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CA Final Ind AS 32 Financial Instruments: Presentation — practice questions — page 2

Explore 56 free Ind AS 32 Financial Instruments: Presentation 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 32 Financial Instruments: Presentation questions and exercises with answers

Showing questions 31–56 of 56.

Convertible issue Rs 500 lakh; debt part Rs 430 lakh. Equity part?Read the answer and worked solution →Debt Rs 80 lakh, equity Rs 20 lakh. Issue cost Rs 5 lakh. Split?Read the answer and worked solution →Conversion becomes very likely. Components are?Read the answer and worked solution →Own shares bought back, resold at gain. Profit recognised?Read the answer and worked solution →How are reacquired own equity instruments presented?Read the answer and worked solution →Buying back own shares from related parties triggers disclosure under which standard?Read the answer and worked solution →A dividend paid on equity-classified shares is recognised where?Read the answer and worked solution →A dividend on shares classed as liabilities is?Read the answer and worked solution →Gain on redeeming a liability below carrying amount goes?Read the answer and worked solution →Fair value changes of own equity instruments are?Read the answer and worked solution →Legal and printing costs of a share issue are?Read the answer and worked solution →The costs of a share issue that was later abandoned are what?Read the answer and worked solution →Which issue costs go against equity?Read the answer and worked solution →Income tax on distributions to equity holders follows which standard?Read the answer and worked solution →Set-off right held, gross settlement planned. Offset?Read the answer and worked solution →Receivable 80 lakh, payable 50 lakh, offset allowed. Shown?Read the answer and worked solution →Offsetting differs from derecognition how?Read the answer and worked solution →Assets pledged for non-recourse liabilities are usually?Read the answer and worked solution →Is a sinking fund offset against the debentures?Read the answer and worked solution →A master netting arrangement provides?Read the answer and worked solution →Puttable equity must entitle holders to?Read the answer and worked solution →Puttable equity must sit in which class?Read the answer and worked solution →On reclassifying equity to liability, difference goes to?Read the answer and worked solution →Must a financial instrument contract be written?Read the answer and worked solution →Which are 'entities' under Ind AS 32?Read the answer and worked solution →Pro rata rights at a fixed price in any currency are?Read the answer and worked solution →

Worked practice questions

Convertible issue Rs 500 lakh; debt part Rs 430 lakh. Equity part?

  1. Rs 70 lakh
  2. Rs 430 lakh
  3. Rs 500 lakh
  4. Rs 930 lakh
Show answer and solution

Correct answer: A. Rs 70 lakh

Equity equals total fair value less the liability component: 500 minus 430 gives Rs 70 lakh.

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Debt Rs 80 lakh, equity Rs 20 lakh. Issue cost Rs 5 lakh. Split?

  1. All Rs 5 lakh to debt
  2. Debt 4 lakh, equity 1 lakh
  3. Split equally to each part
  4. All Rs 5 lakh to equity
Show answer and solution

Correct answer: B. Debt 4 lakh, equity 1 lakh

Costs follow the 80:20 split of proceeds, so 5 lakh divides into 4 lakh and 1 lakh.

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Conversion becomes very likely. Components are?

  1. Liability moved to equity
  2. Equity moved to liabilities
  3. Left as first classified
  4. Both remeasured at market
Show answer and solution

Correct answer: C. Left as first classified

The likelihood of conversion changing does not alter the original split; the payment obligation remains until conversion or maturity.

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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 109 Financial InstrumentsInd AS 23 Borrowing Costs and Ind AS 40 Investment Property