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Unformatted text preview: lue through other comprehensive income.
D. Available-for-sale. 107.Under IFRS No. 9, which is not a category for accounting for investments?
A. Fair value through profit and loss.
B. Fair value through other comprehensive income.
D. Amortized cost.
108.Which of the following is not true about the "fair value through profit and loss" approach for accounting
for investments under IFRS?
A. Allowed under both IAS No. 39 and IFRS No. 9.
B. Includes unrealized gains in earnings.
C. Requires reclassification of realized gains from other comprehensive income.
D. Not vulnerable to other-than-temporary impairments.
109.Which of the following is not true about the "fair value through other comprehensive income" approach
for accounting for investments under IFRS No. 9?
A. Allowed for debt investments.
B. Includes unrealized gains in other comprehensive income.
C. Does not require reclassification of realized gains from other comprehensive income.
D. Allowed for equity investments.
110.Wang Corporation purchased $100,000 of Hales Inc. 6% bonds at par with the intent and ability to
hold the bonds until they matured in 2017, so Wang classifies its investment as held to maturity.
Unfortunately, a combination of problems at Hales and in the debt market caused the fair value of the
Hales investment to decline to $70,000 during 2013. Wang calculates that, of the $30,000 drop in fair
value, $10,000 of it relates to credit losses and $20,000 relates to non-credit losses. If Wang accounts for
the Hales bonds under IFRS, before-tax net income for 2013 will be reduced by:
111.If the fair value of a held-to-maturity investment declines for a reason that is viewed as "other than
temporary" because the company intends to sell the investment:
A. The investment is not written down to fair value.
B. The investment is written down to fair value, and the entire impairment loss is recognized in net
C The investment is written d...
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- Spring '09
- Balance Sheet