IAS 39 – Knowsia

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

FR – May 2016 – L2 – Q7a – Financial Instruments (IAS 32, IFRS 9)

Explain fair value and amortised cost measurement of financial assets under IAS 39 with examples of applicable asset classes.

Question

After initial recognition in the Financial Statements, Financial Assets are measured either at fair value or amortised cost according to the provisions of IAS 39 – Financial Instruments: Recognition & Measurement.

Required:

Briefly explain how fair value and amortised costs of financial assets are determined and give one example each of the class of financial assets that can be measured using the methods.

Answer

Find Related Questions by Tags, levels, etc.

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

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

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

FR – May 2016 – L2 – Q7a – Financial Instruments (IAS 32, IFRS 9)

Explain fair value and amortised cost measurement of financial assets under IAS 39 with examples of applicable asset classes.

Question

Required:

Briefly explain how fair value and amortised costs of financial assets are determined and give one example each of the class of financial assets that can be measured using the methods.

Answer

Find Related Questions by Tags, levels, etc.

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

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

Question Tag: IAS 39

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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.

FR – May 2016 – L2 – Q7a – Financial Instruments (IAS 32, IFRS 9)

Explain fair value and amortised cost measurement of financial assets under IAS 39 with examples of applicable asset classes.

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.

FR – May 2016 – L2 – Q7a – Financial Instruments (IAS 32, IFRS 9)

Explain fair value and amortised cost measurement of financial assets under IAS 39 with examples of applicable asset classes.

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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)"

FR – May 2016 – L2 – Q7a – Financial Instruments (IAS 32, IFRS 9)

Explain fair value and amortised cost measurement of financial assets under IAS 39 with examples of applicable asset classes.

You're reporting an error for "FR – May 2016 – L2 – Q7a – Financial Instruments (IAS 32, IFRS 9)"

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)"

FR – May 2016 – L2 – Q7a – Financial Instruments (IAS 32, IFRS 9)

Explain fair value and amortised cost measurement of financial assets under IAS 39 with examples of applicable asset classes.

You're reporting an error for "FR – May 2016 – L2 – Q7a – Financial Instruments (IAS 32, IFRS 9)"

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