FINANCIAL INSTRUMENTS

The following are financial instruments..

• Equity

• Financial Liability

• Property, plant and equipment

• Financial Assets

The following are examples of equity except

• Ordinary share capital

• Irredeemable preference shares

• Equity shares

• Convertible loan stock

The following are examples of financial assets except

• Trade receivables

• Investment in bonds

• Investment in equity

• Inventory

The following are examples of financial liabilities

• Trade payables

• Issue of bonds

• Issue of loan stock

• cash

The following standards governs the definition of financial instruments

• IFRS 9

• IFRS 7

• IAS 32

• IAS 39

In the year 2011, IAS 39 was replaced by

• IFRS 7

• IFRS 3

• IFRS 5

• IFRS 9

IFRS 9 governs the recognition and measurement rules of financial instruments.

• false

• true

Equity will not subject to subsequent measurement by the entities , as it will be observed by shareholders.

• True

• False

Transaction cost incurred in the process of issuing equity should be debited to P/L as expenses.

• False

• true

Generally for financial liability, the amount charged as finance costs in P/L should be based on

• Coupon rate

• EIR

• Cost of capital

• General borrowing rate