Which of the following loan commitments are within the scope of IPFRS 9? * Loan commitments that the entity designates as financial liabilities at fair value through profit or loss Loan commitments that can be settled net in cash or by delivering or issuing another financial instrument Commitments to provide a loan at a below-market interest rate
Q: nized as a financial asset intended to collect contractual cash flows and also to sell the bonds in…
A: Interest income: Interest income is that the amount paid to an entity for lending its cash or…
Q: Loans made to closely held firms should have a. collateral b. relationship pricing c. pro-forma…
A: Firm require funds to operate a business. There are many sources to raise funds one of them is loan.…
Q: The use of fair value to account for debt investments allows for more relevance of accounting…
A: Step 1 Fair valuation concept is universally accepted by all of the worldwide regulating accounting…
Q: What type of financial institutions may offer the services for reception and transmission of orders…
A: Order receipt and transmission refer to receiving a purchase or sale order from a customer and…
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: What are the measurement issues in the IFRS16 Leases standards.? a)Which basis of measurement is…
A: In the year 2016, The International Accounting Standards Board (IASB) published IFRS 16 - LEASES.…
Q: Which of the following costs may not be eligible for capitalization as borrowing costs under PAS 23?…
A: The costs that an entity incurs with regard to the funds borrowed are referred to as the borrowing…
Q: Which of the following statements regarding assignments are true? A. Buying a share in a loan…
A: Loan assignment involves assigning the rights of the loan agreement to a new lender.
Q: Which of the following statements is true?(a) The fair value option requires that some types of…
A: Answer: Option c.
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: financial asset at fair value through profit or loss a. a non derivative equity instrument b. all…
A: Solution: The following may be classified as a financial asset at fair value through profit or loss:…
Q: Perpetual debt instruments a. Are compound financial instruments b. Are derivative financial…
A: Perpetual debt instruments seem to be debt funds that do not have an expiration date. The issuer…
Q: Marketable securities are accounted for at their current fair value using mark-to-market accounting.…
A: Mark-to-Market accounting is an accounting practice that helps to adjust the value of an asset on…
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: 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: How does PFRS 9 distinguish between the measurement methods to be used in the standard? * By…
A: By reviewing the business model of each entity and the contractual cash flow characteristics of the…
Q: . Which of the following statements is true? a. The fair value option requires that some types of…
A: The fair value option allows, but does not require, that some types of financial instruments be…
Q: Interest revenue for debt investments at fair value through other comprehensive income is computed…
A: When the debt instruments are bought at off market terms, such instruments are measured at their…
Q: 34. According to GAM for NGAs, interest revenue is recognized On a time proportion basis using…
A: Interest revenue is the profit earned by a company from any investments it makes or debt it holds.
Q: Transaction costs incurred the effective interest rate to be used for amortization of an investment…
A: Costs incurred during buying and selling any good or a service are generally referred to as…
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: under the conceptual framework for internationai financial reporting a non-contraling interest fits…
A: Non-controlling interest Non-controlling interest is also referred to as the minority interest…
Q: Which of the following may be classified as a financial asset at fair value through profit or loss?…
A: Solution: The following may be classified as a financial asset at fair value through profit or…
Q: Which of the following are exceptions for PFRS 9 application? CHOICES Contracts to buy or sell…
A: The following are exceptions for PFRS 9 application?:: Contracts that were entered into and…
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: 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: Under a 75% LTV term loan structure, when is the balance of funds released by the lender to the…
A: Borrowing to purchase an asset: An asset can be purchased by taking a loan from a financial…
Q: Which of the following shall an entity disclose for loans payable recognized at the end of the…
A: Disclosures about conditions that existed at the end of the reporting period should be updated in…
Q: Which statement is incorrect regarding classification of financial assets? a. An entity can…
A: Financial Assets: The financial assets refers to contractual agreement between two parties for a…
Q: Compare and contrast collateralized debt obligations (CDOs) and structured investment vehicles…
A: Points Contrast Collateralized Debt Obligations (CDOs) Structured Investment Vehicles (SIVs)…
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: Which of the following is the second option in measuring the equity instrument issued to extinguish…
A: ●Which of the following is the second option in measuring the equity instrument issued to extinguish…
Q: Question 14 Which statement is incorrect regarding contractual cash flows that are solely payments…
A: Question 14 Which statement is incorrect regarding contractual cash flows that are solely payments…
Q: g the investment is appropriately recognized as a financial asset intended to collect contractual…
A: Interest income: Interest income is that the amount paid to an entity for lending its cash or…
Q: Investment in debt instruments classified as FA@FVTOCI recognizes which of the following in OCI? a)…
A: (a) Changes in fair value is the correct answer.
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: The scope of conceptual framework for financial reporting concerned with Which of the following…
A: THE SCOPE OF CONCEPTUAL FRAMEWORK FOR FINANCIAL REPORTING DEALS WITH : 1. THE OBJECTIVE OF GENERAL…
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 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 investment in debt securities accounted for at fair value through other comprehensive income, the…
A: The income statement includes revenues and expenses for the company.
Q: The track record with other creditors and suppliers is evaluated in which of the 5 Cs of Credit?…
A: The term "5 Cs of Credit" refers to the five primary elements used to establish a prospective…
Q: instrument conditional on the holder (the counterparty) exercising its contractual obligation to…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Under what circumstances under PFRS 9 can an entity classify financial assets that meet the…
A: PFRS 9 includes 3 main components. (1) Requirements for recognition, Classification of Financial…
Q: In accordance with AASB 9, the recognition of a financial asset or financial liability will be…
A: Following is the answer to given question
Q: 2. Which of the following correctly matches the classification of the debt investment with its…
A: IAS 32 and IAS 39, the previous IFRS financial instruments accounting standards, classified debt…
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…
Q: in the 5 c's of stracturing a loan approval, what fundamental piece do you think it ignore or fall…
A: Long-term loan: It's a debt instrument that a company uses to raise money. The collateral is…
Step by step
Solved in 2 steps
- What relevant assertion should be used to record loans receivable net of an allowance for loan losses when allowance should adequately cover any estimated losses inherent in the loan portfolio but not excessive losses? a. Existence or occurrenceb. Valuation or allocationc. Cutoffd. Rights or obligationsWhich one of the following is NOT the standard covenants in loan contracts? a. Audit fee b. Actions in case of default c. Government charges d. Fees and interest ratesunder the conceptual framework for international financial reporting a non-controling interest fits the definition of: Select one: O. an asset. b. an equity item. c. a liobility. d. an expense.
- 34. According to GAM for NGAs, interest revenue is recognized On a time proportion basis using effective interest method On a straight line basis In accordance with the substance of the relevant loan agreement When the entity’s right to receive payment is established.Fair value is used to value which of the following balance sheet accounts? a. Prepaid expenses; patents; property, plant, and equipment b. Capital lease obligations, bonds payable c. Receivables net of allowance for doubtful accounts d. Debtsecurities available for sale, trading securitiesThe indenture is a contract between the issuer and lenders that does all the following EXCEPT ______. a. specify the manner in which the principal must be repaid b. give management's expectations about return of the proceeds c. list any restrictive covenants d. detail the nature of the debt issue
- Explain Issuance of loans to unworthy entities with examplesUse IFRS 9 to determine how to subsequently measure the following financial assets. Three choices of measurement basis are amortized cost, fair value through other comprehensive income, and fair value through profit or loss. Provide justification for your choice. Long-term loans that are held for collecting contractual cash flows till their maturities, but may be subsequently sold if the loans’ credit risk substantially increases. Investments in bonds that are held for collecting contractual cash flows, and may be subsequently sold to re-invest the cash in financial assets with a higher return. Subprime (high risk) mortgage loans that were originated by a mortgage-broker firm that always sell these loans to banks right after their origination. Forward contracts that an EU bank purchased to hedge the exposure to changes in fair value of US$-denominated loans. Investment in bonds that are convertible into common stock of the bond issuer. Investment in bonds that pay a variable market…Which of the following is an arrangement by which one party promises to pay a sum of money to policyholder as protection against an adverse or unfavorable occurrence of event? a. Short Term Loans b. Fixed Deposit c. Insurance d. Investment
- in relation to receivables, an entity is required by PFRSs toa. All of theseb. disclose any receivables pledged as collateralc. classify receivables as current and non-current in the statement of financial positiond. disclose all significant concentration of credit risk arising from receivablesHow shall an entity subsequently measure financial liabilities? Is IFRS measurement of financial liabilities similar to that of U.S. GAAP? Also briefly describe the requirements regarding an option to designate a financial liability at fair value through profit and loss. Q: Does U.S. GAAP allow fair value option for financial assets and liabilities? Q; What is “own credit” issue related to financial liabilities measured at fair value through profit and loss? Q: How does IFRS 9 address this “own credit” issue?Discuss in brief the types of collateralized debt Obligation. Please explain in details.