FAR_3_SECTION 1

Question 1

Debt and equity that are brought and held principally for the purposes of selling them in the near term

Answer 1

Trading Securities(Current Asset)

Question 2

Securities(both debt and equity) can be reported as either current assets or non-current assets, depending on the intent of the corporation

Answer 2

Available-for-sale Securities

Question 3

It is debt securities only,the corporation has the positivie intent and ability to hold these securities to maturity

Answer 3

Held-to-Maturity Securities

Question 4

Security s/b classified into one of three categories, based on the intent of the company

Answer 4

1. Trading Securities
2. Available-for-sale Securities
3. Held-to-Maturity Securities

Question 5

Securities that represent an ownership interest in an enterprise or the right to acquire or dispose of an ownership interest in an enterprise at fixed or determinable price.

Answer 5

Equity Securities

Question 6

Equity securities may be represented by

Answer 6

a. Ownership shares
b. Rights to acquire ownership shares
c. Rights to dispose of ownership shares

Question 7

Trading and available -for-sale securities must be reported at

Answer 7

Fair Value

Question 8

Unrealized holding gains and losses on trading securities are included in

Answer 8

Earning

Question 9

Marketable security investments are classified as follow under IFRS

Answer 9

1. Financial assets at FV through profit or loss(trading)
2. Available for sales
3. Held to maturity

Question 10

Financial assets at FV through profit of loss must meet either of the following condition

Answer 10

1. Classifed as held for trading

2. Asset is designated as an investment at FV through profit or loss using the FV option

Question 11

Unrealized gains and losses on available for sales securities(including current asset) are reported in

Answer 11

Other Comprehensive Income

Question 12

Under IFRS, foreign exchange gains/losses on available for sale EQUITY secuirties are included in

Answer 12

Other Comprehensive Income

Question 13

Under IFRS, foreign exchange gains/losses on available for sale DEBT secuirties are reported directly to

Answer 13

Income Statement

Question 14

Under IFRS, unrealized gains and losses on available for sale securities are reported in

Answer 14

Other comprehensive income

Question 15

Held-to-Maturity Securities are valued at

Answer 15

Amortized Cost

Question 16

Results in a realized gain or loss and is reported on the income statement for the period

Answer 16

Sale of Security