Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

FAR > Investments > Flashcards

Investments Flashcards

1
Q

How are Available-For-Sale securities recorded on the Balance Sheet?

A

At Fair value as either Current or Non-current assets.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

How are Available-For-Sale security Unrealized G/L treated?

A

Included in OCI (Other Comprehensive Income)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

How are Unrealized G/L for Available-For-Sale securities that are reclassified to Held-to-Maturity or Trading Securities treated?

A

HTM - Stockholder’s Equity
/ Trading Securities - Current Period.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

How are Held-to-Maturity securities recorded on the Balance Sheet?

A

Amortized cost as Current or Non-current assets.

If reclassified as AFS - Unrealized G/L go to Stockholder’s Equity

If reclassified as Trading Securities - Unrealized G/L recognized in Current Period

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

How are Held-to-Maturity securities Unrealized G/L treated?

A

Trick question - Unrealized gains or losses are not applicable because they are HTM

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

How are Trading Securities recorded on the Balance Sheet?

A

At Fair Value as a Current Asset

Unrealized gains/losses are recorded on the Income Statement

If they are reclassified as held-to-maturity or available-for-sale- there is no effect upon transfer.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

How are Trading Securities Unrealized G/L treated?

A

Recorded on the Income StatementIf they are reclassified as HTM or AFS - there is no effect upon transfer.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Type of equity securities

A

“trading securities
available for sale
held to maturity”

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

IFRS classifies marketable securities as..

A

“financial assets at FV through profit or loss

available for sale and held to maturity”

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

When a stock dividend is received…….

A

a memorandum entry is made that reduces the unit cost of all stock owned.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Equity securities-

A

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 prices

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Trading securities are

A

current assets

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Trading securities (definition)

A

debt and equity securities bought and held for the purpose of selling them in the near term

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Available for sale securities are

A

non-current assets

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Available for sale securities-

A

are those securities (both debt and equity) that don’t meet the definitions of the other 2 classifications (held to maturity and trading)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Held to Maturity Securities are

A

non current assets

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Held to maturity securities apply to __________ securities only

A

debt

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Held to Maturity Securities (definition)

A

debt securities are classified as held-to-maturity only if the corporation has the positive intent and ability to hold these securities to maturity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What are the IFRS guidelines for an investment classified as a “financial asset at fair value through profit or loss”

A

classified as held for trading AND asset is designated as an investment at FV through profit or loss using the fair value option

20
Q

How are trading and available for sale securities valued?

A

fair value

21
Q

What is the fair value of a security?

A

It is the market price of the security or what a willing buyer and seller would pay and accept to exchange the security

22
Q

Changes in the fair value of a trading security results in

A

unrealized holding gains and losses

23
Q

Changes in the fair value of available for sale securities results in

A

unrealized holding gains and losses

24
Q

Unrealized holding gains and losses for Trading Securities are included in

A

earnings

25
Q

What statement do unrealized gains/losses from Trading Securities show up on?

A

Income statement

26
Q

Unrealized holding gains and losses for Available for Sale Securities are reported in

A

other comprehensive income

27
Q

IFRS Available for Sale Exception

A

unrealized gain/losses are included in OCI except for foreign exchange gains/losses on A4S DEBT securities (go directly on income statement). Foreign exchange A4S EQUITY securities are included in OCI

28
Q

Held to Maturity Securities are valued at

A

amortized cost

29
Q

Any transfer of a particular security from one group to another group is accounted for at

A

fair value

30
Q

Reclassification FROM trading security

A

the unrealized gain/loss at the date of transfer is already recognized in earnings and shall not be reversed

31
Q

Reclassification TO trading category-

A

the gain/loss at the date of transfer shall be recognized in the earnings immediately

32
Q

Debt security classified as held to maturity transferred to available for sale

A

the gain/loss shall be reported in OCI

33
Q

Debt Security Classified as available for sale transferred to held to maturity

A

gain/loss already reported in OCI and the unrealized holding gain/loss shall be amortized over the remaining life of the security

34
Q

Bond investments which are intended to be held until the maturity date are classified as __________ securities

A

held to maturity

35
Q

Investments in marketable equity securities which a company does not intend to sell in the near term should be classified as

A

available for sale

36
Q

Unrealized gains and losses on available-for-sale securities should be reported as a

A

separate component of other comprehensive income

37
Q

Carrying amount equals

A

amortized cost

38
Q

Long-term held-to-maturity securities are reported at

A

the carrying amount (amortized cost)

39
Q

Short-term held-to-maturity securities are reported at

A

the carrying amount (amortized cost)

40
Q

When an available-for-sale security is determined to be impaired because of an other than temporary decline in fair value below cost- the asset must be written down to? Where is it recognized?

A

the lower fair value. recognized on the income statement

41
Q

Under IFRS unrealized gain/losses on Available-for-sale securities are reported in OCI EXCEPT for

A

foreign exchange gains/losses on A4S debt securities

42
Q

Under IFRS foreign exchange gain loss on Available-for-sale DEBT securities are reported

A

directly on the income statement

43
Q

Under IFRS gains/losses on foreign exchange available -for-sale EQUITY securities are reported

A

in other comprehensive income

44
Q

Where are Realized gains/losses on available-for-sale reported?

A

income statement

45
Q

Unrealized gain/losses on available-for-sale securities are reported

A

in other comprehensive income

46
Q

<p>Consolidated financial statements are under the accounting concept of</p>

A

<p>economic entity</p>

FAR (19 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions