Chapter 11

Question 1

How are investments in equity securities held for trading accounted for?

Answer 1

FVTPL

Question 2

True or False: You can account investments in equity securities either by FTVPL or FVTOCI.

Answer 2

False. There are requirements to follow.

Question 3

What does “held for trading” mean?

Answer 3

Acquired for the purpose of selling or repurchasing it in the near term

Question 4

True or False: If the investment is not held for trading, the election to account the financial asset at FVTOCI is irrevocable. In other words, it cannot be changed to FVTPL later on.

Answer 4

True

Question 5

True or False: You can reclassify currently recognized investment in equity securities at FVTPL to FVTOCI later own.

Answer 5

False.

Question 6

What is the default classification of investment in equity securities?

Answer 6

at FVTPL

Question 7

True or False: Measurement every reporting date for both FVTPL and FVTOCI is at fair value.

Answer 7

True

Question 8

This is also called net income. It is the primary financial performance metric assessed by the users of financial statements.

Answer 8

Profit or Loss

Question 9

This represents other gain or loss that are explicitly excluded by relevant accounting standards in measurement of profit or loss.

Answer 9

Other Comprehensive Income

Question 10

How do we compute for the total comprehensive income?

Answer 10

Profit or Loss + Other Comprehensive Income