Exam 8: Financial Instruments

Which of the following are regarded as financial instruments: I Deposits held by a financial institution; II Ordinary shares; III Raw materials inventories; IV Property, plant and equipment. V Accounts receivable and accounts payable.

Whitnall Limited lost $150 on a hedging instrument and had a corresponding gain on the hedged item of $100. The effectiveness range for the associated transactions is:

AASB 139 requires that on initial recognition, financial assets and liabilities be measured at:

Which of the following items is classified as a financial asset?

Which of the following is NOT an example of a derivative financial instrument?

A financial liability classified as fair value through profit and loss must be: I $\quad$ a derivative (except for a derivative that is a financial guarantee contract or a $\quad$$\quad$ hedging instrument) II $\quad$ acquired principally for the purpose of selling it in the near term III $\quad$ part of a portfolio of identified financial instruments that are managed together $\quad$$\quad$ and for which there is evidence of a recent actual pattern of short-term profit-taking IV $\quad$ designated as such up on initial recognition

Callas Corporation Limited buys an option that entitles it to purchase 2000 shares in Maria Limited at $5 per share at any time in the next 3 months. The derivative financial instrument in this transaction is the:

AASB 139 Financial Instruments: Recognition and Measurement, requires that 'Held-to-maturity' investments be initially measured at:

A financial asset classified as fair value through profit and loss (FVTPL) must be: I $\quad$ a derivative that is a financial guarantee contract or a hedging instrument II $\quad$ acquired princip ally for the purpose of selling it in the near term III $\quad$ part of a portfolio of identified instrument that are managed together and for $\quad$$\quad$ which there is evidence of a recent actual pattern of short-term profit-taking IV $\quad$ designated as such upon initial recognition