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    International Acc Quizlet

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    - Under a BOT arrangement that is within the scope of IFRIC 12, the operator acts as a service provider. - An operator under a service concession arrangement accounts for revenue from operation services in accordance with PFRS 15 Revenue from contracts with customers. - According to PFRS 15, if the consideration in the contract is a non-cash consideration, the non-cash consideration is measured at fair value.

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    International Acc Quizlet

    Uploaded by

    수지
    61 views2 pages
    - Under a BOT arrangement that is within the scope of IFRIC 12, the operator acts as a service provider. - An operator under a service concession arrangement accounts for revenue from operation services in accordance with PFRS 15 Revenue from contracts with customers. - According to PFRS 15, if the consideration in the contract is a non-cash consideration, the non-cash consideration is measured at fair value.

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    - Under a BOT arrangement that is within the scope of IFRIC 12, the operator acts as a service provider. - An operator under a service concession arrangement accounts for revenue from operation services in accordance with PFRS 15 Revenue from contracts with customers. - According to PFRS 15, if the consideration in the contract is a non-cash consideration, the non-cash consideration is measured at fair value.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    61 views2 pages

    International Acc Quizlet

    Uploaded by

    수지
    - Under a BOT arrangement that is within the scope of IFRIC 12, the operator acts as a service provider. - An operator under a service concession arrangement accounts for revenue from operation services in accordance with PFRS 15 Revenue from contracts with customers. - According to PFRS 15, if the consideration in the contract is a non-cash consideration, the non-cash consideration is measured at fair value.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    TRUE - Under a BOT arrangement that is within the scope of IFRIC 12, the operator acts as a service

    provider

    FALSE - An operator under a service concession arrangement accounts for revenue from construction or
    upgrade services in accordance with PFRS 9 Financial instruments or PAS 38 Intangible Assets or both,
    depending on the nature of the consideration

    TRUE - An operator under a service concession arrangement accounts for revenue from operation
    services in accordance with PFRS 15 Revenue from contracts with customers

    TRUE - According to PFRS 15, if the consideration in the contract is a non-cash consideration, the non-
    cash consideration is measured at fair value

    FALSE - If the operator under a BOT contract has a contractual right to receive cash or other financial
    asset, the operator may capitalize borrowing cost during the construction phase subject to the
    provisions of PAS 23

    If the market price is lower than the option price, the call option is

    a) On the money
    b) At the money
    c) Out of the money
    d) In the money

    Uncertainty about the future market value of an asset is referred to as

    a) Interest rate risk


    b) Price risk
    c) Exchange rate risk
    d) Credit risk

    Which type of contract is unique in that it protects the owner against unfavorable movements in prices
    or rates while allowing the owner to benefit from favorable movements?

    a) Forward contract
    b) Option
    c) Interest rate swap
    d) Futures contract

    V Company has an existing P1,000,000 loan that pays interest at whatever the prevailing interest rate is
    at the beginning of each year. V Company wants to pay fixed interest instead. Accordingly, V Company
    enters into a swap agreement with B Enterprises. How should V Company account for the swap?
    a) Any of these as a matter of company policy
    b) As a fair value hedge
    c) As held for trading security
    d) As a cash flow hedge

    L Company produces colorful 100% cotton shirts and the entity needs 50,000 kilos of raw materials in
    the production process. On December 1, 2021, the entity purchased a call option as a cash flow hedge to
    buy 50,000 kilos on July 1, 2022. The option strike price is P100 per kilo. The entity paid P50,000 for the
    call option. This derivative option contract means that if the market price is higher than P100, the entity
    can exercise the option and buy the asset at the strike option price of P100. If the market price is lower
    than P100, the entity can throw away the option and buy the asset at the cheaper price. The market
    price per kilo is P110 on December 31, 2021 and P115 on July 1, 2022.

    What is the derivative asset on December 31, 2021?

    a) P750,000
    b) P450,000
    c) P700,000
    d) P500,000

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