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Problem 1: Under what circumstances can an entity classify financial assets that meet the amortized cost criteria as at FVTPL?
a) Where the instrument is held to maturity
b) Where the business model approach is adopted
c) Where the financial asset passes the contractual cash flow characteristics test
d) If doing so eliminates or reduces an accounting mismatch
Problem 2: Which of the following is a financial liability?
a) Deferred revenue
b) A warranty obligation
c) A constructive obligation
d) An obligation to deliver own shares worth a fixed amount of cash
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Are acquisitions of capital assets always accounted for through Capital Projects Funds? Explain.
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