IFRS - Financial Instruments Flashcards
What are the categories of financial liabilities identified under International Financial Reporting Standards (IFRS)?
- )Financial liabilities measured at fair value with changes reported through profit/loss, including:
- Liabilities held for trading.
- Derivatives (that are liabilities).
- Financial liabilities for which the fair value option is elected.
- )Other liabilities.
What are the categories of financial assets identified under International Financial Reporting Standards (IFRS)?
- )Financial assets measured at fair value with changes reported through profit/loss
- )Loans and receivables
- )Instruments held to maturity (other than loans and receivables)
- )Instruments available for sale
Under International Financial Reporting Standards (IFRS), how is an impairment of a financial asset determined and reported?
Under IFRS, an impairment loss is determined as the difference between the carrying amount of the asset and its recoverable amount. The amount of any impairment loss is recognized in current income
How are financial assets that are classified as “loans and receivables” measured and reported under International Financial Reporting Standards (IFRS)?
Financial assets classified as “loans and receivables” under IFRS are measured at amortized cost, with related interest and amortization recognized in current income.
What are the major differences between U.S. Gaap and IFRS for Financial Instruments
- )US GAAP does not define loans and receivables, while IFRS does
- ) US GAAP does not define financial assets and liabilities separately, IFRS does
- )US GAAP-Impairment testing completed relative to fair value. IFRS - impairment testing is completed relative to recoverable amount
Under IFRS what is the correct measurement and accounting treatment for Loans and Receivables?
Amortized cost, with interest and amortization recognized in current income
