WorksheetsFinancial Assets and Equity Investments Worksheet Extraction
Total questions: 15
Worksheet time: 9mins
A debt instrument at FVPL is initially recorded at purchase price plus transaction cost.
True
False
Financial assets at FVTPL are classified as part of current assets while investments at FVOCI are generally classified as non-current assets.
True
False
The designation as to whether the equity investment is at FVPL or FVOCI depends solely upon whether the securities are trading or nontrading.
True
False
If an investor makes an election to designate the non-trading equity security investment as at FVOCI, the investment shall be recorded upon acquisition at purchase price minus directly attributable transaction costs.
True
False
Unrealized holding gains and losses which are taken to profit or loss are from securities that are classified as Trading securities and FA at FVTPL.
True
False
An equity security is any instrument that represents a creditor relationship with an entity.
True
False
An unrealized holding gain or loss on a company's equity investments at fair value through other comprehensive income should be reflected in the current year financial statements as income or loss in the statement of comprehensive income.
True
False
Equity investments at fair value are no longer tested for impairment.
True
False
Changes in fair value of Trading securities shall be ignored.
True
False
Equity securities do not include redeemable preference shares.
True
False
Which is not a category of financial assets?
Financial assets at fair value through profit or loss
Financial assets at fair value through other comprehensive income
Financial assets held for sale
Financial assets at amortized cost
A debt investment shall be measured at FVOCI
when the debt investment is held for trading
when the debt investment is not held for trading
by irrevocable designation
when the business model is to collect contractual cash flows and also to sell the financial asset
Equity investments irrevocably accounted for at FVOCI are
nontrading investments of less than 20%
Trading investments of less than 20%
Investments of between 20% and 50%
Investments of more than 50%
An instrument representing ownership shares and the right to acquire ownership shares is
debt security
equity security
marketable security
shareholders’ equity
These investments are initially recorded at purchase price plus transaction costs, except
financial assets at fair value through profit or loss
financial assets at fair value through OCI (by election)
financial assets at fair value through OCI (mandatory)
Financial assets at amortized cost
