Which of the following costs may not be eligible for capitalization as borrowing costs under PAS 23? *       Interest on bonds issued to finance the construction of a qualifying asset.       Exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to interest costs pertaining to a qualifying asset.       Amortization of discounts or premiums relating to borrowings that qualify for capitalization.       Imputed cost of equity.

Q: receivables not measured initially at their transaction price are measured initially at a. fair…

A: Financial Asset or Receivables: The financial Asset or Receivables is measured initially at fair…

Q: Under IFRS, a company: a. should evaluate only equity investments for ­impairment. b. accounts for…

A: Option C is correct.

Q: Which of the following statements is TRUE? a. The acquirer shall measure the identifiable assets…

A: Answer:- a True Explanation:- The statement is true the acquirer must value the identifiable assets…

Q: Which of the following statements is true regarding capitalization of interest? O When excess…

A: The cost of borrowing to acquire or build a long-term asset is referred to as capitalized interest.…

Q: Impairments of debt investments at amortized cost are

A: Impairment: Impairment is the decrease in the value of a fixed asset other than depreciation. In…

Q: among the following is not an allowed offsetting? *

A: Concept of offsetting as per IFRS 1 vis a vis IAS 1 Assets , liabilties , incomes and expenses when…

Q: If the borrowing is not directly attributable to a qualifying asset, the borrowing cost is expensed…

A: Assets that take a significant amount of time so that they can be used in business by the entity are…

Q: 70. Those debt investment acquired that is not held for collecting contractual cash flows are…

A: solution concept whenever there is investment in financial assets made , the investment can be…

Q: According to PAS 23, borrowing costs are capitalized when *       They relate directly to the…

A: Answer-    Correct Option is Option A - They relate directly to the acquisition, construction, or…

Q: Which of the following statements is true? a. Borrowing costs are generally expensed except when…

A: Accounting principles are general rules and guidelines that the company follows while recording and…

Q: Treatment of Noncash Exchanges. The acquisition of equipment by assuming a mortgage is a transaction…

A:

Q: Which of the following statements is not applicable to contract acquisition costs under ASC Topic…

A: In the given case all of the following statements is applicable to contract acquisition costs under…

Q: Which of the following statements is true?(a) The fair value option requires that some types of…

A: Answer:   Option c.

Q: hich of the following is not one of the components of other comprehensive income?   a. changes in…

A: Which of the following is not one of the components of other comprehensive income?   a. changes…

Q: 6. Which of the following is not considered an appropriate application of offsetting under PAS 1?…

A: Offsetting-:  Offsetting, otherwise also named netting, carries place when entities propose their…

Q: 1. PAS 23 does not require which of the following disclosures? * A. The capitalization rate used to…

A: Hi student Since there are multiple questions, we will answer only first question.

Q: Investment in debt instruments classified as FA@FVTOCI recognizes which of the following in OCI?…

A: Solution: Investment in debt instruments classified as FA@FVTOCI recognizes following in profit or…

Q: Which of the following is not a category of financial assets under GAM? Group of answer choices…

A: Financial Assets are to be classified in the following four categories: 1. Financial Assets at fair…

Q: Which statement is incorrect regarding reclassification of financial assets? Group of answer…

A: The effective interest rate and the measurement of expected credit losses are adjusted as a result…

Q: Which of the following is not a characteristic of a financial asset held for trading? a. It is…

A: Trading in financial instrument include assets such as stocks bonds mutual fund. the financial asset…

Q: Which statement is incorrect regarding contractual cash flows that are solely payments of principal…

A: IFRS 9 talks about solely payments of principal and interest (SPPI).

Q: Which of the following is not an alternative for a capital charge for Operational Risk as stated in…

A: Operational risk means the risk arriving during the human error or system error. It is not at all…

Q: When an investment ceases to be an associate, the fair value of the investment at the date when it…

A: Investment is the amount saved by the investor in order to earn regular income as well as get the…

Q: Explain the ‘qualifying asset’ and how do we treat exchange rate differences relating to the…

A: The question is related to Borrowed Cost. Borrowed cost are those cost that are directly…

Q: All of the following components of other comprehensive income are reclassified subsequently to…

A: Other comprehensive income is the income which a company has not yet earned but will be earned in…

Q: Depreciation is based on the fair value of assets. An impairment loss occurs if the carrying value…

A: GIVEN     Depreciation is based on the fair value of assets. An impairment loss occurs if…

Q: Explain the ‘qualifying asset’ and how do we treat exchange rate differences relating to the…

A: A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for…

Q: Which statement is incorrect regarding reclassification of financial assets? All…

A: Reclassification of Financial Assets : (1) The Reclassification of the financial assets are…

Q: Which of the following is correct about subsequent measurement of financial asset at fair value? a.…

A: Fair value through other comprehensive income-financial assets are classified and measured at fair…

Q: Which of the following are reported at fair value? Debt investments. Equity investments. Both debt…

A: Debts investments are actually classified as available for sale and reported at fair value. Equity…

Q: Comprehensive income includes items not included in the computation of net income, such as foreign…

A: The income statement is the one prepared by the company to determine the net income/ loss that the…

Q: The capitalization rate used to determine the capitalizable borrowing cost should be disclosed.…

A: It is pertinent to note that as per IAS 23 borrowing costs incurred for acquisition, construction of…

Q: nvestment in debt instruments classified as FA@FVTOCI recognizes which of the following in OCI? A.…

A: For debt instruments measured at FVOCI, only the changes in Fair value is recognised in OCI.…

Q: 10 Under IFRS 9, which of the following is correct regarding reclassification of investments? Group…

A: When an entity reclassifies a financial asset so that it is measured at fair value, its fair value…

Q: When a debt investment at FVOCI is reclassified to FVPL, an entity will a. Remeasure the investment…

A: A contract entered into between two parties that give rise to a financial asset for one party and a…

Q: When the contractual cash flows of a financial asset are renegotiated or otherwise modified and the…

A: IFRS:   It stands for International Financial Reporting Standards. It is responsible set standards…

Q: Under the fair value option for debt investment, entities report all changes in fair value in…

A: Lets understand the basics. Fair value option means a option in which change in fair value in debt…

Q: Which statement is incorrect regarding contractual cash flows that are solely payments of principal…

A: Contractual cash flows are cash flows either cash inflows or cash outflows between two contracting…

Q: Which statement is incorrect regarding reclassification of financial assets? a) Reclassifications…

A: As per IFRS a) Reclassifications to FVTPL measurement category result to amounts recognized in…

Q: y, a recent Western Washington -year loan through Kent Lending, eement violates the applicable usu…

A: The answer has been mentioned below.

Q: (Based on Appendix 12B) Reporting an investment at its fair value requires adjusting its carrying…

A: Available for sale securities: These are the securities which are not intended to be sold in the…

Q: Which statement is incorrect regarding contractual cash flows that are solely payments of principal…

A: Contractual cash flows are the exchanges of cash either cash inflows or cash outflows between two…

Q: In your own words, briefly explain a 'qualifying asset' and how we report exchange rate differences…

A: The question is related to Borrowing Cost. As per Borrowing Cost there are two types of Assets 1.…

Q: What does the nominal interest rate parity state? Would the condition be violated if nominal…

A: Nominal Interest rate parity - It states that nominal interest rates across the globe should be the…

Q: Which of the following case would allow the capitalization of  Interest Expense     No Case allows…

A: Interest will be capitalised only when the concerned assets is under preparation for its use in…

Q: When a debt investment at amortized cost is reclassified to FVPL, the difference between the…

A: Debt investments are also known as fixed-income investments in which an investor lends his money to…

Q: According to PAS 23, borrowing costs are capitalized when *   A. They relate directly to the…

A: As per PAS 23, borrowing costs are the interest costs and other costs that are incurred in relation…

Q: Which statement is true when a debt investment at amortized cost is reclassified to FVOCI?   a.…

A: Under the International Financial Reporting Standard (IFRS) 9, reclassification of the financial…

Mortgages

A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.

Mortgage

The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.