ACC 577 help A Guide to career/uophelp.com ACC 577 help A Guide to career/uophelp.com | Page 7

Question 6
Which of the following must the transferor of a financial asset disclose?
I. Assets pledged as collateral, either in the balance sheet or notes. II.
Detailed information about financial assets that have been securitized
and sold.
Question 7
Servco, a loan servicing agency, paid $60,000 to acquire a three-year
right to service $1,000,000 of Banco's loans. Servco will be entitled to a
servicing fee of 1% of the interest and fees collected during the three-
year period. Servco expects its servicing fees to be: Which one of the
following is the amount of the $60,000 acquisition fee that Servco
should amortize during year 1?
Question 8
Which of the following, if any, can be the risk being hedged in a foreign
currency hedge?
Question 9
A derivative financial instrument is best described as:
Question 10
Which of the following conditions must be met for derecognition of a
transferred financial asset to occur under IFRS? I. The financial asset
has been transferred outside the consolidated group of the transferor. II.
The transferor has transferred substantially all of the risks and rewards
of ownership of the financial asset. III. The contractual rights to the
financial assets cash flows cannot be retained by the transferor, but must
be transferred to the transferee.
Question 11