Derecognition in its entirety Continuing involvement after a transfer

Chapter 20 – Financial Instruments Page 299 20. Are the following statements true or false, in accordance with IFRS7 Financial instruments: disclosures? 1 The carrying amount of held-to-maturity investments must be disclosed in the statement of financial position. 2 The amount of any impairment loss for each class of financial asset must be disclosed in the statement of comprehensive income. Statement 1Statement 2 A False False B False True C True False D True True 21. Are the following statements about disclosures within the financial statements true or false, according to IFRS7 Financial instruments: disclosures? 1 The disclosure of quantitative data about an entitys risk exposure shall be based upon internal information provided to key management personnel. 2 A maturity analysis for financial liabilities based on the expected payment dates for those liabilities shall be disclosed. Statement 1 Statement 2 A False False B False True C True False D True True 22. The Stone Company has an account receivable from The Knowles Company of CU55,000. Stone also has an account payable to Knowles of CU15,000. Local law allows the enforceable right of set-off of the recognised amounts. It is not normal business practice to settle the amounts net. What amount for accounts receivable and accounts payable should be presented in Stones statement of financial position, according to IAS32 Financial instruments: presentation? Accounts receivable Accounts payable A CU55,000 CU15,000 B CU40,000 Nil C CU55,000 Nil D Nil CU15,000 Chapter 20 – Financial Instruments Page 300 23. The Humphreys Company issued 10,000 warrants for CU2 cash each on 1 June 20X5. Each warrant gives the holder the right to acquire one new CU1 ordinary share for CU16 during the next four years. The market value of each warrant at 31 December 20X5 was CU5. In accordance with IAS32 Financial instruments: presentation, at what amount should the warrants be presented in Humphreyss statement of financial position at 31 December 20X5? A CU20,000 B CU10,000 C CU160,000 D CU50,000 24. The Murrie Company has hedged the cash flows relating to its interest rate risk by purchasing an interest rate cap. Interest rates have risen and the hedge has proved to be 90 effective based on the amount hedged. Additional interest charges up to the end of the financial year amount to CU24,000. In accordance with IAS39 Financial instruments: recognition and measurement, what amount relating to the additional interest costs should be recognised in profit or loss? A Nil B CU2,400 C CU21,600 D CU24,000 25. On 31 December 20X4 The Grenfell Company issued 200 convertible bonds with a nominal interest rate of 7 for CU20 each. Each bond can be converted into 5 new equity shares or redeemed for cash, at the option of the holder, in 5 years time. The fair value at that date of similar bonds without the convertibility option was estimated at CU18 each. In accordance with IAS32 Financial instruments, presentation, the amount recognised in equity in respect of the convertible bonds at 31 December 20X4 will be A CU4,000 B CU3,600 C CU400 D Nil