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Toa 333-1

This document discusses key concepts relating to financial instruments under PAS 39 and PFRS 9. It provides sample multiple choice questions to test understanding of topics such as the definition of different types of financial instruments, classification and measurement of investments, and accounting for transaction costs. The key topics covered are the categories of financial assets under PAS 39 and PFRS 9, classification of equity and debt securities, measurement of trading securities, available-for-sale securities, and held-to-maturity securities.

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147 views1 page

Toa 333-1

This document discusses key concepts relating to financial instruments under PAS 39 and PFRS 9. It provides sample multiple choice questions to test understanding of topics such as the definition of different types of financial instruments, classification and measurement of investments, and accounting for transaction costs. The key topics covered are the categories of financial assets under PAS 39 and PFRS 9, classification of equity and debt securities, measurement of trading securities, available-for-sale securities, and held-to-maturity securities.

Uploaded by

CPA
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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TA.333: INVESTMENTS - PNNI L Or 2


Sources: PAS 28IPAS 32/?AS 39/PFRS glApplicable AICPA/Various test banks
\ 1. Under PAS 39, it is pny contract that gives rise to a financial asset of one entity and a financial liability
A
I or equity instrument of another enl.ity.
O Financial instrument c. Hedging instrument
5. Neqotiable instrument d. Debt instrument
It 2. Under PAS 32, it is any contract that evidences
deducting all of its liabilities,
a resrdual interest in the assets of an entity after
'a. Debt instrument C, Hybrid instrument
p Equity instrument d. Compound instrurnent

{\ 3. Under PAS 39, available-for-sale investments are securities


\t' - . a. Considered as a derivative instrument
1 9 - @ Purchased with the intent of selling.in the near future or very soon to generate a profit
from short-term fluctuation in price or dealer's margin
c. Purchased and held indefinitely and will be available to be sold when the need for liquid
funds arises
r / r.- 1! ^ d. With fixed or determinable
ir,: payments and fixed maturity that an enterprise has the
positive intent and ability to hold to maturity
4. Under PFRS 9, which of tfie following ts ffOf a category of financia( assecsT
trf (
-Tt-
- a. Financial assets at fair value through other comprehensive income '
- b. Financial assets at fair value through profit or loss
1r'r 1i] - a. Financial assets at amortized cost
iA Financial assets held for sale
L_".,
t 5. The term 'financial assets at fair value through profit or loss'under PFRS 9 closely corresponds to PAS
.r-'
t 39',.s
19 Trading securities (TS) c.
Held-to-maturity securities (HTM)
b. Available-for sale securities (AFS) d.
Investment in subsidiaries and associates
.: -iomprehensive
6. The term 'financial assets at fair value through other income' under PFRS 9 closely
\, corresponds to PAS 39's
a. Trading securities (TS) c. Held-to-matu rity secu rities (HTM)
Available-for sale securities (AFS) d. Investment in subsidiaries and associates
.'1
O
7. Under PAS 39, equity securities may be classified as
a. TS only c. TS or AFS
b. AFS only @ TS, AFS or HTM
B Un.lfr PAS 39, debt securities may be classified as
\/ @ HTM only c. AFS or HTM
b. TS or HTM d. TS, AFS OT HTM

n 9. Under PAS 39, trading securities are classified as


+i 6l Current assets c. Current or noncurrent assets
V. Noncurrent assets d. Current or noncurrent liabilities
ii 10. Under PAS 39, which may be classif ied as NON-CURRENT at initial recognition?
\r,,
a. TS and AFS d nrS and HTM
b. TS and HTM d. TS, AFS and HTM
11. Und_er PAS 39, transaction costs incurred are expensed in acquiring this type of investment securities.
P @ TS only c. HTM only
b. AFS only d. TS and AFS
ii 12. Transaction costs directly attributable to the acqujeition of a financial asset DO NOT include
\: a. .Fees and commissions to agents LQ Financingtaxesand administrative costs
.b. Levies by regulatory agencies d. Transfer and duties

i.. 13. Subsequent to acquisition, these securities are generally reported at FAIR VALUE under PAS 39.
I b.i rs and AFS c. TS and HTM
b. AFS and HTM d. TS, AFS and HTM
|, 14. Investment in equity securitigs that DO NOT have a quoted market price in an active market and whose
I fair value CANNOJ be reliably estimated is measu;ed at
' a. Cost G, Lower of cost or net realizable value
b. Net realizable value d. Discounted value
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