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1. Which of the following are NOT classed as financial instruments?
2. Ray owns two financial asset investments in the shares of listed companies. Details of which are as follows:

Investment 1 – Acquired 1 September 2020 at a cost of $50,000 for the purpose of trading. It’s fair value at year-end is $60,000.
Investment 2 – Acquired 1 August 2020 at a cost of $25,000to hold indefinitely. Its fair value at year-end is $20,000.

What are the amounts to appear in the financial statements for the year ended 30 September 2020?

3. On 1 January 20X1 Oberon Co purchased a debt instrument at its fair value of $500,000. It had a principal amount of $550,000 and was due to mature in five years. The debt instrument carries fixed interest of 6% paid annually in arrears and has an effective interest rate of 8%. It is held at amortised cost.
At what amount will the debt instrument be shown in the statement of financial position of Oberon Co as at 31 December 20X2?
4. Orelian bought 100,000 shares in a listed entity on 1 May 2018 for $420,000, incurring transaction costs of $10,000. The shares were not acquired for the purpose of trading but to realize the gains in the future. On the 30 June 2018 reporting date, the fair value of a share was $5.10.

What are the amounts to appear in the financial statement for the year-ended 30 June 2018?

5. BAY purchased 11,500 shares on 1 September 2019, making the election to use the alternative treatment under IFRS 9 Financial Instruments. The shares cost $3.50 each. Transaction costs associated with the purchase were $750.
At 31 December 2019, the shares are trading at $4.50 each.

What is the gain to be recognised on these shares for the year ended 31 December 2019?


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