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CA Final Ind AS 109 Financial Instruments — practice questions

Explore 83 free Ind AS 109 Financial Instruments questions in CA Final Financialreporting. Open each question or exercise to read its content, reference answers and available explanation.

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Ind AS 109 Financial Instruments questions and exercises with answers

Showing questions 1–30 of 83.

Which earlier standard did IFRS 9 replace for financial instruments?Read the answer and worked solution →IFRS 9 on financial instruments came into force on which date?Read the answer and worked solution →Which of these is NOT one of the three main topics covered by IFRS 9?Read the answer and worked solution →On what date was the final version of IFRS 9, including hedge accounting and impairment, issued?Read the answer and worked solution →The IASB's first 2009 portion of IFRS 9 mainly covered what?Read the answer and worked solution →Classification of financial assets under IFRS 9 depends on how many tests?Read the answer and worked solution →In the contractual cash flow test, what does SPPI stand for?Read the answer and worked solution →A financial asset fails the SPPI test. How is it measured?Read the answer and worked solution →By default, how are equity instruments and derivatives reported under IFRS 9?Read the answer and worked solution →A debt asset passes SPPI and is held to collect contractual cash flows without expected sale. Its category?Read the answer and worked solution →A debt asset passes SPPI and the business model is to collect cash flows and also sell the asset. Its category?Read the answer and worked solution →A debt asset is held for trading under another business model. How is it reported?Read the answer and worked solution →For a debt asset at FVOCI, which basis determines the profit and loss amounts?Read the answer and worked solution →Where is the FVOCI debt fair value gap shown?Read the answer and worked solution →Under IFRS 9, how are most financial liabilities measured?Read the answer and worked solution →For a liability under the fair value option, where does the change due to own credit standing go?Read the answer and worked solution →What does the fair value option allow for an amortized cost asset?Read the answer and worked solution →The IFRS 9 FVOCI election for equity covers which instruments?Read the answer and worked solution →What happens to the gain on sale of FVOCI equity investments?Read the answer and worked solution →How does the SPPI test treat de minimis contractual features?Read the answer and worked solution →Which assets mainly carry the IFRS 9 impairment allowance?Read the answer and worked solution →The change in the impairment allowance under IFRS 9 is reported where?Read the answer and worked solution →At initial acquisition, the impairment allowance for most assets covers losses over what period?Read the answer and worked solution →What moves a 12-month allowance to a lifetime allowance?Read the answer and worked solution →If an asset's credit risk later recovers, its allowance may do what?Read the answer and worked solution →For assets credit impaired at purchase, the allowance rests on what?Read the answer and worked solution →Which criticism of the old impairment model did IFRS 9 address?Read the answer and worked solution →What is the FASB impairment model that recognises full lifetime losses from acquisition called?Read the answer and worked solution →How does the day-one loss under IFRS 9 compare with FASB's?Read the answer and worked solution →Financial instruments can be either cash instruments or which other broad type?Read the answer and worked solution →

Worked practice questions

Which earlier standard did IFRS 9 replace for financial instruments?

  1. IAS 32
  2. IAS 16
  3. IAS 39
  4. IFRS 7
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Correct answer: C. IAS 39

IFRS 9 took over from IAS 39, which had earlier governed the recognition and measurement of financial instruments.

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IFRS 9 on financial instruments came into force on which date?

  1. 1 January 2005
  2. 1 April 2020
  3. 1 January 2018
  4. 1 April 2014
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Correct answer: C. 1 January 2018

The standard became effective for annual periods beginning on 1 January 2018.

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Which of these is NOT one of the three main topics covered by IFRS 9?

  1. Hedge accounting of exposures
  2. Impairment of financial assets
  3. Classification and measurement
  4. Consolidation of subsidiaries
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Correct answer: D. Consolidation of subsidiaries

IFRS 9 deals with classification and measurement, impairment and hedge accounting; consolidation belongs to a different standard.

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More Financialreporting topics

Ind AS 116 LeasesInd AS 36 Impairment of Assets and Ind AS 38 Intangible AssetsInd AS 24 Related Party Disclosures and Ind AS 108 Operating SegmentsInd AS 1 Presentation of Financial StatementsInd AS 12 Income TaxesInd AS 113 Fair Value MeasurementInd AS 23 Borrowing Costs and Ind AS 40 Investment PropertyInd AS 103 Business Combinations