WorksheetsFinancial Instruments Quiz
Total questions: 15
Worksheet time: 9mins
A financial asset is classified as FVOCI when:
It is held for trading.
It has only contractual cash flows and is intended to be sold.
It is bought for long-term only.
It doesn’t generate any cash flows.
All equity instruments must be measured at historical cost under MFRS 9.
True
False
Under MFRS 9, credit loss is recognized only after a credit event has occurred.
True
False
Company XYZ purchases shares for RM50,000, classified as Fair Value Through Profit or Loss (FVTPL). The value increases to RM58,000 at year-end.
(a)
What is the main purpose of MFRS 9?
To replace IFRS 7
To increase company profits
To improve recognition and measurement of financial instruments
To evaluate management performance
Company ABC purchases a bond worth RM100,000 at an interest rate of 5% per annum, maturing in 3 years. The bond is classified as held to collect contractual cash flows.
(a)
Bonds held solely to collect contractual cash flows are classified at amortised cost.
True
False
What is main measurement categories are there for financial assets under MFRS 9?
i) Amortised cost
ii) Fair value through OCI ( FVOCI)
iii) Historical cost
iv) Fair value through P&L ( FVTPL)
v) Fair value
i,iii and v
ii,iii and iv
i,ii and iv
ii,iv and v
Company A lends RM20,000 to an employee at an effective interest rate of 6% annually. Total repayment after one year is RM21,200.
(a)
The classification of financial assets under MFRS 9 depends on the business model and contractual cash flow characteristics.
True
False
Under MFRS 9, what basis is used for recognizing credit losses?
Incurred loss model
Realized gain model
Expected credit loss model
Full recovery model
MFRS 9 replaced MFRS 139 as the primary standard for financial instruments.
True
False
A company receives RM4,000 in dividends from an equity investment classified as FVOCI. The fair value of the investment increases from RM40,000 to RM43,000.
(a)
Derivatives are usually classified as:
Amortised cost
FVOCI
FVTPL
Cost model
A financial asset is classified at amortised cost if:
Held for trading
Held solely to collect contractual cash flows
Held for short-term interest
Cannot be sold
