CA Final fainstrumentclassification — practice questions
15 free MCQs with worked solutions. Tap any question for the answer + explanation, or practice them all in the app.
Practice CA Final fainstrumentclassification in the app →Under Ind AS 109, the CLASSIFICATION of a financial asset is based on:Under Ind AS 109, financial assets HELD FOR TRADING include:Under Ind AS 109, an entity's BUSINESS MODEL for managing financial assets is:An entity holds investments to collect their contractual cash flows; infrequent sales occur when credit risk iAn entity originates loans and immediately sells them to a securitisation vehicle that the entity CONTROLS andUnder Ind AS 109's SPPI test, "interest" in a basic lending arrangement typically reflects:Under Ind AS 109, a financial asset can be subsequently measured at AMORTISED COST only when:A bond's principal and interest payments are LINKED TO AN UNLEVERAGED INFLATION INDEX in the currency of issuaA bond is CONVERTIBLE into a fixed number of equity instruments of the issuer. Under Ind AS 109, the holder's A perpetual instrument can be called by the issuer at any time at par + accrued interest. Interest is at a marUnder Ind AS 109, the FAIR VALUE OPTION (designating a financial asset at FVTPL at initial recognition) is avaAn entity holds short-term investments to fund a future capital expenditure. Sales are INFREQUENT and INSIGNIFA loan pays an INVERSE FLOATING interest rate (the rate moves opposite to market interest rates). Under Ind ASA financial institution holds assets to meet LIQUIDITY needs in a stress-case scenario. The entity monitors crUnder Ind AS 109, a debt instrument with a HOLDER-PUT or ISSUER-PREPAY option meets the SPPI test only if the