financial Activities

Section: Chapter Questions

Problem 8QE

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Under PFRS9, investment in equity securities not held for trading are classified as: A. FVOCI B. Either FVPL or FVOCI, depending on the entity’s business model. C. FVOCI, if the entity opted to carry as FVOCI, otherwise, carried as FVPL. D. FVPL
20. Under PFRS9, investment in equity securities not held for trading are classified as: * a. FVPL b. Either FVPL or FVOCI, depending on the entity’s business model c. FVOCI, if the entity opted to carry as FVOCI, otherwise, carried as d. FVPL FVOCI
37. When an entity reduces its interest in an investment in equity securities accounted for by the equity method and changes in to the fair value method. What is the initial measurement of the investment for purposes of subsequent changes in market value? a. Carrying amount at the date of changea. Original costb. Market value at the date of changec. Market value at the date of acquisition
In accordance with PFRS 9, an entity may reclassify Group of answer choices: Derivatives Investments in equity instruments designated at FVTOCI None of these Financial assets designated at FVTPL
18. n accordance with PFRS 9, an entity may reclassify Group of answer choices Financial assets designated at FVTPL Derivatives Investments in equity instruments designated at FVTOCI None of these
For investment in equity securities carried as FVOCI under PFRS 9, the difference between the carrying value of the investment and its related cumulative unrealized gain or loss-OCI is * A. its unrealized gain or loss reported as a component of OCI for the period B. Its amortized cost C. its initial cost D. its unrealized gain or loss reported under profit or loss for the period A gain or loss arising on the initial recognition of biological assets and from a change in the fair value less costs to sell of a biological asset shall be included in: * A. Profit or loss for the period B. Other comprehensive income C. A separate revaluation reserve D. Either in the profit or loss or the other comprehensive income for the period The following items are generally classified as plant assets, except: a. Improvements to leased facilities b. Property held for future plant sites c.…
Which statement is incorrect? * a. Shares, issued in exchange for the settlement of a liability, are included in EPS calculation from the settlement date. b. Shares, that will be issued upon the conversion of a mandatorily convertible instrument, are included in the calculation of basic EPS from the date the contract is entered into. c. Contingently-issuable shares are treated as outstanding, and are included in the calculation of basic EPS from the date when all necessary conditions are satisfied. none of the above
1. Trade payables and other liabilities that are part of an entity'sworking capital may be presented as current liabilities even ifthey are expected to be settled beyond one year.2. According to PAS 1, a currently maturing debt that the entity'smanagement intends to refinance is presented as noncurrent.3. According to PFRS 15, if an entity expects that a portion of giftcertificates sold will not be redeemed, the entity recognizes theexpected breakage amount as revenue in proportion to the pattern of rights exercised by customers.4. Unearned revenue is revenue that is earned but not yet collected
1. Under IFRS 2 Share-Based Payment, what is the basis for measurement of share options? A. Fair value at the date of grant. B. Fair value at each reporting date. C. Expected fair value at the date pf exercise. D. Intrinsic value at each reporting date. 2. Under IFRS 2, Share-Based Payment, the value of the options that lapse after vesting shall A. be credited to expense during the period the options lapse. B. be credited to income during the period that the options lapse C. remain in equity. D. be converted into a liability. 3. When should the compensation expense be recorded as a result of share options granted by the enterprise to its employees?A. During the year of grant B. During the year that the options ultimately vest C. During the years when services are required to be rendered by the employees D. During the year when the option first becomes exercisable
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Under IFRS 2, Share-Based Payment, the value of the options that lapse after vesting shall be credited to income during the period that the options lapse remain in equity. be converted into a liability. be credited to expense during the period the options lapse.
Which statement is incorrect? * Shares, issued in exchange for the settlement of a liability, are included in EPS calculation from the settlement date. Shares, that will be issued upon the conversion of a mandatorily convertible instrument, are included in the calculation of basic EPS from the date the contract is entered into. Contingently-issuable shares are treated as outstanding, and are included in the calculation of basic EPS from the date when all necessary conditions are satisfied. none of the above