How shall an entity subsequently measure financial liabilities?  Is IFRS measurement of financial liabilities similar to that of U.S. GAAP? Also briefly describe the requirements regarding an option to designate a financial liability at fair value through profit and loss. Q: Does U.S. GAAP allow fair value option for financial assets and liabilities? Q; What is “own credit” issue related to financial liabilities measured at fair value through profit and loss? Q: How does IFRS 9 address this “own credit” issue?

Q: How is a financial statement under IFRS different from

A: Solution- In IFRS you need to provide Other Comprehensive Income Statement also in addition to…

Q: The principle of conservatism is concerned with Oa. the company's procedures for recording…

A: conservatism principle is one of the basic principle of accounting that provides guidance on how…

Q: The use of fair value to account for debt investments allows for more relevance of accounting…

A: Step 1 Fair valuation concept is universally accepted by all of the worldwide regulating accounting…

Q: When fair value is used in measuring assets in the financial statements, current GAAP provides…

A: (1) Full form of GAAP - Generally Accepted Accounting Principles. (2) It is a collection of the…

Q: Depending on the business model for managing financial assets, an entity shall classify financial…

A: A financial asset is a liquid asset with a contractual right or ownership claim as its source of…

Q: Which of the following statements is true?(a) The fair value option requires that some types of…

A: Answer:   Option c.

Q: Discuss the primary differences between U.S. GAAP and IFRS with respect to investments.

A: GAAP: It is the standard guidelines that are commonly used for financial reporting. These guidelines…

Q: Which of the following loan commitments are within the scope of IPFRS 9? * Loan commitments that the…

A: the following loan commitments are within the scope of IPFRS 9:: Loan commitments that can be…

Q: The concept of capital maintenance chosen by an entity shall determine the accounting model used in…

A: The capital maintenance concept states that a corporation produces a profit only when all operating…

Q: Which of the following assets appears on the balance sheet at fair value? Equipment, Land,…

A: Fair value refers to the actual amount paid in an open market to purchase the assets. Fair value…

Q: Investments in debt instruments are financial assets because they are   A. Equity instruments of…

A: Solution: Investments in debt instruments are financial assets because they are "Contractual rights…

Q: Marketable securities are accounted for at their current fair value using mark-to-market accounting.…

A: Mark-to-Market accounting is an accounting practice that helps to adjust the value of an asset on…

Q: How does PFRS 9 distinguish between the measurement methods to be used in the standard? * By…

A: By reviewing the business model of each entity and the contractual cash flow characteristics of the…

Q: Which statement is incorrect regarding contractual cash flows that are solely payments of principal…

A: IFRS 9 talks about solely payments of principal and interest (SPPI).

Q: Which of the following entity is involved in regulating the financial sector Ⓒa PFRDA Ob. SEBI OC…

A: The financial sector is a sector that is responsible for providing financial services to the…

Q: under the conceptual framework for internationai financial reporting a non-contraling interest fits…

A: Non-controlling interest Non-controlling interest is also referred to as the minority interest…

Q: investments in debt instruments are financial asset

A: First option is wrong because debt instruments are not equity instruments. Second option is wrong…

Q: Which of the following shall be taken to profit or loss for investments measured at fair value…

A: Other Comprehensive Income - This statement includes all the income which is not earned yet by the…

Q: According to CF of IASB Determining how an asset or liability should be measured should ideally be…

A: IASB stands for International accounting standard board. It is a privately-owned body set up to…

Q: Which of the following shall an entity disclose for loans payable recognized at the end of the…

A: Disclosures about conditions that existed at the end of the reporting period should be updated in…

Q: What is the principle for recognition of a financial asset in PFRS 9? A. A financial asset is…

A: Financial asset is a form or type of assets under which rights are obtained to receive future…

Q: The means by which individuals hold their claims on real assets in a well-developed economy are A)…

A: A financial asset is a liquid asset which, from either a legal right or ownership assertion,…

Q: Which statement is incorrect regarding classification of financial assets?   a. An entity can…

A: Financial Assets: The financial assets refers to contractual agreement between two parties for a…

Q: In relation to investments and fair value, what are the two categories of investments that companies…

A: Investment: It refers to the process of using the currently held excess cash to earn profitable…

Q: Which of the following statements best describes the term "liability"? * a. An excess of equity over…

A: The balance sheet represents the financial position of the business with assets and liabilities on a…

Q: What is the principle for recognition of a financial asset in PFRS 9? Group of answer choices: A…

A: Correct answer is D. A financial asset is recognized when, and only when, the entity becomes a party…

Q: investments in equity instruments are financial assets because they are a) cash equivalents b)…

A: Financial assets are the assets that are derived from contractual claims. It is a more liquid asset…

Q: Under the fair value option for debt investment, entities report all changes in fair value in…

A: Lets understand the basics. Fair value option means a option in which change in fair value in debt…

Q: The scope of conceptual framework for financial reporting concerned with Which of the following…

A: THE SCOPE OF CONCEPTUAL FRAMEWORK FOR FINANCIAL REPORTING DEALS WITH :  1. THE OBJECTIVE OF GENERAL…

Q: Which statement is incorrect regarding contractual cash flows that are solely payments of principal…

A: Contractual cash flows are cash flows either cash inflows or cash outflows between two contracting…

Q: Demonstrate how to identify and account for equity investments classified forreporting purposes as…

A: Equity investments are those investments that are invested in a company through purchase of shares…

Q: Which statement is incorrect regarding contractual cash flows that are solely payments of principal…

A: Contractual cash flows are the exchanges of cash either cash inflows or cash outflows between two…

Q: Depending on the business model for managing financial assets, an entity shall classify financial…

A: A financial  asset can  be measured  at Fair value  through  profit or loss

Q: How are the balance sheet and income statement affected by fair value accounting?

A:

Q: If an entity has elected to use the fair value option for a financial liability; a. It is measured…

A: Liabilities: Liabilities are the obligations of an organization that an organization must pay in…

Q: A formal obligation that entitles one party to receive payments and/or a share of assets from…

A: Sometimes at the time of purchase or sale of asset, one party exchanges something with another…

Q: What are comparative financial statements? What issue is introduced when entities present…

A: Comparative financial statement= This is the complete set of financial statements that the business…

Q: According to IFRS, which accounting policy may an entity apply to measure investment property in…

A: Investment property means any land or building which is neither held for sale nor for the purpose of…

Q: instrument conditional on the holder (the counterparty) exercising its contractual obligation to…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: In accordance with AASB 9, the recognition of a financial asset or financial liability will be…

A: Following is the answer to given question

Q: What are some steps taken by both the FASB and IASB to move to fair value measurement for financial…

A: International Financial Reporting Standards: IFRS (International Financial Reporting Standards) is a…