NEW
Font size
WorksheetsIFRS Are we good to go - IFRS 9 W11
Total questions: 10
Worksheet time: 21mins
Which of the following are not classified as financial instruments ?
Share options
Intangible assets
Trade receivables
Redeemable preference shares
A 5% loan note was issued on 1 April 2020 at its face value of $20 million. Direct costs of the issue were $500,000. The loan note will be redeemed on 31 March 2023 at a substantial premium. The effective interest rate applicable is 10% per annum.
At what amount will the loan note appear in the statement of financial position as at 31 March 2021?
21,000,000
20,450,000
22,100,000
21,495,000
Which of the following is not part of the definition of a financial instrument?
Financial asset
Financial liability
Financial income
Equity instrument
Entity A enters into a contract to purchase gold bullion from Entity B. Which of the following would result in the contract being considered a financial instrument?
If Entity A pays cash to Entity B upon receipt of the gold bullion.
If Entity A and Entity B agree to settle the contract net in cash.
If Entity B recognises Entity A as a debtor when the gold bullion is transferred.
If the contract includes a clause to account for the exchange of gold bullion as a financial asset.
Entity A purchased a financial asset that would give rise to cash flows that are not solely related to principal and interest repayments. The purchase price was $30,000 and the transaction costs related to the purchase was $1,000. The fair value on the date of purchase was $31,000. On this date, Entity A anticipated that the fair value of the financial asset would increase to $32,000 during the financial period.
Which of the following amounts would be correct upon initial recognition?
29,000
30,000
31,000
32,000
Which of the following is an example of a non-financial item?
Cash
Debtors
Creditors
Inventory
How does IFRS 9 Financial Instruments require investments in equity instruments to be measured and accounted for (in the absence of any election at initial recognition)?
Fair value with changes going through profit or loss
Fair value with changes going through other comprehensive income
Amortised cost with changes going through profit or loss
Amortised cost with changes going through other comprehensive income
Entity A issued 500 notes each worth $100 on 1 January 2016. The notes mature on 31 December 2019. The effective interest rate is 8% and the coupon rate payable in arrears is 6% per annum. What is the closing balance of the notes on 31 December 2016?
39,690
41,981
47,423
46,688
IFRS 9 uses a mixed model approach to measurement. Which of the following measurement methods are acceptable under IFRS 9?
Amortised cost and fair value
Amortised cost, fair value and depreciated replacement cost
Amortised cost, fair value and net realisable value
Amortised cost, fair value and replacement cost
Under what circumstances can the profit or loss on an equity instrument carried at fair value be dealt with in Other Comprehensive Income?
When the equity investment is available for sale
When the profit or loss is capable of recycling
When the equity investment is held for trading
When the equity investment is not held for trading
