Financial instruments

Multiple-choice questions. In order to be awarded CPD units you must answer the following five random questions correctly. If you fail the test, please reread the article before attempting the questions again.

How many financial instrument projects are underway at the IASB?

Two

Five

Four

Three

Which of the projects has released an exposure draft?

All the other answers are correct

Financial instruments with characteristics of equity

Dynamic risk management

Amortised cost

When are conclusions expected on the FICE project?

2027

2026

They have already been finalised

Late 2025

What is the objective of the dynamic risk management project?

To better reflect an entity's risk management strategics in the financial statements

To clarify the treatment of financial instruments as to whether they should be equity or liabilities

None of the other answers is correct

To improve the effective interest rate recorded within amortised cost

Which of the following is a key term to be introduced in the dynamic risk management project?

Current net open risk position (CNOP)

Net risk exposure (NRE)

Focused liability position (FLP)

Effective interest rate (EIR)

When is an exposure draft expected in relation to the amortised cost project?

Second half of 2026

2027

First half of 2026

Late 2025

The dynamic risk management project looks to replace portfolio hedge accounting under which standard?

IAS 39

None of the other answers is correct

IFRS 7

IAS 32

Which of the following statements about the dynamic risk management project are correct? Statement 1, the DRM is currently proposed to be optional. Statement 2, an exposure draft on the DRM project is expected in late 2025

Both statements are correct

Statement 2 is correct

Statement 1 is correct

Neither statement is correct

Which is the newest of the financial instrument projects?