What b co should account for these bonds at

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Problem 1: B Co., purchased bonds at a discount in the open market as an investment. The bonds will be held in order to collect their contractual cash flows. B Co. should account for these bonds at,

a) Cost                  c) Fair value through OCI

b) Amortized cost      d) Lower of cost or market

Problem 2: According to PFRS #9, on initial recognition, the entity has the option of designating financial assets to be measured as FVPL...

a) if doing so enhances the qualitative characteristics of financial information presented in the financial statements.

b) if doing so significantly reduces or eliminates "accounting mismatch".

c) if it is required by "shadow accounting".

d) at the entity's management's absolute discretion.

Reference no: EM132756947

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