INATRE MIDTERM RANDOM SHIT Flashcards
Transaction cost are ___________ in the measurement of your note payable.
Included
If the note payable is irrevocably designated at fair value through profit or loss, the transaction costs are _________________ immediately.
expensed
The amortized cost of note payable is the amount at which the note payable is measured initially:
A. Minus principal repayment
B. Plus or minus the cumulative amortization using the ________________ method of any difference between the face amount and present value of the note payable.
effective interest
The difference between the face amount and present value is either ___________ or ____________ on the issue of note payable.
discount, premium
When the note payable is issued solely for cash, the present value is _______ to the cash proceeds.
equal
When the property or noncash asset is acquired by issuing a promissory note which is interest bearing, the property or asset is recorded at the ___________________.
purchase price
When a non-interest bearing note is issued for property, the property is recorded at the ___________ of the property.
cash price
PFRS 9, Paragraph 4.2.2 provides that at inital recognition a note payable may be ___________________________ as at fair value through profit or loss.
irrevocably designated
PFRS 9, Paragraph 5.7.7, provides that the gain or loss on financial liability designated at fair value through profit or loss shall be recognized either in other __________________________ or profit or loss.
comprehensive income
_______________ does not include market risks.
Credit risk
Under fair value option any _____________________is recognized as outright expense.
transaction cost
The objective of the creditor in a _____________________ is to make the best of a bad situation or maximize the recovery of investments.
debt restructuring
PFRS 9, 3.3.1, _____________ is treated as a derecognition of a financial liability or extinguishment of an obigation.
Asset swap
The difference between the carrying amount of the financial liability and the consideration given shall be recognized in ___________________.
profit or loss
Dacion en pago arises when _________________________is offered by the debtor in full settlement of the debt.
mortgaged property
If the balance of obligation including accrued interest and other charges is MORE than the carrying amlunt of the property mortgaged, the difference is _________on extinguishment of debt.
gain
If the balance of obligation is LESS than the carrying amount of the property mortgaged, the difference is _______ on extinguishment of debt.
Loss
____________ is the issuance of share capital by the debtor to the creditor in full or partial payment of an obligation.
Equity swap
_________________ may involve a reduction of interest rate foregiveness of unpaid interest or a moratorium on interest.
Interest concession
To be a ____________ , a contract must convey the right to control the use of an identified asset.
lease
All leases shall be accounted for by lessee as a ____________ lease under the new lease standard.
finance
A lease that contains a purchase option is not a ____________ lease.
short-term
An is a lease that does not transfaer substantially all the risk and rewards incidental to ownership of an underlying asset.
operating lease
Under USA GAAP, major part means at least ____ of the economic life of an asset.
75%
Under USA GAAP, substantially all means at least ___ of the fair value of the leased asset.
90%
If the lease payments cannot be allocated reliably between the two elements, the entire lease is classified as a __________lease, unless it is clear that both elements are operating leases.
finance
A direct financing lease recognizes only ______________.
interest income
A ___________ lease recognises interest income and gross profit on sale.
sales type
The initial direct cost would effectively spread the _______________ over the lease term and reduce the amount of interest income.
initial direct cost
Gross investment in the lease is equal to the gross rentals for the entire lease term plus the absolute amount of the ______________whether guaranteed or unguaranteed,
residual value
_________________-is equal to the net investment in the lease (present value of lease payments or fair value of the asset), whichever is lower.
Sales revenue
Initial direct cost is _____________________________ in a sales type lease as component of cost of goods sold.
expensed immediately
The present value of the unguaranteed residual value is______________ from the cost of the underlying asset in computing cost of goods sold.
deducted
The unguarateed residual value is ___________________as lease payment as far as the lessee is concerned.
not considered
The carrying amount of the lease receivable is __________ to the balance of the lease receivable ________ the unearned interest income.
equal, minus
A _____________________ transaction may occur when the seller-lessee is experiencing cash flow or financing problem or because there are tax advantages in such arrangement in the lessee’s jurisdiction
sale and leaseback
In sale and leaseback transaction there is ______________transfer of asset.
no physical
Is an arrangement whereby one party sells an asset to another party and then immediately leases the asset back from the new owner.
Sale and leaseback
