Under the fair value through other comprehensive income (FV-OCI) model, holdinggains and losses are normallySelect one:a. recognized in other comprehensive incomeO b. accumulated in retained earningsc. not recognized but are mentioned in the notes to the financial statementsd. recognized in net income If a company invests in the debt instrument of another entity, any premium ordiscount 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.

1. Fair Value Through Other Comprehensive Income (FV-OCI) Model:Correct Answer: a. recognized in…

Under the fair value through other comprehensive income (FV-OCI) model, holding gains and losses are normally Select one: a. recognized in other comprehensive income O b. accumulated in retained earnings O C. not recognized but are mentioned in the notes to the financial statements O d. recognized in net income

Under the fair value through other comprehensive income (FV-OCI) model, holding gains and losses are normally Select one: a. recognized in other comprehensive income O b. accumulated in retained earnings O C. not recognized but are mentioned in the notes to the financial statements O d. recognized in net 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 8GI

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Debt issuance costs are: Accounted for as a deduction from the equity balance on the balance sheet Recognized initially as a current liability on the balance sheet Amortized over the term of the related debt liability Expensed on the income statement when the transaction occurs Which one is the correct answer please?
Merchandise sold by Lang Company to its customers last year amounted to $13,720,000; sales returns and allowances were $370,000, sales discounts were $175,000, and freight-out was $140,000. Net sales last year for Lang Company were a. b. C. d. Select one: a. $13,350,000. b. $13,720,000. C. $13,175,000. d. $13,035,000.
17. When a debt investment at FVOCI is reclassified to FVPL, an entity willa. Remeasure the investment to the original cost and eliminate the cumulative unrealized gain or loss in OCI.b. Transfer the cumulative unrealized gain or loss to retained earningsc. The cumulative gain or loss previously recognized in OCI is reclassified to profit or loss.d. The effective rate at the date of reclassification shall be the basis for interest income to be recognized in subsequent periods.
Which of the following statements is TRUE? a. The acquirer shall measure the identifiable assets acquired and the liabilities assumed at their acquisition-date fair value. b. Transaction costs directly related to the issue of debt instruments are deducted from the fair value of the debt on initial recognition and are amortized over the life of the debt as part of the effective interest rate. Directly attributable transaction costs incurred issuing equity instruments are deducted from revenue. c. In net asset acquisition, gain on bargain purchase is recognized in the Profit or Loss of the acquirer (after reassessment) if the consideration transferred is more than the fair value of net assets acquired. d. According to IFRS #3: Revised, cost directly attributable in effecting the business combination (e.g., finders’ fee and other direct cost) must be charged to share premium.
A gain or loss from debt restructuring should be A. treated as increase or decrease in Paid-in Capital B. recognized in income of the period of restructuring C. amortized over the remaining original life of the restructured loan D. allocated between the portion that is an increase (decrease) in Paid-in Capital and a portion that is recognized in the current income
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
rice be *. An entity reclassifies debt securities from FVOCI to Amortized cost. On reclassification date, the amount debited to the asset's new classification is equal to the asset's a. original acquisition cost. D. fair value on reclassification date. C. amortized cost as at the reclassification date. d. fair value on acquisition date.
Impairments of debt investments at amortized cost are recognized as component of Other Comprehensive Income. based on fair value for non-trading investments. based on discounted contractual cash flows. Evaluated at each reporting date.
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Investment in debt instruments classified asFA@FVTOCI recognizes which of the following in OCI? a) Changes in fair valueb) Impairment gains and lossesc) Interest calculated using the effective interestmethod.d) All of the above.
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