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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.