Financial Liability

FR – May 2016 – L2 – Q7b – Financial Instruments (IAS 32, IFRS 9)

Calculate amortised cost and fair value of a financial liability issued by Anifowose Plc.

Question

Anifowose Plc issued a debt instrument at its fair value of N100 million on January 1, 2013. The debt instrument is to mature in 2017. It has a principal amount of N125 million and carries a fixed interest rate of 4.72%, which is paid annually. The effective interest rate is 10%, and on December 31, 2015, it had a fair value of 105 for every N10 nominal value. The company makes up its accounts to December 31 every year.

Required:

i. Show your computation schedule for the amortised cost of the financial liability up to December 31, 2015, on the assumption that the financial liability is valued at amortised cost.

ii. What is the value of the financial liability as of December 31, 2015, if the fair value option is adopted by Anifowose Plc?

Answer

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Tags: Amortised Cost, Fair Value, Financial Liability, Financial Reporting, IAS 39
Level: Level 2

Topic: Financial Instruments (IAS 32, IFRS 9)
Series: MAY 2016

CR – Nov 2018 – L3 – Q2e – Financial instruments: Recognition and measurement Corporate reporting

Discuss the accounting treatment of a variable rate loan commitment under IFRS 9 in the financial statements of Garu-Tempane Ltd.

Question

Garu-Tempane Ltd had the following transaction during the year ended 31 December 2018:

The entity entered into a contractual commitment to make a variable rate loan to a customer beginning on 1 January 2019 for a fixed period at 1% less than the rate at which the entity (not the customer) can borrow money.

Required:
Advise the directors of Garu-Tempane Ltd on the accounting treatment of the above transaction under IFRS 9: Financial Instruments for the year ended 31 December 2018.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Financial Liability, IFRS 9, Loan Commitment, Variable Rate Loan
Level: Level 3

Topic: Financial instruments: Recognition and measurement Corporate reporting
Series: NOV 2018

FR – May 2016 – L2 – Q7b – Financial Instruments (IAS 32, IFRS 9)

Calculate amortised cost and fair value of a financial liability issued by Anifowose Plc.

Question

Required:

i. Show your computation schedule for the amortised cost of the financial liability up to December 31, 2015, on the assumption that the financial liability is valued at amortised cost.

ii. What is the value of the financial liability as of December 31, 2015, if the fair value option is adopted by Anifowose Plc?

Answer

Find Related Questions by Tags, levels, etc.

Tags: Amortised Cost, Fair Value, Financial Liability, Financial Reporting, IAS 39
Level: Level 2

Topic: Financial Instruments (IAS 32, IFRS 9)
Series: MAY 2016

CR – Nov 2018 – L3 – Q2e – Financial instruments: Recognition and measurement Corporate reporting

Discuss the accounting treatment of a variable rate loan commitment under IFRS 9 in the financial statements of Garu-Tempane Ltd.

Question

Garu-Tempane Ltd had the following transaction during the year ended 31 December 2018:

Required:
Advise the directors of Garu-Tempane Ltd on the accounting treatment of the above transaction under IFRS 9: Financial Instruments for the year ended 31 December 2018.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Financial Liability, IFRS 9, Loan Commitment, Variable Rate Loan
Level: Level 3

Topic: Financial instruments: Recognition and measurement Corporate reporting
Series: NOV 2018

Question Tag: Financial Liability

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FR – May 2016 – L2 – Q7b – Financial Instruments (IAS 32, IFRS 9)

Calculate amortised cost and fair value of a financial liability issued by Anifowose Plc.

CR – Nov 2018 – L3 – Q2e – Financial instruments: Recognition and measurement Corporate reporting

Discuss the accounting treatment of a variable rate loan commitment under IFRS 9 in the financial statements of Garu-Tempane Ltd.

FR – May 2016 – L2 – Q7b – Financial Instruments (IAS 32, IFRS 9)

Calculate amortised cost and fair value of a financial liability issued by Anifowose Plc.

CR – Nov 2018 – L3 – Q2e – Financial instruments: Recognition and measurement Corporate reporting

Discuss the accounting treatment of a variable rate loan commitment under IFRS 9 in the financial statements of Garu-Tempane Ltd.

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Question Tag: Financial Liability

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FR – May 2016 – L2 – Q7b – Financial Instruments (IAS 32, IFRS 9)

Calculate amortised cost and fair value of a financial liability issued by Anifowose Plc.

You're reporting an error for "FR – May 2016 – L2 – Q7b – Financial Instruments (IAS 32, IFRS 9)"

CR – Nov 2018 – L3 – Q2e – Financial instruments: Recognition and measurement Corporate reporting

Discuss the accounting treatment of a variable rate loan commitment under IFRS 9 in the financial statements of Garu-Tempane Ltd.

You're reporting an error for "CR – Nov 2018 – L3 – Q2e – Financial instruments: Recognition and measurement Corporate reporting"

FR – May 2016 – L2 – Q7b – Financial Instruments (IAS 32, IFRS 9)

Calculate amortised cost and fair value of a financial liability issued by Anifowose Plc.

You're reporting an error for "FR – May 2016 – L2 – Q7b – Financial Instruments (IAS 32, IFRS 9)"

CR – Nov 2018 – L3 – Q2e – Financial instruments: Recognition and measurement Corporate reporting

Discuss the accounting treatment of a variable rate loan commitment under IFRS 9 in the financial statements of Garu-Tempane Ltd.

You're reporting an error for "CR – Nov 2018 – L3 – Q2e – Financial instruments: Recognition and measurement Corporate reporting"

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