Reference no: EM132772423

Problem 1: If an entity reclassified financial assets in accordance with PFRS 9 from one model to another, it shall apply the reclassification

a. Retrospectively restating any previously recognized gains, losses or interest.

b. Prospectively without restating any previously recognized gains, losses or interest.

c. As prior period error.

d. None of the above.

Problem 2: The following are considered as financial asset or financial liability held for trading, except

a. It is acquired or incurred principally for the purpose of selling or repurchasing it in the near term.

b. On initial recognition, it is a part of a portfolio of identified financial instruments that are managed together and for which there is evidence of a recent actual pattern of short-term profit-taking.

c. It is a derivative, except for a derivative that is a financial guarantee contract or a designated and effective hedging instrument.

d. It is a financial asset held for currently undetermined purpose.