Financial Instrument

MFRS9 Financial Instrument classified Financial Instrument into......

• Held to Maturity

• Available for Sale

• Loan and Receivable

• Business model

"The accounting treatments of the financial instruments are not notably reflected in the term of the classifications". Based on the statement, it is True or False?

• True

• False

FVTPL refers to

• Classifications of Financial Instruments

• Fair value recognized through Profit or Loss

• Fair value recognized through Other Comprehensive Income

• Available for Sale

Which of the following is referring to impairment of Financial Instruments under MFRS9?

• Expected Credit Losses model

• Incurred losses approach

• recognised impairment earlier

• recognised impairment if an event occured.

A financial instrument is simply tradeable assets such as ______ and others that either have monetary values or give the right to another party(legally binding and enforceable) to receive money.

• bond

• shares

• bill of exchange

• futures

Sinar Bhd subscribes to bonds issued by Cahaya Bhd.

• For Cahaya Bhd, the bond represent a financial liability

• For Cahaya Bhd, the bond represent a financial asset

• For Sinar Bhd, the bond is financial asset

• For Sinar Bhd, the bond is financial liability

Identify two types of derivatives......

• Swap

• Bond

• Account Receivable

• Option

A financial instrument is defined in the standard as a contract that gives rise to a financial asset to one entity and a financial liability and equity to another.

• True

• False

Trade date accounting is the date when the entity makes the commitment to purchase or sell the financial instrument.

• True

• False

Settlement date accounting refers to the date when the financial instrument is delivered.

• True

• False