Standard-setter looks to solve debt vs equity puzzle

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 stage is the FICE project at?

  2. The major classification issue of the FICE project relates to which of these?

  3. The FICE project is looking at the rules in which standard?

  4. Which of the following features are included in the proposed method?

  5. Which of the following is likely to be classified solely as a liability?

  6. Which of the following is likely to be classed as equity?

  7. Which, if any, of the following statements is correct? Statement 1 - The puttables exception per IAS 32 is being removed, or Statement 2 - All derivatives issued in an entity’s own equity will be equity instruments?

  8. In addition to the classification of financial instruments, what other area is addressed in the FICE project?

  9. Which, if any, of the following statements is/are true? Statement 1 - A derivative on own equity is an asset/liability if it is net settled, Statement 2 - A derivative on own equity is an asset/liability if it is affected by a variable that is independent of the entity’s available economic resources?

  10. Which, if any, of the following statements correctly identifies the aims of the FICE project? Statement 1: The project is looking to provide clearer rationale for the classification of items, or Statement 2: The classification of many financial instruments is likely to change