Chapter 8 - Other Investments Flashcards
1
Q
What is the condition that a sale and repurchase agreement is regarded as a sale
A
If the repurchase is at market price because there is now some risk being introduced for the counterparty
2
Q
Equation to value property using the investment method
A
Market value = net income * (1/yield)
3
Q
How are assets used for proprietary trading classified
What is their initial recognition
What about their subsequent measurement
Can they be impaired
A
Classified as FVTPL since they are held for trading
Initially recognized at FV with transaction costs recognized separately through P/L
Subsequent measurement at FV with gains/losses going to P/L
Not subject to impairment since they are already at FV
