IFRS 9: the standard-setter strikes back

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 re-read the article before attempting the questions again

  1. What standard is IFRS 9 replacing?

  2. Which category no longer exists per IAS 39?

  3. Which of these is not true regarding equity investments under FVPL?

  4. Which, if any, of the following statements correctly describes the accounting treatment for equity investments using FVOCI? Statement 1 - Gains or losses should be recorded in OCI, or Statement 2 - When disposed, the gain or loss is recycled into P&L

  5. Which of these relates to a stakeholders’ concern over IFRS 9 in relation to equity investments?

  6. Which of these was not a reason the IASB believes IFRS 9 is appropriate?

  7. When is a post-issuance review of IFRS 9 due?

  8. Which, if any, of the following statements is correct? Statement 1 - Under IFRS 9, all equity investments are subject to an annual impairment test, or Statement 2 - FVOCI equity investments can be reclassified to FVPL if they are to be sold

  9. Which of the following is a criticism of the recycling principle made by the IASB?

  10. Which, if any, of the following statements is correct regarding EFRAG’s findings? Statement 1 - the majority of respondents do not expect to modify their holdings for equity investments, or Statement 2 - Those who will modify their holdings believe there is an accounting mismatch