FINANCIAL INSTRUMENTS
If the financial asset is measured at fair value through profit or loss, transaction costs directly attributable to the acquisition shall be
Expensed immediately when incurred
In the context of PFRS 13, the term “fair value” is essentially considered as
Exit Price
[DOUBLE POINTS] Get the present value factor of 12% for 4 periods.
0.635518078
CPA Co. purchased bonds at a discount on the open market as an investment. The bonds will be held in order to collect their contractual cash flows. CPA should account for these bonds at
amortized cost
What's my complete name?
Maria Angelina Yap Bucoy
Financial assets classified as FVOCI are initially recognized at
fair value plus transaction costs
The market that has the greatest volume and level of activity for the asset
[DOUBLE POINTS] Get the present value factor of an annuity of 12% for 4 periods.
3.037349347
Financial assets at fair value through profit or loss include
1. Financial assets whose business model for managing the asset are held for “trading”
2. Financial assets that are “designated” on initial recognition as at fair value through profit or loss.
Both 1 and 2
When is my birthday?
October 9, 1994
When an entity reclassifies a financial asset, the initial measurement of the reclassified financial asset is
fair value on reclassification date
PFRS 13 on “Fair Value Measurement” sets the rules on
1. How to measure fair value
2. What to measure fair value
3. When to measure fair value
4. How to account for subsequent changes in fair value
1 only
[DOUBLE POINTS] Given the following data, which of the following markets is the most advantageous market? (Market Price - Transaction Costs - Transport Costs)
Active Market 1 - 150, 15, 22
Active Market 2 - 180, 18, 27
Active Market 3 - 165, 16, 15
Active Market 2
An entity sells its investment in FVPL during the year. The realized gain or loss on the sale is computed as
the difference between the net proceeds received from the sale and the carrying amount of the investment as at the date of sale
What are my favorite colors?
Red and Green
According to IFRS 9, when should a financial instrument be recognized
Only when the entity becomes a party to the contractual provisions of the instrument.
Which of the following are observable inputs used for fair value measurement?
1. Bank prime rate
2. Default rates on loans
3. Financial forecast
1 and 2 only
On January 1, 2022, X company purchased P100,000 bonds at 98. The bonds mature on January 1, 2027 and pay 12% annual interest beginning January 1, 2022. Commission paid on the acquisition amounted to P10,000. The bonds were classified as held for trading securities.
How much was the bonds initially recorded?
98,000
It is the amount at which financial asset is measured at initial recognition minus principal repayments, plus or minus the cumulative amortization using the effective interest method of any difference between the initial amount and the maturity amount, and minus any reduction (directly or through the use of an allowance account) for impairment or uncollectibility
Amortized Cost
What is my favorite book series?
The Arc of Scythe by Neal Shusterman
If the entity’s business model’s objective is to hold assets in order to collect contractual cash flows and cash flows are solely payments of principal and interest on the principal amount outstanding, the financial asset is classified
as financial asset measured at amortized cost
The definition of fair value focuses on __________ because they are a primary subject of accounting measurement.
Assets and Liabilities
Gigi69 has the following assets on December 31, 2021:
Petty cash fund 7,000; Cash in bank 115,000; Notes receivable 80,000; Discount on NR -9,500; Loan receivable 55,000; Loss allowance on LR -7,500
240,000
CPA Co. acquired equity securities of ABC Co. to be held as investments. On initial recognition the equity securities were part of a portfolio of identified financial instruments that are managed together and for which there is evidence of a recent actual pattern of short-term profit-taking. CPA would most likely classify the investment as
FVPL
Who do I like most among the following:
Satoru Gojo - JJK
Tengen Uzui - Demon Slayer
Tamahome - Fushigi Yuugi
Takeshima Kei - Special A
Tamahome