Exam 12: Financial Instrumentsrecognition and Measurement

An entity can designate any financial asset (or financial liability) to the "fair value through profit or loss" (FVTPL) category on initial recognition provided that this designation results in more relevant information.

(True/False)

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Question 21

Money Entity (ME) obtains a three-year loan from Republic Bank (RB) for $500,000 under normal market terms, with interest payable annually at a variable rate of interest specified as one-year LIBOR plus 200 basis points. To obtain the loan, ME paid RB transactions fees of $5,000. What is the proper way ME should account for this loan?

(Essay)

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Question 22

Which of the following is not a common example of a financial instrument?

(Multiple Choice)

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Question 23

A financial asset meets the qualifications to be reported at amortized cost and not at fair value. Despite this, the financial asset could still be reported at fair value.

(True/False)

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Question 24

On January 1, 20X7, Salvatori Entity (SE) purchased Lovani Entity's (LE) 5-year, 6 percent bonds with a face amount of $100,000 for $95,000. Interest is payable semiannually on June 30 and December 31. Who has a financial asset (and what is the asset) and who has a financial liability (and what is the liability?

(Essay)

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Question 25

Showing 21 - 25 of 25

Exam 12: Financial Instrumentsrecognition and Measurement

An entity can designate any financial asset (or financial liability) to the "fair value through profit or loss" (FVTPL) category on initial recognition provided that this designation results in more relevant information.

Which of the following is not a common example of a financial instrument?

A financial asset meets the qualifications to be reported at amortized cost and not at fair value. Despite this, the financial asset could still be reported at fair value.

Introduction to International Financial Reporting Standards Ifrs

Conceptual Framework for Financial Reporting

Fair Value Measurement

Presentation of Financial Statements

Statement of Cash Flows

Accounting Policies, Estimates, and Errors

Events After the Reporting Period

Related Party Disclosures

Earnings Per Share

Operating Segments

Inventories

Financial Instrumentspresentation

Financial Instrumentsdisclosures

Property, Plant, and Equipment

Intangible Assets

Investment Property

Impairment of Assets

Leases

Revenue From Contracts With Customers

Income Taxes

Employee Benefits

Share-Based Payments

Provisions, Contingent Liabilities, and Contingent Assets

The Effects of Changes in Foreign Exchange Rates

Hyperinflation

Business Combinations

Consolidated Financial Statements

Investments in Associates and Joint Ventures

Joint Arrangements

Disclosure of Interests in Other Entities

Separate Financial Statements

Interim Financial Reporting

Non-Current Assets Held for Sale and Discontinued Operations

Regulatory Deferral Accounts

Borrowing Costs

Accounting and Reporting by Retirement Benefit Plans

Accounting for Government Grants and Disclosure of Government Assistance

Insurance Contracts

Exploration for and Evaluation of Mineral Resources

Agriculture

First-Time Adoption of International Financial Reporting Standard

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