{"entries":[{"key":"LX.IFRS7.000001","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.SCOPE.OBJECTIVE"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"OBJECTIVE_TWO_PARTS","difficulty":"BEGINNER","estimated_time_s":30,"lesson_id":"LS.IFRS7.000001","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000001","section_id":"rule-objective"},"references":["IFRS 7 §1","IFRS 7 §31"],"exercise":{"prompt":{"fr":"","en":"IFRS 7 asks for information on the importance of financial instruments to the entity and on the risks arising from them.","es":""},"explanation":{"fr":"","en":"These are the two objectives of IFRS 7 (IFRS 7, para. 1; IFRS 7, para. 31).","es":""},"common_error":{"fr":"","en":"Reducing IFRS 7 to a recognition or measurement standard.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000002","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.SCOPE.OBJECTIVE"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"FINANCE","tested_point":"OBJECTIVE_PART_SORT","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IFRS7.000001","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000001","section_id":"rule-objective"},"references":["IFRS 7 §1","IFRS 7 §31"],"exercise":{"prompt":{"fr":"","en":"Sort each item of the note on financial instruments according to the part of the standard it answers.","es":""},"explanation":{"fr":"","en":"The first objective concerns the importance of instruments (IFRS 7, para. 1), the second the nature and extent of risks (IFRS 7, para. 31). Practice reading: amounts by category and income and expense belong to the first; maturities, sensitivity and risk management to the second.","es":""},"common_error":{"fr":"","en":"Placing every note on instruments in a single part.","es":""},"format":"CLASSIFICATION","categories":[{"id":"imp","text":{"fr":"","en":"Importance of instruments","es":""}},{"id":"risk","text":{"fr":"","en":"Nature and extent of risks","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Net gains and losses by category of instruments","es":""},"category":"imp"},{"id":"i2","text":{"fr":"","en":"Maturity analysis of financial liabilities","es":""},"category":"risk"},{"id":"i3","text":{"fr":"","en":"Interest income and expense for the period","es":""},"category":"imp"},{"id":"i4","text":{"fr":"","en":"Sensitivity analysis to an interest rate change","es":""},"category":"risk"},{"id":"i5","text":{"fr":"","en":"Carrying amount of each category of financial assets","es":""},"category":"imp"},{"id":"i6","text":{"fr":"","en":"Description of how credit risk is managed","es":""},"category":"risk"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000003","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.SCOPE.OBJECTIVE"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"FINANCE","tested_point":"IFRS9_VS_IFRS7_ROLE","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IFRS7.000001","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000001","section_id":"understand"},"references":["IFRS 7 §1"],"exercise":{"prompt":{"fr":"","en":"A bank has granted a loan to a customer. How are the roles of IFRS 9 and IFRS 7 shared as regards it?","es":""},"explanation":{"fr":"","en":"IFRS 7 complements the principles of recognition, measurement and presentation; it does not stand in for them (IFRS 7).","es":""},"common_error":{"fr":"","en":"Looking for entries in IFRS 7.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"IFRS 7 says how to measure it; IFRS 9 says what must be explained about it","es":""},"correct":false,"feedback":{"fr":"","en":"The roles are reversed: IFRS 9 measures, IFRS 7 asks for explanation (IFRS 7, para. 1).","es":""}},{"id":"B","text":{"fr":"","en":"IFRS 9 says how to recognise it; IFRS 7 says what must be explained","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Both standards say how to recognise it, IFRS 7 for long-term loans","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 7 recognises nothing, whatever the maturity: it complements recognition (IFRS 7).","es":""}},{"id":"D","text":{"fr":"","en":"IFRS 7 replaces IFRS 9 as soon as the entity publishes a detailed note","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 7 complements the principles of recognition and measurement without replacing them (IFRS 7).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000004","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.SCOPE.OBJECTIVE"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"INDUSTRY","tested_point":"OBJECTIVE_ERROR_SPOT","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS7.000001","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000001","section_id":"rule-objective"},"references":["IFRS 7 §1","IFRS 7 §31"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statement about the objective of IFRS 7.","es":""},"explanation":{"fr":"","en":"The note covers the nature and extent of the risks arising from financial instruments: credit, liquidity and market (IFRS 7).","es":""},"common_error":{"fr":"","en":"Documenting only credit risk.","es":""},"format":"ERROR_SPOT","statements":[{"id":"s1","text":{"fr":"","en":"IFRS 7 covers credit risk only; liquidity and market risks are matters for IAS 32.","es":""},"erroneous":true,"correction":{"fr":"","en":"IFRS 7 concerns the nature and extent of risks arising from financial instruments, including liquidity and market risks (IFRS 7).","es":""}},{"id":"s2","text":{"fr":"","en":"IFRS 7 complements the principles of recognition, measurement and presentation of financial instruments.","es":""},"erroneous":false},{"id":"s3","text":{"fr":"","en":"The nature and extent of risks are assessed at the reporting date.","es":""},"erroneous":false},{"id":"s4","text":{"fr":"","en":"The note also explains how the entity manages the risks arising from the instruments.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000005","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.SCOPE.CLASSES"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"RETAIL","tested_point":"CLASS_VS_CATEGORY_SENTENCE","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IFRS7.000001","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000001","section_id":"rule-classes"},"references":["IFRS 7 §6"],"exercise":{"prompt":{"fr":"","en":"Which sentence correctly distinguishes a class of instruments from a measurement category?","es":""},"explanation":{"fr":"","en":"Classes differ from measurement categories; they serve to present information (IFRS 7, para. 6).","es":""},"common_error":{"fr":"","en":"Confusing a presentation class with a measurement category.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The class indicates the measurement basis; the category groups instruments to present information","es":""},"correct":false,"feedback":{"fr":"","en":"The terms are reversed: the category follows measurement, the class serves presentation (IFRS 7, para. 6).","es":""}},{"id":"B","text":{"fr":"","en":"The two words denote the same grouping, chosen by the entity","es":""},"correct":false,"feedback":{"fr":"","en":"The standard distinguishes classes from measurement categories (IFRS 7, para. 6).","es":""}},{"id":"C","text":{"fr":"","en":"The class is fixed by the standard; the category is chosen by the entity","es":""},"correct":false,"feedback":{"fr":"","en":"It is the other way round: the entity determines its classes, the category comes from the measurement framework (IFRS 7, para. 6).","es":""}},{"id":"D","text":{"fr":"","en":"The class groups instruments to present information; the category indicates the measurement basis","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000006","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.SCOPE.CLASSES"],"dimension":"RECOGNITION","format":"MATCHING","context":"FINANCE","tested_point":"CLASS_VOCABULARY_MATCH","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS7.000001","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000001","section_id":"rule-classes"},"references":["IFRS 7 §6"],"exercise":{"prompt":{"fr":"","en":"Match each notion to its definition.","es":""},"explanation":{"fr":"","en":"Classes are chosen by judgement, according to the nature of the information and the characteristics of the instruments, and reconcile to line items; categories come from measurement (IFRS 7, para. 6).","es":""},"common_error":{"fr":"","en":"Taking a class for a measurement category.","es":""},"format":"MATCHING","left":[{"id":"l1","text":{"fr":"","en":"Class","es":""}},{"id":"l2","text":{"fr":"","en":"Measurement category","es":""}},{"id":"l3","text":{"fr":"","en":"Reconciliation","es":""}},{"id":"l4","text":{"fr":"","en":"Number of classes","es":""}}],"right":[{"id":"r1","text":{"fr":"","en":"Grouping chosen according to the nature of the information and the characteristics of the instruments","es":""}},{"id":"r3","text":{"fr":"","en":"Link between the classes and the line items of the statement of financial position","es":""}},{"id":"r2","text":{"fr":"","en":"Basis on which the instrument is measured, under the measurement framework","es":""}},{"id":"r4","text":{"fr":"","en":"Not fixed by the standard: left to the entity's assessment","es":""}}],"pairs":[{"left":"l1","right":"r1"},{"left":"l2","right":"r2"},{"left":"l3","right":"r3"},{"left":"l4","right":"r4"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000007","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.SCOPE.CLASSES"],"dimension":"APPLICATION","format":"MULTIPLE_CHOICE","context":"TECH","tested_point":"CLASS_GROUPING_FACTORS","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IFRS7.000001","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000001","section_id":"judgment"},"references":["IFRS 7 §6"],"exercise":{"prompt":{"fr":"","en":"Which factors guide the grouping of financial instruments into classes? (several answers)","es":""},"explanation":{"fr":"","en":"The nature of the information, the characteristics of the instruments and reconciliation to line items guide the classes (IFRS 7, para. 6).","es":""},"common_error":{"fr":"","en":"Aggregating to lighten the note, to the point of hiding very different instruments.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The alphabetical order of counterparties","es":""},"correct":false,"feedback":{"fr":"","en":"Alphabetical order says nothing about the nature of the information or the characteristics of the instruments (IFRS 7, para. 6).","es":""}},{"id":"B","text":{"fr":"","en":"The nature of the information to be disclosed","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The characteristics of the instruments","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Management's wish to show as few lines as possible","es":""},"correct":false,"feedback":{"fr":"","en":"The number of lines is not a criterion: too broad a grouping can hide useful differences (IFRS 7, para. 6).","es":""}},{"id":"E","text":{"fr":"","en":"The ability to reconcile the classes to the line items of the statement of financial position","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000008","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.POSITION_PERFORMANCE.CATEGORIES"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"FINANCE","tested_point":"CATEGORIES_ORIGIN","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IFRS7.000002","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000002","section_id":"rule-categories"},"references":["IFRS 7 §8"],"exercise":{"prompt":{"fr":"","en":"Where do the categories whose carrying amount IFRS 7 asks for come from?","es":""},"explanation":{"fr":"","en":"Categories come from the measurement framework (IFRS 9); IFRS 7 asks for their carrying amounts (IFRS 7).","es":""},"common_error":{"fr":"","en":"Looking in IFRS 7 for a list of categories.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"From a list of categories set by IFRS 7 which binds listed and unlisted entities","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 7 creates no categories: it asks for those of measurement to be quantified (IFRS 7).","es":""}},{"id":"B","text":{"fr":"","en":"From management's free choice, unrelated to measurement","es":""},"correct":false,"feedback":{"fr":"","en":"Categories follow the measurement basis of each instrument, not a presentation choice (IFRS 7).","es":""}},{"id":"C","text":{"fr":"","en":"From the classes defined for the risk note","es":""},"correct":false,"feedback":{"fr":"","en":"A class differs from a category: it serves presentation, the category follows measurement (IFRS 7, para. 6).","es":""}},{"id":"D","text":{"fr":"","en":"From the measurement framework the entity applies, that is IFRS 9","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000009","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.POSITION_PERFORMANCE.CATEGORIES"],"dimension":"APPLICATION","format":"CLASSIFICATION","context":"RETAIL","tested_point":"CATEGORIES_ASSIGNMENT","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IFRS7.000002","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000002","section_id":"rule-categories"},"references":["IFRS 7 §8"],"exercise":{"prompt":{"fr":"","en":"Case convention: the measurement of each instrument is given. Place it in the right category of the table.","es":""},"explanation":{"fr":"","en":"The table gives the carrying amount of each category; here, the measurement basis supplied by the case places each instrument (IFRS 7).","es":""},"common_error":{"fr":"","en":"Forgetting financial liabilities in the table by category.","es":""},"format":"CLASSIFICATION","categories":[{"id":"ac","text":{"fr":"","en":"Amortised cost","es":""}},{"id":"pl","text":{"fr":"","en":"Fair value through profit or loss","es":""}},{"id":"oci","text":{"fr":"","en":"Fair value through OCI","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Trade payables measured at amortised cost","es":""},"category":"ac"},{"id":"i2","text":{"fr":"","en":"Bonds held to collect cash flows and to sell, measured at fair value through OCI","es":""},"category":"oci"},{"id":"i3","text":{"fr":"","en":"Currency derivative held for trading, measured at fair value through profit or loss","es":""},"category":"pl"},{"id":"i4","text":{"fr":"","en":"Trade receivables held to collect cash flows, measured at amortised cost","es":""},"category":"ac"},{"id":"i5","text":{"fr":"","en":"Bank borrowing measured at amortised cost","es":""},"category":"ac"},{"id":"i6","text":{"fr":"","en":"Quoted shares held for trading, measured at fair value through profit or loss","es":""},"category":"pl"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000010","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.POSITION_PERFORMANCE.INCOME_EXPENSE"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"FINANCE","tested_point":"INCOME_EXPENSE_ERROR_SPOT","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS7.000002","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000002","section_id":"rule-income"},"references":["IFRS 7 §20"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statement about the income, expense, gains and losses to disclose.","es":""},"explanation":{"fr":"","en":"Fees already included in the effective interest rate are not repeated in the separate fees (IFRS 7).","es":""},"common_error":{"fr":"","en":"Including in fees those already included in the effective interest rate.","es":""},"format":"ERROR_SPOT","statements":[{"id":"s1","text":{"fr":"","en":"Net gains and losses are provided by category of instruments.","es":""},"erroneous":false},{"id":"s2","text":{"fr":"","en":"Origination fees already built into the effective rate are repeated in fees a second time.","es":""},"erroneous":true,"correction":{"fr":"","en":"A fee already in the effective rate is included in interest; repeating it in fees would count it twice (IFRS 7).","es":""}},{"id":"s3","text":{"fr":"","en":"The total interest under the effective rate covers instruments not at fair value through profit or loss.","es":""},"erroneous":false},{"id":"s4","text":{"fr":"","en":"The fees to present separately are those not included in the effective interest rate.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000011","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.POSITION_PERFORMANCE.INCOME_EXPENSE"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"RETAIL","tested_point":"INCOME_EXPENSE_SORT","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IFRS7.000002","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000002","section_id":"numeric-income"},"references":["IFRS 7 §20"],"exercise":{"prompt":{"fr":"","en":"Place each income or expense item where it is presented in the note.","es":""},"explanation":{"fr":"","en":"Interest at the effective rate for instruments not at fair value through profit or loss, fees outside the effective rate, net gains and losses by category (IFRS 7).","es":""},"common_error":{"fr":"","en":"Putting the interest of a fair value through profit or loss instrument in the interest total.","es":""},"format":"CLASSIFICATION","categories":[{"id":"int","text":{"fr":"","en":"Total interest (effective rate)","es":""}},{"id":"fee","text":{"fr":"","en":"Fees outside the effective rate","es":""}},{"id":"gain","text":{"fr":"","en":"Net gains and losses by category","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Account-keeping fees charged, not included in the effective rate","es":""},"category":"fee"},{"id":"i2","text":{"fr":"","en":"Fees for managing assets on behalf of third parties, outside the effective rate","es":""},"category":"fee"},{"id":"i3","text":{"fr":"","en":"Gain on sale of shares held for trading","es":""},"category":"gain"},{"id":"i4","text":{"fr":"","en":"Interest on a loan measured at amortised cost","es":""},"category":"int"},{"id":"i5","text":{"fr":"","en":"Net valuation loss on a derivative at fair value through profit or loss","es":""},"category":"gain"},{"id":"i6","text":{"fr":"","en":"Interest on a bond measured at fair value through OCI","es":""},"category":"int"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000012","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.POSITION_PERFORMANCE.RECLASSIFICATION"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"FINANCE","tested_point":"RECLASS_CONDITIONS_TF","difficulty":"INTERMEDIATE","estimated_time_s":45,"lesson_id":"LS.IFRS7.000002","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000002","section_id":"rule-reclass"},"references":["IFRS 7 §12B"],"exercise":{"prompt":{"fr":"","en":"IFRS 7 sets out the conditions in which a financial asset may be reclassified from one category to another.","es":""},"explanation":{"fr":"","en":"The conditions of reclassification belong to IFRS 9; IFRS 7 deals with the information to disclose when it takes place (IFRS 7).","es":""},"common_error":{"fr":"","en":"Looking in IFRS 7 for the measurement rules of reclassification.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000013","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.POSITION_PERFORMANCE.RECLASSIFICATION"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"ENERGY","tested_point":"RECLASS_DIVISION_OF_WORK","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IFRS7.000002","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000002","section_id":"rule-reclass"},"references":["IFRS 7 §12B"],"exercise":{"prompt":{"fr":"","en":"An entity reclassifies a bond portfolio after a change in business model. Which split of work is correct?","es":""},"explanation":{"fr":"","en":"IFRS 9 governs reclassification; IFRS 7 governs the disclosure (IFRS 7).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"IFRS 9 sets the conditions and the date; the note explains it under IFRS 7","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The conditions come from IFRS 7; IFRS 9 requires them to be explained in the note on instruments","es":""},"correct":false,"feedback":{"fr":"","en":"The roles are reversed: IFRS 9 sets the conditions, IFRS 7 asks for the explanation (IFRS 7).","es":""}},{"id":"C","text":{"fr":"","en":"IAS 32 sets the conditions; IFRS 7 sets the date","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 32 deals with the liability or equity distinction, not the reclassification of an asset.","es":""}},{"id":"D","text":{"fr":"","en":"The entity chooses its reclassification date with no framework","es":""},"correct":false,"feedback":{"fr":"","en":"Reclassification follows the conditions of the measurement framework (IFRS 9) and the note explains it (IFRS 7).","es":""}}]},"scope":"CORE_STUDENT","reserve":true},{"key":"LX.IFRS7.000014","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.POSITION_PERFORMANCE.INCOME_EXPENSE"],"dimension":"CALCULATION","format":"CALCULATION","context":"RETAIL","tested_point":"INTEREST_TOTAL_NO_DOUBLE_COUNT","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS7.000002","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000002","section_id":"numeric-income"},"references":["IFRS 7 §20"],"exercise":{"prompt":{"fr":"","en":"Ostrel SA has, for the year, €520,000 of interest on loans at amortised cost (including €24,000 of origination fees already built into the effective rate), €94,000 of interest on FVOCI bonds and €38,000 of account-keeping fees outside the effective rate. Calculate total interest and the fees to present separately.","es":""},"explanation":{"fr":"","en":"Total interest: €520,000 + €94,000 = €614,000. The €24,000 of origination fees are already in the €520,000: they are not added. Separate fees: €38,000 (IFRS 7).","es":""},"common_error":{"fr":"","en":"Adding the €24,000 of origination fees to total interest or to fees.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Interest on loans","es":""},"value":"520000","unit":"EUR"},{"label":{"fr":"","en":"Of which origination fees in the effective rate","es":""},"value":"24000","unit":"EUR"},{"label":{"fr":"","en":"Interest on FVOCI bonds","es":""},"value":"94000","unit":"EUR"},{"label":{"fr":"","en":"Account-keeping fees outside the effective rate","es":""},"value":"38000","unit":"EUR"}],"steps":[{"id":"a","label":{"fr":"","en":"Total interest","es":""},"answer":614000,"tolerance":0,"unit":"EUR"},{"id":"b","label":{"fr":"","en":"Fees to present separately","es":""},"answer":38000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a","meaning":{"fr":"","en":"Total interest","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Interest on loans","es":""},"value":520000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Interest on FVOCI bonds","es":""},"value":94000,"unit":"EUR"}],"result":614000,"unit":"EUR"}],"rationale":{"fr":"","en":"Separate fees: €38,000 (IFRS 7).","es":""},"references":["REF.IFRS7.20"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000015","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.POSITION_PERFORMANCE.OFFSETTING_DISCLOSURES"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"FINANCE","tested_point":"OFFSETTING_OBJECTIVE","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS7.000003","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000003","section_id":"rule-scope"},"references":["IFRS 7 §13A","IFRS 7 §13B"],"exercise":{"prompt":{"fr":"","en":"What is the objective of the IFRS 7 offsetting table?","es":""},"explanation":{"fr":"","en":"The table lets users assess the effect or potential effect of netting arrangements on financial position (IFRS 7).","es":""},"common_error":{"fr":"","en":"Applying the offsetting criteria in IFRS 7.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"To decide whether an asset and a liability must be presented at their net amount in the statement of financial position","es":""},"correct":false,"feedback":{"fr":"","en":"The offsetting criteria are in IAS 32; the IFRS 7 table is a disclosure (IFRS 7).","es":""}},{"id":"B","text":{"fr":"","en":"To assess the effect, or potential effect, of netting arrangements on financial position","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"To measure the expected credit loss on derivatives","es":""},"correct":false,"feedback":{"fr":"","en":"Measuring expected losses belongs to IFRS 9, not to the offsetting table (IFRS 7).","es":""}},{"id":"D","text":{"fr":"","en":"To reduce the gross amount of instruments in the balance sheet","es":""},"correct":false,"feedback":{"fr":"","en":"The table does not act on the balance sheet: it explains its gross, offset and net amounts (IFRS 7).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000016","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.POSITION_PERFORMANCE.OFFSETTING_DISCLOSURES"],"dimension":"CALCULATION","format":"CALCULATION","context":"FINANCE","tested_point":"OFFSETTING_NET_WITH_CAP","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IFRS7.000003","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000003","section_id":"numeric-net"},"references":["IFRS 7 §13C"],"exercise":{"prompt":{"fr":"","en":"Carvin SA has, with a bank, derivative liabilities of €960,000 gross, of which €360,000 are offset. It also has related financial instruments not offset (master agreement) of €380,000 and has given cash collateral of €150,000. Case convention: deductions are capped at the net amount presented. Calculate the net amount presented and then the net amount.","es":""},"explanation":{"fr":"","en":"Net amount presented: €960,000 − €360,000 = €600,000. Deductions: €380,000 + €150,000 = €530,000, below the cap of €600,000. Net amount: €600,000 − €530,000 = €70,000 (IFRS 7).","es":""},"common_error":{"fr":"","en":"Starting from the gross amount instead of the net amount presented when deducting related instruments and collateral.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Gross amount","es":""},"value":"960000","unit":"EUR"},{"label":{"fr":"","en":"Amount offset","es":""},"value":"360000","unit":"EUR"},{"label":{"fr":"","en":"Related financial instruments not offset","es":""},"value":"380000","unit":"EUR"},{"label":{"fr":"","en":"Cash collateral given","es":""},"value":"150000","unit":"EUR"}],"steps":[{"id":"a","label":{"fr":"","en":"Net amount presented","es":""},"answer":600000,"tolerance":0,"unit":"EUR"},{"id":"b","label":{"fr":"","en":"Net amount","es":""},"answer":70000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a","meaning":{"fr":"","en":"Net amount presented","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Gross amount","es":""},"value":960000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Amount offset","es":""},"value":360000,"unit":"EUR"}],"result":600000,"unit":"EUR"},{"step":"b","meaning":{"fr":"","en":"Net amount","es":""},"expression":"a - 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A model based on unobservable inputs gives an initial fair value of €530,000. What can be said about the €30,000 difference?","es":""},"explanation":{"fr":"","en":"A difference between initial fair value and transaction price, based on unobservable inputs, calls for disclosure (IFRS 7).","es":""},"common_error":{"fr":"","en":"Believing the transaction price excuses explaining the difference.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It calls for no information, since the transaction price prevails over the model","es":""},"correct":false,"feedback":{"fr":"","en":"A difference based on unobservable inputs calls for information (IFRS 7).","es":""}},{"id":"B","text":{"fr":"","en":"It calls for information when the model inputs are observable","es":""},"correct":false,"feedback":{"fr":"","en":"It is the other way round: it is unobservable inputs that trigger the information (IFRS 7).","es":""}},{"id":"C","text":{"fr":"","en":"Unobservable inputs: it calls for information in the note","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"It is income to be recognised and the note need not explain it","es":""},"correct":false,"feedback":{"fr":"","en":"The treatment of the difference belongs to IFRS 9 and IFRS 13; the IFRS 7 information comes on top.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000020","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.FAIR_VALUE.FAIR_VALUE_DISCLOSURES"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"RETAIL","tested_point":"SHORT_TERM_RECEIVABLE_FV","difficulty":"INTERMEDIATE","estimated_time_s":45,"lesson_id":"LS.IFRS7.000004","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000004","section_id":"rule-fv"},"references":["IFRS 7 §29"],"exercise":{"prompt":{"fr":"","en":"A 30-day trade receivable whose carrying amount reasonably approximates its fair value may give rise to no fair value information.","es":""},"explanation":{"fr":"","en":"The exception covers instruments whose carrying amount reasonably approximates fair value, for example short-term receivables (IFRS 7).","es":""},"common_error":{"fr":"","en":"Giving the fair value of a short-term instrument without need.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000021","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.FAIR_VALUE.FAIR_VALUE_DISCLOSURES"],"dimension":"APPLICATION","format":"CLASSIFICATION","context":"FINANCE","tested_point":"FV_TO_PROVIDE_SORT","difficulty":"INTERMEDIATE","estimated_time_s":110,"lesson_id":"LS.IFRS7.000004","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000004","section_id":"example-fv"},"references":["IFRS 7 §29"],"exercise":{"prompt":{"fr":"","en":"Case convention: these instruments are at amortised cost and market rates have risen sharply since origination. Sort them according to whether the carrying amount approximates fair value or fair value is to be provided.","es":""},"explanation":{"fr":"","en":"Fair value is given for instruments at amortised cost too, unless the carrying amount is a reasonable approximation of it, as for short-term items (IFRS 7).","es":""},"common_error":{"fr":"","en":"Omitting the fair value of a long-term instrument because its carrying amount is an amortised cost.","es":""},"format":"CLASSIFICATION","categories":[{"id":"approx","text":{"fr":"","en":"Carrying amount close to fair value","es":""}},{"id":"fv","text":{"fr":"","en":"Fair value to be provided","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"12-year fixed-rate bank borrowing","es":""},"category":"fv"},{"id":"i2","text":{"fr":"","en":"7-year fixed-rate loan granted to a business partner","es":""},"category":"fv"},{"id":"i3","text":{"fr":"","en":"Demand balance of a bank account","es":""},"category":"approx"},{"id":"i4","text":{"fr":"","en":"Trade receivable due in 30 days","es":""},"category":"approx"},{"id":"i5","text":{"fr":"","en":"10-year fixed-rate bond issued at a rate below the current rate","es":""},"category":"fv"},{"id":"i6","text":{"fr":"","en":"Trade payable due in 15 days","es":""},"category":"approx"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000022","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.INTERACTIONS.IFRS13"],"dimension":"RECOGNITION","format":"MATCHING","context":"FINANCE","tested_point":"FAIR_VALUE_ROLE_MATCH","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS7.000004","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000004","section_id":"rule-ifrs13"},"references":["IFRS 7"],"exercise":{"prompt":{"fr":"","en":"Match each item to the standard or disclosure that deals with it.","es":""},"explanation":{"fr":"","en":"Fair value and its hierarchy belong to IFRS 13, classification to IFRS 9; IFRS 7 has things explained and quantified (IFRS 7).","es":""},"common_error":{"fr":"","en":"Looking for the fair value hierarchy in IFRS 7.","es":""},"format":"MATCHING","left":[{"id":"l1","text":{"fr":"","en":"Fair value hierarchy in three levels","es":""}},{"id":"l2","text":{"fr":"","en":"Difference between initial fair value and transaction price, based on unobservable inputs","es":""}},{"id":"l3","text":{"fr":"","en":"Choice to measure an instrument at fair value through profit or loss","es":""}},{"id":"l4","text":{"fr":"","en":"Carrying amount of each category of instruments","es":""}}],"right":[{"id":"r1","text":{"fr":"","en":"Defined by IFRS 13","es":""}},{"id":"r3","text":{"fr":"","en":"Falls under classification in IFRS 9","es":""}},{"id":"r4","text":{"fr":"","en":"Amount quantified by category in the IFRS 7 table","es":""}},{"id":"r2","text":{"fr":"","en":"Difference that is the subject of separate disclosure under IFRS 7","es":""}}],"pairs":[{"left":"l1","right":"r1"},{"left":"l2","right":"r2"},{"left":"l3","right":"r3"},{"left":"l4","right":"r4"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000023","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.INTERACTIONS.IFRS13"],"dimension":"RULE_KNOWLEDGE","format":"FILL_BLANK","context":"GENERIC","tested_point":"FAIR_VALUE_FILL_BLANK","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS7.000004","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000004","section_id":"rule-ifrs13"},"references":["IFRS 7"],"exercise":{"prompt":{"fr":"","en":"Complete the sentence.","es":""},"explanation":{"fr":"","en":"The fair value hierarchy belongs to IFRS 13; IFRS 7 refers to it and adds what is specific to financial instruments (IFRS 7).","es":""},"common_error":{"fr":"","en":"Looking for the fair value hierarchy in IFRS 7.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"The {{b1}} of fair values is defined by {{b2}}; {{b3}} adds only information specific to financial instruments.","es":""},"blanks":[{"id":"b1","mode":"CHOICE","choices":[{"id":"a","text":{"fr":"","en":"hierarchy","es":""}},{"id":"b","text":{"fr":"","en":"offsetting","es":""}},{"id":"c","text":{"fr":"","en":"impairment","es":""}}],"answer":"a"},{"id":"b2","mode":"CHOICE","choices":[{"id":"a","text":{"fr":"","en":"IFRS 13","es":""}},{"id":"b","text":{"fr":"","en":"IAS 32","es":""}},{"id":"c","text":{"fr":"","en":"IFRS 9","es":""}}],"answer":"a"},{"id":"b3","mode":"CHOICE","choices":[{"id":"a","text":{"fr":"","en":"IFRS 7","es":""}},{"id":"b","text":{"fr":"","en":"IFRS 13","es":""}},{"id":"c","text":{"fr":"","en":"IAS 7","es":""}}],"answer":"a"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000024","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.HEDGING.HEDGE_OVERVIEW"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"ENERGY","tested_point":"ECONOMIC_HEDGE_SCOPE","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS7.000004","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000004","section_id":"rule-hedge"},"references":["IFRS 7 §21A","IFRS 7 §21B"],"exercise":{"prompt":{"fr":"","en":"An entity economically hedges an interest rate risk with a derivative that it does not designate in hedge accounting. What about the hedging disclosures?","es":""},"explanation":{"fr":"","en":"Hedging disclosures cover hedged exposures for which hedge accounting is applied (IFRS 7).","es":""},"common_error":{"fr":"","en":"Providing hedging disclosures for an exposure hedged only economically.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is in them, because an economic hedge is enough to trigger these hedging disclosures","es":""},"correct":false,"feedback":{"fr":"","en":"These disclosures cover exposures for which hedge accounting is applied (IFRS 7).","es":""}},{"id":"B","text":{"fr":"","en":"This exposure is not in them; the derivative remains covered by the other disclosures","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It is in them with a mention that there is no designation","es":""},"correct":false,"feedback":{"fr":"","en":"Without hedge accounting, the exposure is not within these disclosures (IFRS 7).","es":""}},{"id":"D","text":{"fr":"","en":"The derivative disappears from the notes for lack of designation","es":""},"correct":false,"feedback":{"fr":"","en":"A non-designated derivative remains a financial instrument: it appears in the other disclosures (IFRS 7).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000025","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.HEDGING.HEDGE_OVERVIEW"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"ENERGY","tested_point":"HEDGING_NOTE_ERROR_SPOT","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS7.000004","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000004","section_id":"rule-hedge"},"references":["IFRS 7 §21A","IFRS 7 §21B"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statement about hedging disclosures.","es":""},"explanation":{"fr":"","en":"A single note or a separate section brings the hedging disclosures together (IFRS 7).","es":""},"common_error":{"fr":"","en":"Scattering the hedging disclosures across several notes.","es":""},"format":"ERROR_SPOT","statements":[{"id":"s1","text":{"fr":"","en":"They apply to hedged exposures for which the entity applies hedge accounting.","es":""},"erroneous":false},{"id":"s2","text":{"fr":"","en":"They are presented in a single note or in a separate section of the financial statements.","es":""},"erroneous":false},{"id":"s3","text":{"fr":"","en":"They are scattered in the notes on each risk, with no separate note or section.","es":""},"erroneous":true,"correction":{"fr":"","en":"They are presented in a single note or a separate section, with cross-references to information elsewhere possible (IFRS 7).","es":""}},{"id":"s4","text":{"fr":"","en":"A cross-reference to information found elsewhere in the financial statements is possible.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000026","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.RISKS.NATURE_AND_EXTENT"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"RISK_TYPES_SINGLE","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IFRS7.000005","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000005","section_id":"understand"},"references":["IFRS 7 §31"],"exercise":{"prompt":{"fr":"","en":"Which risks does the note on financial instruments cover?","es":""},"explanation":{"fr":"","en":"The note covers the risks arising from financial instruments: credit, liquidity and market (IFRS 7).","es":""},"common_error":{"fr":"","en":"Documenting only credit risk.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Credit, liquidity and market risks","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Credit and market risks, liquidity being a matter for IAS 7","es":""},"correct":false,"feedback":{"fr":"","en":"Liquidity is one of the risks arising from financial instruments covered by the note (IFRS 7).","es":""}},{"id":"C","text":{"fr":"","en":"The credit risk of customers, other risks being for the management report","es":""},"correct":false,"feedback":{"fr":"","en":"Liquidity and market risks arising from instruments are in the note too (IFRS 7).","es":""}},{"id":"D","text":{"fr":"","en":"Operational risks, such as a plant shutdown","es":""},"correct":false,"feedback":{"fr":"","en":"The note concerns risks arising from financial instruments, not operational risks (IFRS 7, para. 31).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000027","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.RISKS.NATURE_AND_EXTENT"],"dimension":"APPLICATION","format":"MULTIPLE_CHOICE","context":"FOOD","tested_point":"RISK_TYPES_PORTFOLIO","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS7.000005","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000005","section_id":"understand"},"references":["IFRS 7 §31"],"exercise":{"prompt":{"fr":"","en":"A group holds receivables from distributors, borrows at floating rates and buys raw materials in dollars. Which risks arising from its instruments must the note cover? (several answers)","es":""},"explanation":{"fr":"","en":"Credit, liquidity and market are the risks arising from financial instruments that the note lets users assess (IFRS 7).","es":""},"common_error":{"fr":"","en":"Forgetting a type of risk because it is less visible than credit.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Market risk linked to the floating rate and the dollar exchange rate","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Liquidity risk attached to settling the financial liabilities","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The risk of turnover among management staff","es":""},"correct":false,"feedback":{"fr":"","en":"This risk does not arise from a financial instrument (IFRS 7, para. 31).","es":""}},{"id":"D","text":{"fr":"","en":"Credit risk on the distributors' receivables","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"The reputational risk linked to an advertising campaign","es":""},"correct":false,"feedback":{"fr":"","en":"An advertising campaign is not a financial instrument (IFRS 7, para. 31).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000028","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.RISKS.QUALITATIVE","IFRS7.RISKS.QUANTITATIVE"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"INDUSTRY","tested_point":"QUAL_QUANT_SORT","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IFRS7.000005","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000005","section_id":"rule-quantitative"},"references":["IFRS 7 §33","IFRS 7 §34"],"exercise":{"prompt":{"fr":"","en":"Sort each item of the risk note as qualitative or quantitative.","es":""},"explanation":{"fr":"","en":"The qualitative part explains how risks arise and are managed (IFRS 7, para. 33); the quantitative part quantifies exposure at the reporting date and concentrations (IFRS 7).","es":""},"common_error":{"fr":"","en":"Giving figures without explaining the origin and management of the risk.","es":""},"format":"CLASSIFICATION","categories":[{"id":"qual","text":{"fr":"","en":"Qualitative","es":""}},{"id":"quant","text":{"fr":"","en":"Quantitative","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Share of receivables owed by the three largest customers","es":""},"category":"quant"},{"id":"i2","text":{"fr":"","en":"Description of credit limits per customer and of the monthly review of arrears","es":""},"category":"qual"},{"id":"i3","text":{"fr":"","en":"Description of how the entity manages its liquidity risk","es":""},"category":"qual"},{"id":"i4","text":{"fr":"","en":"Explanation of how currency risk arises from purchases in dollars","es":""},"category":"qual"},{"id":"i5","text":{"fr":"","en":"Table of contractual flows by maturity band","es":""},"category":"quant"},{"id":"i6","text":{"fr":"","en":"Amount of the exposure to credit risk at the reporting date","es":""},"category":"quant"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000029","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.RISKS.QUALITATIVE"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"FOOD","tested_point":"QUALITATIVE_ERROR_SPOT","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS7.000005","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000005","section_id":"rule-qualitative"},"references":["IFRS 7 §33"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statement about qualitative information on risks.","es":""},"explanation":{"fr":"","en":"Qualitative information describes how risks arise and are managed, in light of the actual exposure (IFRS 7, para. 33).","es":""},"common_error":{"fr":"","en":"Reproducing generalities with no link to the real exposure.","es":""},"format":"ERROR_SPOT","statements":[{"id":"s1","text":{"fr":"","en":"For each type of risk, the entity explains how the risk arises.","es":""},"erroneous":false},{"id":"s2","text":{"fr":"","en":"For each type of risk, the entity explains how the risk is managed.","es":""},"erroneous":false},{"id":"s3","text":{"fr":"","en":"The same general description may be reused for all entities of a sector, with no link to their own exposure.","es":""},"erroneous":true,"correction":{"fr":"","en":"The description must reflect the entity's actual exposure: a generality is not enough (IFRS 7, para. 33).","es":""}},{"id":"s4","text":{"fr":"","en":"The description must reflect the entity's actual exposure.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000030","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.RISKS.QUANTITATIVE"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"QUANT_CONCENTRATION_TF","difficulty":"BEGINNER","estimated_time_s":30,"lesson_id":"LS.IFRS7.000005","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000005","section_id":"rule-quantitative"},"references":["IFRS 7 §34"],"exercise":{"prompt":{"fr":"","en":"Quantitative information covers the exposure to each type of risk at the reporting date and the concentration of risk.","es":""},"explanation":{"fr":"","en":"This is the content of the quantitative information (IFRS 7).","es":""},"common_error":{"fr":"","en":"Forgetting to flag a risk concentration.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT","reserve":true},{"key":"LX.IFRS7.000031","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.RISKS.QUANTITATIVE"],"dimension":"CALCULATION","format":"CALCULATION","context":"RETAIL","tested_point":"CONCENTRATION_PERCENTAGE","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS7.000005","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000005","section_id":"example"},"references":["IFRS 7 §34"],"exercise":{"prompt":{"fr":"","en":"At the reporting date, Pavane SA's trade receivables amount to €8,400,000. The largest debtor owes €3,570,000 and the second €1,260,000. Case convention: no percentage is a threshold of the standard. Calculate the share of the largest debtor, then of the two largest.","es":""},"explanation":{"fr":"","en":"Largest debtor: €3,570,000 ÷ €8,400,000 = 42.5%. Two largest: (€3,570,000 + €1,260,000) ÷ €8,400,000 = €4,830,000 ÷ €8,400,000 = 57.5%. These shares describe the concentration; they are not thresholds (IFRS 7).","es":""},"common_error":{"fr":"","en":"Dividing by the largest debtor's amount instead of total receivables.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Trade receivables","es":""},"value":"8400000","unit":"EUR"},{"label":{"fr":"","en":"Largest debtor","es":""},"value":"3570000","unit":"EUR"},{"label":{"fr":"","en":"Second debtor","es":""},"value":"1260000","unit":"EUR"}],"steps":[{"id":"a","label":{"fr":"","en":"Share of the largest debtor (in %)","es":""},"answer":42.5,"tolerance":0,"unit":"PERCENT"},{"id":"b","label":{"fr":"","en":"Share of the two largest debtors (in %)","es":""},"answer":57.5,"tolerance":0,"unit":"PERCENT"}],"formula":{"lines":[{"step":"a","meaning":{"fr":"","en":"Share of the largest debtor (in %)","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Largest debtor","es":""},"value":3570000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Trade receivables","es":""},"value":8400000,"unit":"EUR"}],"result":42.5,"unit":"PERCENT"},{"step":"b","meaning":{"fr":"","en":"Share of the two largest debtors (in %)","es":""},"expression":"(a + b) / c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Largest debtor","es":""},"value":3570000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Second debtor","es":""},"value":1260000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Trade receivables","es":""},"value":8400000,"unit":"EUR"}],"result":57.5,"unit":"PERCENT"}],"references":["REF.IFRS7.34"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000032","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.RISKS.QUANTITATIVE"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"QUANT_CONTENT_SINGLE","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS7.000005","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000005","section_id":"rule-quantitative"},"references":["IFRS 7 §34"],"exercise":{"prompt":{"fr":"","en":"Which statement about quantitative information on risks is correct?","es":""},"explanation":{"fr":"","en":"Quantitative information on the exposure to each type of risk at the reporting date and on concentration (IFRS 7).","es":""},"common_error":{"fr":"","en":"Giving only qualitative text or only figures.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"They excuse the qualitative description when amounts are large","es":""},"correct":false,"feedback":{"fr":"","en":"Quantitative information complements the qualitative description without replacing it (IFRS 7, para. 33).","es":""}},{"id":"B","text":{"fr":"","en":"They concern the average exposure over the whole year, not the exposure at the reporting date","es":""},"correct":false,"feedback":{"fr":"","en":"The information concerns the exposure at the reporting date (IFRS 7).","es":""}},{"id":"C","text":{"fr":"","en":"They are limited to the sensitivity analysis for market risk","es":""},"correct":false,"feedback":{"fr":"","en":"Sensitivity is a separate requirement; quantitative information covers the exposure to each risk (IFRS 7).","es":""}},{"id":"D","text":{"fr":"","en":"They quantify each risk at the reporting date and its concentrations","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000033","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.RISKS.NATURE_AND_EXTENT","IFRS7.RISKS.QUALITATIVE","IFRS7.RISKS.QUANTITATIVE"],"dimension":"APPLICATION","format":"MINI_CASE","context":"TECH","tested_point":"RISK_NOTE_MINI_CASE","difficulty":"INTERMEDIATE","estimated_time_s":210,"lesson_id":"LS.IFRS7.000005","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000005","section_id":"example"},"references":["IFRS 7 §31","IFRS 7 §33","IFRS 7 §34"],"exercise":{"prompt":{"fr":"","en":"Build the structure of the risk note for Quiller SA.","es":""},"explanation":{"fr":"","en":"The note covers credit, liquidity and market (IFRS 7), with the qualitative part (IFRS 7, para. 33) and the quantitative part, concentrations included (IFRS 7).","es":""},"common_error":{"fr":"","en":"Treating the note as a mere list of amounts.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"*Teaching assumption*: Quiller SA, a software publisher, has receivables of €4,000,000, of which €2,600,000 are with a single large account. It borrows €3,000,000 at a floating rate and invoices part of its sales in dollars. It sets credit limits per customer and hedges part of the currency risk with derivatives.","es":""},"parts":[{"prompt":{"fr":"","en":"Which types of risk must the note cover?","es":""},"explanation":{"fr":"","en":"The note covers credit, liquidity and market (IFRS 7).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Credit, since receivables are the main item","es":""},"correct":false,"feedback":{"fr":"","en":"The borrowing and the dollar also create liquidity and market risks (IFRS 7).","es":""}},{"id":"B","text":{"fr":"","en":"Market, since the entity hedges the dollar","es":""},"correct":false,"feedback":{"fr":"","en":"Hedging reduces currency risk; it does not remove credit and liquidity risks (IFRS 7).","es":""}},{"id":"C","text":{"fr":"","en":"Credit (receivables), liquidity (borrowing) and market (floating rate, dollar)","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Liquidity and market, credit being covered by the credit limits set per customer","es":""},"correct":false,"feedback":{"fr":"","en":"The limits manage credit risk; they do not make it disappear from the note (IFRS 7, para. 33).","es":""}}],"id":"p1","dimension":"RECOGNITION"},{"prompt":{"fr":"","en":"For credit risk, which qualitative information is expected?","es":""},"explanation":{"fr":"","en":"The qualitative part describes how the risk arises and is managed (IFRS 7, para. 33).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"How the risk arises (credit sales) and how it is managed (limits per customer)","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The exact amount of the largest customer account","es":""},"correct":false,"feedback":{"fr":"","en":"An amount is quantitative, not qualitative, information (IFRS 7, para. 33).","es":""}},{"id":"C","text":{"fr":"","en":"The list of the main customers with their revenue, with no link to how the risk is managed","es":""},"correct":false,"feedback":{"fr":"","en":"A list says neither how the risk arises nor how it is managed (IFRS 7, para. 33).","es":""}},{"id":"D","text":{"fr":"","en":"A general sentence on the quality of the sector's customers","es":""},"correct":false,"feedback":{"fr":"","en":"A sector generality does not reflect the entity's actual exposure (IFRS 7, para. 33).","es":""}}],"id":"p2","dimension":"APPLICATION"},{"prompt":{"fr":"","en":"The large account representing €2,600,000 of €4,000,000 of receivables is a credit risk concentration to document in the quantitative information.","es":""},"explanation":{"fr":"","en":"A counterparty carrying a large share of receivables is a concentration to quantify; the percentage (65%) is case data, not a threshold (IFRS 7).","es":""},"common_error":{"fr":"","en":"Treating the 65% as a normative threshold: it is a case fact; concentration is a matter of judgement.","es":""},"format":"TRUE_FALSE","answer":true,"id":"p3","dimension":"RECOGNITION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000034","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.CREDIT_RISK.RISK_MANAGEMENT_PRACTICES"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"FINANCE","tested_point":"PRACTICES_DRAFTING","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS7.000006","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000006","section_id":"rule-practices"},"references":["IFRS 7 §35F"],"exercise":{"prompt":{"fr":"","en":"A preparer drafts the description of credit risk management practices. Which drafting meets the expectation of IFRS 7?","es":""},"explanation":{"fr":"","en":"The description links practices to the measurement of expected losses, including the significant increase in risk and the low credit risk exemption (IFRS 7).","es":""},"common_error":{"fr":"","en":"Describing commercial credit policy without linking it to expected losses.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It repeats the receivables collection policy without mentioning expected credit losses","es":""},"correct":false,"feedback":{"fr":"","en":"The description must link to the measurement of expected losses (IFRS 7).","es":""}},{"id":"B","text":{"fr":"","en":"It explains the test for a significant increase in credit risk","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It lists the large customers with their revenue","es":""},"correct":false,"feedback":{"fr":"","en":"A customer list does not explain the management practices or their link with expected losses (IFRS 7).","es":""}},{"id":"D","text":{"fr":"","en":"It describes the insurance taken out with no link to measurement","es":""},"correct":false,"feedback":{"fr":"","en":"With no link to the measurement of expected losses, the description does not meet the expectation (IFRS 7).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000035","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.CREDIT_RISK.RISK_MANAGEMENT_PRACTICES"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"FINANCE","tested_point":"PRACTICES_LOW_RISK_EXEMPTION","difficulty":"BEGINNER","estimated_time_s":30,"lesson_id":"LS.IFRS7.000006","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000006","section_id":"rule-practices"},"references":["IFRS 7 §35F"],"exercise":{"prompt":{"fr":"","en":"The description of credit risk management practices also explains whether the entity uses the low credit risk exemption.","es":""},"explanation":{"fr":"","en":"The description covers how a significant increase in risk is assessed and the use of the low credit risk exemption (IFRS 7).","es":""},"common_error":{"fr":"","en":"Forgetting the low credit risk exemption in the description.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000036","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.CREDIT_RISK.RISK_MANAGEMENT_PRACTICES"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"FINANCE","tested_point":"PRACTICES_ERROR_SPOT","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS7.000006","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000006","section_id":"rule-practices"},"references":["IFRS 7 §35F"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statement about the description of credit risk management practices.","es":""},"explanation":{"fr":"","en":"The description is the entity's own and links its practices to the measurement of expected losses (IFRS 7).","es":""},"common_error":{"fr":"","en":"Taking a model description for a rule of the standard.","es":""},"format":"ERROR_SPOT","statements":[{"id":"s1","text":{"fr":"","en":"It reuses a standard model set by IFRS 7, identical for all entities.","es":""},"erroneous":true,"correction":{"fr":"","en":"IFRS 7 sets no model: the description reflects the entity's own practices (IFRS 7).","es":""}},{"id":"s2","text":{"fr":"","en":"The description links to the measurement of expected credit losses.","es":""},"erroneous":false},{"id":"s3","text":{"fr":"","en":"It states how the entity assesses a significant increase in credit risk.","es":""},"erroneous":false},{"id":"s4","text":{"fr":"","en":"It reflects what the entity actually does to manage its credit risk.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000037","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.CREDIT_RISK.EXPOSURE_BY_RATING_GRADE"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"FINANCE","tested_point":"ECL_BASIS_COLUMNS_SORT","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS7.000006","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000006","section_id":"rule-grades"},"references":["IFRS 7 §35M"],"exercise":{"prompt":{"fr":"","en":"Case convention: the classification of each asset is given. Place it in the column of the rating grade table that matches the basis of its loss allowance.","es":""},"explanation":{"fr":"","en":"The gross carrying amount is split according to whether the allowance reflects 12-month losses, lifetime losses (increased risk, credit-impaired, simplified approach) or assets credit-impaired from origination (IFRS 7, para. 35M).","es":""},"common_error":{"fr":"","en":"Omitting a category of expected losses so that the total differs from the gross carrying amount.","es":""},"format":"CLASSIFICATION","categories":[{"id":"m12","text":{"fr":"","en":"12-month losses","es":""}},{"id":"life","text":{"fr":"","en":"Lifetime, increased risk","es":""}},{"id":"imp","text":{"fr":"","en":"Lifetime, credit-impaired","es":""}},{"id":"simp","text":{"fr":"","en":"Lifetime, simplified approach","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Trade receivables whose allowance is calculated with a provision matrix","es":""},"category":"simp"},{"id":"i2","text":{"fr":"","en":"Loan whose credit risk has increased significantly, not credit-impaired","es":""},"category":"life"},{"id":"i3","text":{"fr":"","en":"Loan placed in increased risk after arrears, without being in default","es":""},"category":"life"},{"id":"i4","text":{"fr":"","en":"Loan in default, credit-impaired asset","es":""},"category":"imp"},{"id":"i5","text":{"fr":"","en":"Healthy loan granted last month, with no sign of deterioration","es":""},"category":"m12"},{"id":"i6","text":{"fr":"","en":"Loan whose credit risk has not increased significantly since origination","es":""},"category":"m12"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000038","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.CREDIT_RISK.EXPOSURE_BY_RATING_GRADE"],"dimension":"CALCULATION","format":"CALCULATION","context":"INDUSTRY","tested_point":"GRADE_TABLE_TOTALS","difficulty":"INTERMEDIATE","estimated_time_s":180,"lesson_id":"LS.IFRS7.000006","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000006","section_id":"numeric-grades"},"references":["IFRS 7 §35M"],"exercise":{"prompt":{"fr":"","en":"Hadrel SA presents its loan portfolio by grade (gross amounts in euros). Grade 1: 12-month €3,200,000. Grade 2: 12-month €1,450,000, increased risk €380,000. Grade 3: 12-month €210,000, increased risk €520,000. Grade 4: credit-impaired €260,000. The balance sheet shows a gross carrying amount of €6,080,000 for these loans. Calculate the total of each column, the grand total and the difference with the balance sheet.","es":""},"explanation":{"fr":"","en":"12-month: €3,200,000 + €1,450,000 + €210,000 = €4,860,000. Increased risk: €380,000 + €520,000 = €900,000. Total: €4,860,000 + €900,000 + €260,000 = €6,020,000. Difference: €6,080,000 − €6,020,000 = €60,000, a column or grade to look for before publishing (IFRS 7, para. 35M).","es":""},"common_error":{"fr":"","en":"Accepting a reconciliation difference without looking for it.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Grade 1: 12-month losses","es":""},"value":"3200000","unit":"EUR"},{"label":{"fr":"","en":"Grade 2: 12-month losses","es":""},"value":"1450000","unit":"EUR"},{"label":{"fr":"","en":"Grade 2: increased risk","es":""},"value":"380000","unit":"EUR"},{"label":{"fr":"","en":"Grade 3: 12-month losses","es":""},"value":"210000","unit":"EUR"},{"label":{"fr":"","en":"Grade 3: increased risk","es":""},"value":"520000","unit":"EUR"},{"label":{"fr":"","en":"Grade 4: credit-impaired","es":""},"value":"260000","unit":"EUR"},{"label":{"fr":"","en":"Gross carrying amount in the balance sheet","es":""},"value":"6080000","unit":"EUR"}],"steps":[{"id":"a","label":{"fr":"","en":"Total 12-month losses","es":""},"answer":4860000,"tolerance":0,"unit":"EUR"},{"id":"b","label":{"fr":"","en":"Total increased risk","es":""},"answer":900000,"tolerance":0,"unit":"EUR"},{"id":"c","label":{"fr":"","en":"Grand total of the table","es":""},"answer":6020000,"tolerance":0,"unit":"EUR"},{"id":"d","label":{"fr":"","en":"Difference with the balance sheet (balance sheet − table)","es":""},"answer":60000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a","meaning":{"fr":"","en":"Total 12-month losses","es":""},"expression":"a + b + c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Grade 1: 12-month losses","es":""},"value":3200000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Grade 2: 12-month losses","es":""},"value":1450000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Grade 3: 12-month losses","es":""},"value":210000,"unit":"EUR"}],"result":4860000,"unit":"EUR"},{"step":"b","meaning":{"fr":"","en":"Total increased risk","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Grade 2: increased risk","es":""},"value":380000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Grade 3: increased risk","es":""},"value":520000,"unit":"EUR"}],"result":900000,"unit":"EUR"},{"step":"c","meaning":{"fr":"","en":"Grand total of the table","es":""},"expression":"a + b + c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Total 12-month losses","es":""},"value":4860000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Total increased risk","es":""},"value":900000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Grade 4: credit-impaired","es":""},"value":260000,"unit":"EUR"}],"result":6020000,"unit":"EUR"},{"step":"d","meaning":{"fr":"","en":"Difference with the balance sheet (balance sheet − table)","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Gross carrying amount in the balance sheet","es":""},"value":6080000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Grand total of the table","es":""},"value":6020000,"unit":"EUR"}],"result":60000,"unit":"EUR"}],"rationale":{"fr":"","en":"Difference: €6,080,000 − €6,020,000 = €60,000, a column or grade to look for before publishing (IFRS 7, para. 35M).","es":""},"references":["REF.IFRS7.35M"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000039","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.CREDIT_RISK.EXPOSURE_BY_RATING_GRADE"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"INDUSTRY","tested_point":"GRADE_TABLE_CONTROL","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IFRS7.000006","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000006","section_id":"numeric-grades"},"references":["IFRS 7 §35M"],"exercise":{"prompt":{"fr":"","en":"The total of the rating grade table is €120,000 lower than the gross carrying amount of the portfolio in the balance sheet. Which check is needed?","es":""},"explanation":{"fr":"","en":"The total of the table by grade ties to the gross carrying amount; a difference reveals an omission (IFRS 7, para. 35M).","es":""},"common_error":{"fr":"","en":"Omitting a category of expected losses so that the total differs from the gross carrying amount.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Adjust the grades so that the total matches the balance sheet","es":""},"correct":false,"feedback":{"fr":"","en":"The grades reflect the rating system; the omission is corrected, not the grades (IFRS 7, para. 35M).","es":""}},{"id":"B","text":{"fr":"","en":"Deduct the loss allowance from the table total","es":""},"correct":false,"feedback":{"fr":"","en":"The table is built on the gross carrying amount, before the loss allowance (IFRS 7, para. 35M).","es":""}},{"id":"C","text":{"fr":"","en":"Accept the difference as a rating rounding","es":""},"correct":false,"feedback":{"fr":"","en":"A difference of this size is not rounding: it signals an omission to find (IFRS 7, para. 35M).","es":""}},{"id":"D","text":{"fr":"","en":"Look for an omitted column or grade","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000040","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.INTERACTIONS.IFRS9"],"dimension":"RECOGNITION","format":"MATCHING","context":"FINANCE","tested_point":"IFRS9_IFRS7_QUESTION_MATCH","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IFRS7.000006","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000006","section_id":"rule-ifrs9"},"references":["IFRS 7"],"exercise":{"prompt":{"fr":"","en":"Match each question to the standard that deals with it.","es":""},"explanation":{"fr":"","en":"IFRS 9 assesses and measures expected losses; IFRS 7 asks for practices to be described and exposure to be split (IFRS 7).","es":""},"common_error":{"fr":"","en":"Looking in IFRS 7 for the method of measuring expected losses.","es":""},"format":"MATCHING","left":[{"id":"l1","text":{"fr":"","en":"Has the credit risk of a loan increased significantly since origination?","es":""}},{"id":"l2","text":{"fr":"","en":"What is the expected credit loss of a receivables portfolio?","es":""}},{"id":"l3","text":{"fr":"","en":"How does the entity describe its credit risk management practices?","es":""}},{"id":"l4","text":{"fr":"","en":"How to split the exposure by rating grade?","es":""}}],"right":[{"id":"r2","text":{"fr":"","en":"Measurement under IFRS 9 (scenarios, provision matrix)","es":""}},{"id":"r3","text":{"fr":"","en":"Narrative description required by IFRS 7","es":""}},{"id":"r1","text":{"fr":"","en":"Assessment under IFRS 9","es":""}},{"id":"r4","text":{"fr":"","en":"Numerical table required by IFRS 7","es":""}}],"pairs":[{"left":"l1","right":"r1"},{"left":"l2","right":"r2"},{"left":"l3","right":"r3"},{"left":"l4","right":"r4"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000041","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.INTERACTIONS.IFRS9"],"dimension":"RULE_KNOWLEDGE","format":"FILL_BLANK","context":"GENERIC","tested_point":"IFRS9_IFRS7_FILL_BLANK","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS7.000006","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000006","section_id":"rule-ifrs9"},"references":["IFRS 7"],"exercise":{"prompt":{"fr":"","en":"Complete the sentence.","es":""},"explanation":{"fr":"","en":"IFRS 9 measures expected credit losses; IFRS 7 requires the corresponding disclosures (IFRS 7).","es":""},"common_error":{"fr":"","en":"Confusing the measurement of expected losses with the disclosure about them.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"{{b1}} measures expected credit losses; {{b2}} requires credit risk management practices to be explained and exposure to be split.","es":""},"blanks":[{"id":"b1","mode":"CHOICE","choices":[{"id":"a","text":{"fr":"","en":"IFRS 9","es":""}},{"id":"b","text":{"fr":"","en":"IFRS 7","es":""}},{"id":"c","text":{"fr":"","en":"IAS 32","es":""}}],"answer":"a"},{"id":"b2","mode":"CHOICE","choices":[{"id":"a","text":{"fr":"","en":"IFRS 7","es":""}},{"id":"b","text":{"fr":"","en":"IFRS 9","es":""}},{"id":"c","text":{"fr":"","en":"IAS 7","es":""}}],"answer":"a"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000042","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.CREDIT_RISK.ALLOWANCE_RECONCILIATION"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"FINANCE","tested_point":"ALLOWANCE_MOVEMENT_RECOGNITION","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IFRS7.000007","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000007","section_id":"rule-reconciliation"},"references":["IFRS 7 §35H"],"exercise":{"prompt":{"fr":"","en":"Which of these events explains part of the change in the loss allowance and appears in the reconciliation?","es":""},"explanation":{"fr":"","en":"Write-offs, charges, transfers between stages and exchange effects explain the changes in the loss allowance (IFRS 7).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The payment of the year's dividend to shareholders","es":""},"correct":false,"feedback":{"fr":"","en":"A dividend does not change the loss allowance on financial assets (IFRS 7).","es":""}},{"id":"B","text":{"fr":"","en":"The change in the company's share price","es":""},"correct":false,"feedback":{"fr":"","en":"The share price is not part of the loss allowance reconciliation (IFRS 7).","es":""}},{"id":"C","text":{"fr":"","en":"The write-off of an unrecoverable asset","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The purchase of an item of property, plant and equipment","es":""},"correct":false,"feedback":{"fr":"","en":"An item of property, plant and equipment is not a financial asset: it has no credit loss allowance (IFRS 7).","es":""}}]},"scope":"CORE_STUDENT","reserve":true},{"key":"LX.IFRS7.000043","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.CREDIT_RISK.ALLOWANCE_RECONCILIATION"],"dimension":"CALCULATION","format":"CALCULATION","context":"FINANCE","tested_point":"ALLOWANCE_ROLL_FORWARD_CHECK","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IFRS7.000007","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000007","section_id":"numeric-rollforward"},"references":["IFRS 7 §35H"],"exercise":{"prompt":{"fr":"","en":"Gerval SA presents the following reconciliation of its loss allowance: opening €280,000, net charge €95,000, allowance used for write-offs €64,000, exchange effects −€3,000 (decrease). The balance sheet shows €305,000 at closing. Calculate the closing balance of the reconciliation and the difference with the balance sheet.","es":""},"explanation":{"fr":"","en":"Closing: €280,000 + €95,000 − €64,000 − €3,000 = €308,000. Difference: €305,000 − €308,000 = −€3,000: the balance sheet is lower by €3,000, suggesting the exchange effect was counted twice or that the balance sheet ignores it (IFRS 7).","es":""},"common_error":{"fr":"","en":"Adding write-offs instead of deducting them.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Opening","es":""},"value":"280000","unit":"EUR"},{"label":{"fr":"","en":"Net charge","es":""},"value":"95000","unit":"EUR"},{"label":{"fr":"","en":"Write-offs (allowance used)","es":""},"value":"64000","unit":"EUR"},{"label":{"fr":"","en":"Exchange effects","es":""},"value":"-3000","unit":"EUR"},{"label":{"fr":"","en":"Closing balance in the balance sheet","es":""},"value":"305000","unit":"EUR"}],"steps":[{"id":"a","label":{"fr":"","en":"Closing balance of the reconciliation","es":""},"answer":308000,"tolerance":0,"unit":"EUR"},{"id":"b","label":{"fr":"","en":"Difference (balance sheet − reconciliation)","es":""},"answer":-3000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"b","meaning":{"fr":"","en":"Difference (balance sheet − reconciliation)","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Closing balance in the balance sheet","es":""},"value":305000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Closing balance of the reconciliation","es":""},"value":308000,"unit":"EUR"}],"result":-3000,"unit":"EUR"}],"rationale":{"fr":"","en":"Difference: €305,000 − €308,000 = −€3,000: the balance sheet is lower by €3,000, suggesting the exchange effect was counted twice or that the balance sheet ignores it (IFRS 7).","es":""},"references":["REF.IFRS7.35H"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000044","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.CREDIT_RISK.ALLOWANCE_RECONCILIATION"],"dimension":"CALCULATION","format":"CALCULATION","context":"INDUSTRY","tested_point":"ALLOWANCE_CHARGE_FROM_CLOSING","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS7.000007","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000007","section_id":"numeric-rollforward"},"references":["IFRS 7 §35H"],"exercise":{"prompt":{"fr":"","en":"Rendel SA has a loss allowance of €150,000 at the start and €190,000 at the end. It used €45,000 of allowance for write-offs; there is no exchange effect or recovery. Case convention: a single total. Calculate the net charge for the period.","es":""},"explanation":{"fr":"","en":"Net charge = closing − opening + write-offs = €190,000 − €150,000 + €45,000 = €85,000. Check: €150,000 + €85,000 − €45,000 = €190,000 (IFRS 7).","es":""},"common_error":{"fr":"","en":"Taking the simple change of €40,000 as the charge and forgetting the write-offs.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Opening","es":""},"value":"150000","unit":"EUR"},{"label":{"fr":"","en":"Closing","es":""},"value":"190000","unit":"EUR"},{"label":{"fr":"","en":"Allowance used (write-offs)","es":""},"value":"45000","unit":"EUR"}],"steps":[{"id":"a","label":{"fr":"","en":"Net charge for the period","es":""},"answer":85000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a","meaning":{"fr":"","en":"Net charge for the period","es":""},"expression":"a - b + c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Closing","es":""},"value":190000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Opening","es":""},"value":150000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Allowance used (write-offs)","es":""},"value":45000,"unit":"EUR"}],"result":85000,"unit":"EUR"}],"rationale":{"fr":"","en":"Check: €150,000 + €85,000 − €45,000 = €190,000 (IFRS 7).","es":""},"references":["REF.IFRS7.35H"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000045","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.CREDIT_RISK.ALLOWANCE_RECONCILIATION"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"FINANCE","tested_point":"WRITE_OFF_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS7.000007","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000007","section_id":"entry-allowance"},"references":["IFRS 7 §35H"],"exercise":{"prompt":{"fr":"","en":"Pardel SA holds a loan of €70,000 fully covered by a loss allowance of €70,000. No recovery is reasonably expected: the loan is written off. Record the write-off (the treatment is a matter for IFRS 9; the amount is given by the case).","es":""},"explanation":{"fr":"","en":"Loss allowance: debit of €70,000. Loan: credit of €70,000. Total debit €70,000 = total credit €70,000. Since the allowance is already built, no expense is recorded in profit or loss; the \"write-offs\" line of the reconciliation reduces the allowance by €70,000 (IFRS 7).","es":""},"common_error":{"fr":"","en":"Debiting the impairment expense on write-off of an asset already provided for.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"allow","text":{"fr":"","en":"Loss allowance","es":""}},{"id":"loan","text":{"fr":"","en":"Loan (gross)","es":""}},{"id":"exp","text":{"fr":"","en":"Impairment expense","es":""}},{"id":"cash","text":{"fr":"","en":"Cash","es":""}}],"lines":[{"id":"l1","account":"allow","side":"DEBIT","amount":70000,"given":["account","side"]},{"id":"l2","account":"loan","side":"CREDIT","amount":70000,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000046","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.CREDIT_RISK.ALLOWANCE_RECONCILIATION"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"FINANCE","tested_point":"ALLOWANCE_ERROR_SPOT","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS7.000007","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000007","section_id":"rule-reconciliation"},"references":["IFRS 7 §35H"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statement about the loss allowance reconciliation.","es":""},"explanation":{"fr":"","en":"A write-off uses the loss allowance and adds no expense if the asset is fully provided for (IFRS 7).","es":""},"common_error":{"fr":"","en":"Charging a write-off to the period's expense instead of the loss allowance.","es":""},"format":"ERROR_SPOT","statements":[{"id":"s1","text":{"fr":"","en":"The closing balance of the reconciliation equals the loss allowance in the statement of financial position.","es":""},"erroneous":false},{"id":"s2","text":{"fr":"","en":"A write-off uses the loss allowance already built.","es":""},"erroneous":false},{"id":"s3","text":{"fr":"","en":"Exchange effects appear in the reconciliation when they exist.","es":""},"erroneous":false},{"id":"s4","text":{"fr":"","en":"When a fully provided asset is written off, the period's impairment expense is debited.","es":""},"erroneous":true,"correction":{"fr":"","en":"The loss allowance is debited and the asset credited; the expense is not touched if the allowance is sufficient (IFRS 7).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000047","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.CREDIT_RISK.COLLATERAL_MAX_EXPOSURE"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"REAL_ESTATE","tested_point":"MAX_EXPOSURE_BEFORE_COLLATERAL","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IFRS7.000007","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000007","section_id":"rule-collateral"},"references":["IFRS 7 §35K","IFRS 7 §36"],"exercise":{"prompt":{"fr":"","en":"An entity has a loan of €900,000 secured by a property valued at €1,100,000. What maximum credit risk exposure does it give for this loan?","es":""},"explanation":{"fr":"","en":"Maximum exposure is given before deducting collateral (IFRS 7).","es":""},"common_error":{"fr":"","en":"Presenting maximum exposure net of collateral.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"€0, because the collateral exceeds the loan","es":""},"correct":false,"feedback":{"fr":"","en":"Maximum exposure is given before deducting collateral (IFRS 7).","es":""}},{"id":"B","text":{"fr":"","en":"€900,000, before deducting the collateral","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"€200,000, that is the collateral value less the loan","es":""},"correct":false,"feedback":{"fr":"","en":"This difference is an excess of collateral, not the maximum exposure (IFRS 7).","es":""}},{"id":"D","text":{"fr":"","en":"€1,100,000, that is the collateral value","es":""},"correct":false,"feedback":{"fr":"","en":"The value of collateral is not the credit exposure; it is described separately (IFRS 7).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000048","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.CREDIT_RISK.COLLATERAL_MAX_EXPOSURE"],"dimension":"CALCULATION","format":"CALCULATION","context":"REAL_ESTATE","tested_point":"REMAINING_EXPOSURE_CAP","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IFRS7.000007","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000007","section_id":"numeric-collateral"},"references":["IFRS 7 §35K","IFRS 7 §36"],"exercise":{"prompt":{"fr":"","en":"Practice reading: the analysis caps collateral at the exposure of each loan. Tarsin SA has two loans. Loan 1: exposure €650,000, collateral €780,000. Loan 2: exposure €400,000, collateral €170,000. Calculate the total collateral used and the remaining exposure.","es":""},"explanation":{"fr":"","en":"Loan 1: collateral capped at €650,000; remaining exposure 0. Loan 2: collateral €170,000; remaining exposure €230,000. Collateral used: €650,000 + €170,000 = €820,000. Remaining exposure: 0 + €230,000 = €230,000. The maximum exposure presented stays at €1,050,000, before collateral (IFRS 7).","es":""},"common_error":{"fr":"","en":"Offsetting one loan's excess collateral against another loan's exposure.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Loan 1: exposure","es":""},"value":"650000","unit":"EUR"},{"label":{"fr":"","en":"Loan 1: collateral value","es":""},"value":"780000","unit":"EUR"},{"label":{"fr":"","en":"Loan 2: exposure","es":""},"value":"400000","unit":"EUR"},{"label":{"fr":"","en":"Loan 2: collateral value","es":""},"value":"170000","unit":"EUR"}],"steps":[{"id":"a","label":{"fr":"","en":"Total collateral used (capped)","es":""},"answer":820000,"tolerance":0,"unit":"EUR"},{"id":"b","label":{"fr":"","en":"Total remaining exposure","es":""},"answer":230000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a","meaning":{"fr":"","en":"Total collateral used (capped)","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Loan 1: exposure","es":""},"value":650000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Loan 2: collateral value","es":""},"value":170000,"unit":"EUR"}],"result":820000,"unit":"EUR"}],"references":["REF.IFRS7.35K","REF.IFRS7.36"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000049","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.LIQUIDITY_MARKET.MATURITY_ANALYSIS"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"MATURITY_AMOUNTS_BASIS","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IFRS7.000008","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000008","section_id":"rule-undiscounted"},"references":["IFRS 7 §39","IFRS 7 §B11D"],"exercise":{"prompt":{"fr":"","en":"Which amounts appear in the maturity analysis of financial liabilities?","es":""},"explanation":{"fr":"","en":"The maturity analysis presents undiscounted contractual cash flows (IFRS 7).","es":""},"common_error":{"fr":"","en":"Presenting discounted flows or the carrying amount in the maturity analysis.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The carrying amounts of the liabilities at the reporting date","es":""},"correct":false,"feedback":{"fr":"","en":"The carrying amount is not a schedule of flows; the analysis covers contractual flows (IFRS 7).","es":""}},{"id":"B","text":{"fr":"","en":"The flows brought to present value at the entity's rate","es":""},"correct":false,"feedback":{"fr":"","en":"The analysis presents undiscounted flows, not present values (IFRS 7).","es":""}},{"id":"C","text":{"fr":"","en":"The payments management considers likely, whatever the terms","es":""},"correct":false,"feedback":{"fr":"","en":"It is the flows provided for in the contracts that count, not a management estimate (IFRS 7).","es":""}},{"id":"D","text":{"fr":"","en":"Undiscounted contractual cash flows, with interest","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000050","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.LIQUIDITY_MARKET.MATURITY_ANALYSIS"],"dimension":"CALCULATION","format":"CALCULATION","context":"TRANSPORT","tested_point":"MATURITY_BUCKET_TOTALS","difficulty":"INTERMEDIATE","estimated_time_s":180,"lesson_id":"LS.IFRS7.000008","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000008","section_id":"numeric-buckets"},"references":["IFRS 7 §39","IFRS 7 §B11D"],"exercise":{"prompt":{"fr":"","en":"Case convention: undiscounted contractual cash flows, interest included, are given. Vexin SA has a bond (carrying amount €2,000,000): ≤ 1 year €90,000, 1 to 5 years €1,280,000, > 5 years €1,030,000. Its trade payables (carrying amount €1,350,000) are fully due within the year. Calculate the total for the ≤ 1 year band, the total flows and the difference with the carrying amount.","es":""},"explanation":{"fr":"","en":"Band ≤ 1 year: €90,000 + €1,350,000 = €1,440,000. Total flows: €1,440,000 + €1,280,000 + €1,030,000 = €3,750,000. Difference: €3,750,000 − €3,350,000 = €400,000, that is the contractual interest on the bond (€2,400,000 − €2,000,000) (IFRS 7, para. 39).","es":""},"common_error":{"fr":"","en":"Presenting the carrying amount instead of undiscounted contractual flows.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Bond: flows ≤ 1 year","es":""},"value":"90000","unit":"EUR"},{"label":{"fr":"","en":"Bond: flows 1 to 5 years","es":""},"value":"1280000","unit":"EUR"},{"label":{"fr":"","en":"Bond: flows > 5 years","es":""},"value":"1030000","unit":"EUR"},{"label":{"fr":"","en":"Trade payables: flows ≤ 1 year","es":""},"value":"1350000","unit":"EUR"},{"label":{"fr":"","en":"Total carrying amount","es":""},"value":"3350000","unit":"EUR"}],"steps":[{"id":"a","label":{"fr":"","en":"Total of the ≤ 1 year band","es":""},"answer":1440000,"tolerance":0,"unit":"EUR"},{"id":"b","label":{"fr":"","en":"Total contractual flows","es":""},"answer":3750000,"tolerance":0,"unit":"EUR"},{"id":"c","label":{"fr":"","en":"Difference with the carrying amount","es":""},"answer":400000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a","meaning":{"fr":"","en":"Total of the ≤ 1 year band","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Bond: flows ≤ 1 year","es":""},"value":90000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Trade payables: flows ≤ 1 year","es":""},"value":1350000,"unit":"EUR"}],"result":1440000,"unit":"EUR"},{"step":"b","meaning":{"fr":"","en":"Total contractual flows","es":""},"expression":"a + b + c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Total of the ≤ 1 year band","es":""},"value":1440000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Bond: flows 1 to 5 years","es":""},"value":1280000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Bond: flows > 5 years","es":""},"value":1030000,"unit":"EUR"}],"result":3750000,"unit":"EUR"},{"step":"c","meaning":{"fr":"","en":"Difference with the carrying amount","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Total contractual flows","es":""},"value":3750000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Total carrying amount","es":""},"value":3350000,"unit":"EUR"}],"result":400000,"unit":"EUR"}],"rationale":{"fr":"","en":"Difference: €3,750,000 − €3,350,000 = €400,000, that is the contractual interest on the bond (€2,400,000 − €2,000,000) (IFRS 7, para. 39).","es":""},"references":["REF.IFRS7.39"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000051","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.LIQUIDITY_MARKET.MATURITY_ANALYSIS"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"TRANSPORT","tested_point":"MATURITY_ERROR_SPOT","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS7.000008","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000008","section_id":"rule-maturity"},"references":["IFRS 7 §39","IFRS 7 §B11D"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statement about the maturity analysis.","es":""},"explanation":{"fr":"","en":"Separate analysis for non-derivatives and derivatives and description of management (IFRS 7, para. 39), undiscounted contractual flows (IFRS 7, para. B11D), bands at the entity's judgement (IFRS 7).","es":""},"common_error":{"fr":"","en":"Presenting discounted flows or the carrying amount in the maturity analysis.","es":""},"format":"ERROR_SPOT","statements":[{"id":"s1","text":{"fr":"","en":"Non-derivative financial liabilities and derivatives have separate analyses.","es":""},"erroneous":false},{"id":"s2","text":{"fr":"","en":"The amounts in the analysis are the flows discounted at the effective interest rate.","es":""},"erroneous":true,"correction":{"fr":"","en":"The amounts are the undiscounted contractual cash flows (IFRS 7).","es":""}},{"id":"s3","text":{"fr":"","en":"The entity describes how it manages its liquidity risk.","es":""},"erroneous":false},{"id":"s4","text":{"fr":"","en":"The number of time bands is a matter of the entity's judgement.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000052","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.LIQUIDITY_MARKET.MATURITY_ANALYSIS"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"TRANSPORT","tested_point":"MATURITY_TABLE_PLACEMENT","difficulty":"INTERMEDIATE","estimated_time_s":110,"lesson_id":"LS.IFRS7.000008","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000008","section_id":"rule-maturity"},"references":["IFRS 7 §39"],"exercise":{"prompt":{"fr":"","en":"Place each liability item of an entity in the part of the liquidity note where it belongs.","es":""},"explanation":{"fr":"","en":"The maturity analysis separates non-derivative financial liabilities and derivatives (IFRS 7, para. 39). Practice reading: a non-contractual liability or an obligation to render a service is not a financial liability.","es":""},"common_error":{"fr":"","en":"Mixing derivatives and non-derivatives in a single analysis.","es":""},"format":"CLASSIFICATION","categories":[{"id":"nd","text":{"fr":"","en":"Non-derivative analysis","es":""}},{"id":"d","text":{"fr":"","en":"Derivative analysis","es":""}},{"id":"no","text":{"fr":"","en":"Outside the analysis: not a financial liability","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Currency forward contract recognised as a liability","es":""},"category":"d"},{"id":"i2","text":{"fr":"","en":"Interest rate swap recognised as a liability","es":""},"category":"d"},{"id":"i3","text":{"fr":"","en":"Income tax owed to the tax authority","es":""},"category":"no"},{"id":"i4","text":{"fr":"","en":"Fixed-rate bank borrowing","es":""},"category":"nd"},{"id":"i5","text":{"fr":"","en":"Deferred revenue corresponding to services still to be rendered","es":""},"category":"no"},{"id":"i6","text":{"fr":"","en":"Trade payables due in 60 days","es":""},"category":"nd"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000053","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.LIQUIDITY_MARKET.SUPPLIER_FINANCE_CONCENTRATION"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"FOOD","tested_point":"SUPPLIER_FINANCE_ANALYSIS","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS7.000008","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000008","section_id":"example-supplier"},"references":["IFRS 7 §B11F"],"exercise":{"prompt":{"fr":"","en":"An entity has €5,400,000 of trade payables, of which €4,100,000 are owed to a single bank under a supplier finance programme. Which conclusion is the most consistent?","es":""},"explanation":{"fr":"","en":"Using supplier finance and concentrating liabilities with a single provider are factors to consider in describing liquidity risk management (IFRS 7, para. B11F).","es":""},"common_error":{"fr":"","en":"Treating the arrangement as a plain trade payable with no liquidity effect.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No particular information: these are plain trade payables","es":""},"correct":false,"feedback":{"fr":"","en":"Liabilities concentrated with a finance provider are a concentration of funding sources to describe with liquidity risk management (IFRS 7, para. B11F).","es":""}},{"id":"B","text":{"fr":"","en":"The risk is a market risk, because the bank sets a rate","es":""},"correct":false,"feedback":{"fr":"","en":"The factor belongs to liquidity risk management, not to interest rate risk (IFRS 7, para. B11F).","es":""}},{"id":"C","text":{"fr":"","en":"A liquidity risk concentration to flag","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The liability must be reclassified to equity, the bank being a third party","es":""},"correct":false,"feedback":{"fr":"","en":"No rule reclassifies this liability to equity; the risk comes from the concentration (IFRS 7, para. B11F).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000054","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.LIQUIDITY_MARKET.SUPPLIER_FINANCE_CONCENTRATION"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"FOOD","tested_point":"SUPPLIER_FINANCE_DISPERSION_TF","difficulty":"INTERMEDIATE","estimated_time_s":45,"lesson_id":"LS.IFRS7.000008","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000008","section_id":"rule-supplier"},"references":["IFRS 7 §B11F"],"exercise":{"prompt":{"fr":"","en":"Liabilities spread among many independent suppliers create the same concentration risk as liabilities concentrated with a single finance provider.","es":""},"explanation":{"fr":"","en":"It is concentration with a single provider, rather than a diversified set of suppliers, that may create liquidity risk; the standard lists such concentrations among the factors to describe (IFRS 7, para. B11F).","es":""},"common_error":{"fr":"","en":"Treating the arrangement as a plain trade payable with no liquidity effect.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000055","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.LIQUIDITY_MARKET.MATURITY_ANALYSIS"],"dimension":"RECOGNITION","format":"MULTIPLE_CHOICE","context":"TRANSPORT","tested_point":"MATURITY_STATEMENTS_MULTI","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IFRS7.000008","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000008","section_id":"rule-maturity"},"references":["IFRS 7 §39","IFRS 7 §B11D"],"exercise":{"prompt":{"fr":"","en":"Which statements about the maturity analysis are correct? (several answers)","es":""},"explanation":{"fr":"","en":"Separate analysis for non-derivatives and derivatives and description of management (IFRS 7, para. 39), undiscounted contractual flows (IFRS 7, para. B11D), number of bands by judgement (IFRS 7).","es":""},"common_error":{"fr":"","en":"Teaching a time band as a rule.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It comes with a description of liquidity risk management","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"It requires five time bands","es":""},"correct":false,"feedback":{"fr":"","en":"The number of bands is a judgement: the standard imposes none (IFRS 7).","es":""}},{"id":"C","text":{"fr":"","en":"It is expressed in present value","es":""},"correct":false,"feedback":{"fr":"","en":"The flows are undiscounted (IFRS 7).","es":""}},{"id":"D","text":{"fr":"","en":"Contractual interest to be paid is included","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"It distinguishes non-derivative liabilities from derivatives","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000056","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.LIQUIDITY_MARKET.SENSITIVITY_ANALYSIS"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"SENSITIVITY_CONTENT","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IFRS7.000009","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000009","section_id":"rule-sensitivity"},"references":["IFRS 7 §40"],"exercise":{"prompt":{"fr":"","en":"What does the market risk sensitivity analysis show?","es":""},"explanation":{"fr":"","en":"The sensitivity analysis shows the effect on profit or loss and equity of reasonably possible changes in risk variables (IFRS 7).","es":""},"common_error":{"fr":"","en":"Confusing sensitivity with a worst case.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The effect on profit or loss and equity of a reasonably possible change in the risk variable","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The theoretical maximum loss if the market disappeared","es":""},"correct":false,"feedback":{"fr":"","en":"Sensitivity concerns a reasonably possible change, not an extreme scenario (IFRS 7).","es":""}},{"id":"C","text":{"fr":"","en":"The forecast of next year's interest rate","es":""},"correct":false,"feedback":{"fr":"","en":"The analysis predicts nothing: it measures the effect of a change on the exposure at the reporting date (IFRS 7).","es":""}},{"id":"D","text":{"fr":"","en":"The gap between the carrying amount and the fair value of the instruments at the reporting date","es":""},"correct":false,"feedback":{"fr":"","en":"This gap belongs to the fair value information, not to market sensitivity (IFRS 7).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000057","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.LIQUIDITY_MARKET.SENSITIVITY_ANALYSIS"],"dimension":"CALCULATION","format":"CALCULATION","context":"ENERGY","tested_point":"SENSITIVITY_PROFIT_AND_EQUITY","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IFRS7.000009","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000009","section_id":"numeric-sensitivity"},"references":["IFRS 7 §40"],"exercise":{"prompt":{"fr":"","en":"Dalmar SA has, at the reporting date, €6,500,000 of floating-rate debt and €1,800,000 of shares measured at fair value through OCI. Case convention: the reasonably possible changes are +0.75 percentage point for the rate and −12% for the share price; effects are before tax. Calculate the effect on profit or loss and the effect on equity.","es":""},"explanation":{"fr":"","en":"Profit or loss: €6,500,000 × 0.75% = €48,750 more expense. Equity: €1,800,000 × 12% = €216,000 less. The changes are case conventions, not rules of the standard (IFRS 7).","es":""},"common_error":{"fr":"","en":"Omitting the effect on equity.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Floating-rate debt","es":""},"value":"6500000","unit":"EUR"},{"label":{"fr":"","en":"Rate change (in points)","es":""},"value":"0.75","unit":"PERCENT"},{"label":{"fr":"","en":"FVOCI shares","es":""},"value":"1800000","unit":"EUR"},{"label":{"fr":"","en":"Share price change (in %)","es":""},"value":"12","unit":"PERCENT"}],"steps":[{"id":"a","label":{"fr":"","en":"Additional interest expense (effect on profit or loss)","es":""},"answer":48750,"tolerance":0,"unit":"EUR"},{"id":"b","label":{"fr":"","en":"Decrease in equity","es":""},"answer":216000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a","meaning":{"fr":"","en":"Additional interest expense (effect on profit or loss)","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Floating-rate debt","es":""},"value":6500000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Rate change (in points)","es":""},"value":0.75,"unit":"PERCENT"}],"result":48750,"unit":"EUR"},{"step":"b","meaning":{"fr":"","en":"Decrease in equity","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"FVOCI shares","es":""},"value":1800000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Share price change (in %)","es":""},"value":12,"unit":"PERCENT"}],"result":216000,"unit":"EUR"}],"rationale":{"fr":"","en":"The changes are case conventions, not rules of the standard (IFRS 7).","es":""},"references":["REF.IFRS7.40"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000058","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.LIQUIDITY_MARKET.SENSITIVITY_ANALYSIS"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"ENERGY","tested_point":"SENSITIVITY_ERROR_SPOT","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS7.000009","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000009","section_id":"rule-sensitivity"},"references":["IFRS 7 §40"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statement about the sensitivity analysis.","es":""},"explanation":{"fr":"","en":"The reasonably possible change is a judgement of the entity; the standard does not quantify it (IFRS 7).","es":""},"common_error":{"fr":"","en":"Teaching a rate change as a rule of the standard.","es":""},"format":"ERROR_SPOT","statements":[{"id":"s1","text":{"fr":"","en":"The analysis covers reasonably possible changes in significant risk variables.","es":""},"erroneous":false},{"id":"s2","text":{"fr":"","en":"The methods and assumptions used are stated.","es":""},"erroneous":false},{"id":"s3","text":{"fr":"","en":"The analysis uses a one-point rate change, set by the standard for all entities.","es":""},"erroneous":true,"correction":{"fr":"","en":"The standard does not quantify the change: it is reasonably possible according to the entity's judgement (IFRS 7).","es":""}},{"id":"s4","text":{"fr":"","en":"The effect is presented on profit or loss and on equity.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000059","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.LIQUIDITY_MARKET.SENSITIVITY_ANALYSIS"],"dimension":"APPLICATION","format":"MULTIPLE_CHOICE","context":"ENERGY","tested_point":"SENSITIVITY_CONTENT_MULTI","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IFRS7.000009","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000009","section_id":"rule-sensitivity"},"references":["IFRS 7 §40"],"exercise":{"prompt":{"fr":"","en":"What must the sensitivity analysis contain to be complete? (several answers)","es":""},"explanation":{"fr":"","en":"Effect on profit or loss and on equity, with methods and assumptions (IFRS 7).","es":""},"common_error":{"fr":"","en":"Omitting the effect on equity.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A forecast of next year's profit","es":""},"correct":false,"feedback":{"fr":"","en":"The analysis measures the effect on the exposure at the reporting date, not a forecast (IFRS 7).","es":""}},{"id":"B","text":{"fr":"","en":"A reference change set by the standard for each risk","es":""},"correct":false,"feedback":{"fr":"","en":"The standard sets no reference change; it is a matter of judgement (IFRS 7).","es":""}},{"id":"C","text":{"fr":"","en":"The effect on equity","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The effect on profit or loss","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"The methods and assumptions used","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000060","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.TRANSFERS.OBJECTIVE_AND_INVOLVEMENT"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"FINANCE","tested_point":"TRANSFER_OBJECTIVE_SINGLE","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS7.000010","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000010","section_id":"rule-objective"},"references":["IFRS 7 §42B"],"exercise":{"prompt":{"fr":"","en":"Which of these aims is one of the two objectives of the disclosures on transfers of financial assets?","es":""},"explanation":{"fr":"","en":"Understand the link between transferred assets not fully derecognised and associated liabilities, and assess the risks of continuing involvement (IFRS 7).","es":""},"common_error":{"fr":"","en":"Looking in IFRS 7 for derecognition rules.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Set the conditions in which a financial asset is derecognised by the transferring entity","es":""},"correct":false,"feedback":{"fr":"","en":"Derecognition belongs to IFRS 9; IFRS 7 has its consequences explained (IFRS 7).","es":""}},{"id":"B","text":{"fr":"","en":"Measure the expected credit loss on the transferred assets","es":""},"correct":false,"feedback":{"fr":"","en":"Measuring expected losses belongs to IFRS 9, not to these disclosures (IFRS 7).","es":""}},{"id":"C","text":{"fr":"","en":"Calculate the gain or loss on disposal of the transferred assets","es":""},"correct":false,"feedback":{"fr":"","en":"The gain or loss on disposal is a matter of recognition; these disclosures help users understand the asset-liability link and the risks (IFRS 7).","es":""}},{"id":"D","text":{"fr":"","en":"Assess the risks of continuing involvement","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000061","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.TRANSFERS.OBJECTIVE_AND_INVOLVEMENT"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"FINANCE","tested_point":"CONTINUING_INVOLVEMENT_SORT","difficulty":"INTERMEDIATE","estimated_time_s":110,"lesson_id":"LS.IFRS7.000010","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000010","section_id":"rule-involvement"},"references":["IFRS 7 §42C"],"exercise":{"prompt":{"fr":"","en":"An institution has sold loans. For each feature of the sale, is there continuing involvement?","es":""},"explanation":{"fr":"","en":"There is continuing involvement when the entity retains or obtains contractual rights or obligations relating to the transferred asset, except usual fraud representations and fair value contracts (IFRS 7, para. 42C).","es":""},"common_error":{"fr":"","en":"Excluding a repurchase option at a price other than fair value.","es":""},"format":"CLASSIFICATION","categories":[{"id":"yes","text":{"fr":"","en":"Continuing involvement","es":""}},{"id":"no","text":{"fr":"","en":"No continuing involvement (excluded item)","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"The institution guarantees payment of the first losses on the loans sold","es":""},"category":"yes"},{"id":"i2","text":{"fr":"","en":"The institution obtains the right to repurchase the loans at a price fixed at the sale","es":""},"category":"yes"},{"id":"i3","text":{"fr":"","en":"The institution agrees to repurchase the loans at their fair value on the repurchase date","es":""},"category":"no"},{"id":"i4","text":{"fr":"","en":"The institution keeps a subordinated tranche of the vehicle that bought the loans","es":""},"category":"yes"},{"id":"i5","text":{"fr":"","en":"The institution gives the usual representations that there is no fraud in the loans sold","es":""},"category":"no"},{"id":"i6","text":{"fr":"","en":"The institution obtains the right to receive part of the interest margin of the loans sold","es":""},"category":"yes"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000062","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.TRANSFERS.OBJECTIVE_AND_INVOLVEMENT"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"FINANCE","tested_point":"TRANSFER_OBJECTIVES_TF","difficulty":"INTERMEDIATE","estimated_time_s":45,"lesson_id":"LS.IFRS7.000010","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000010","section_id":"rule-objective"},"references":["IFRS 7 §42B"],"exercise":{"prompt":{"fr":"","en":"The disclosures on transfers of financial assets aim both to understand the link between transferred assets not derecognised in their entirety and the associated liabilities, and to assess the risks of the continuing involvement in derecognised assets.","es":""},"explanation":{"fr":"","en":"They pursue two objectives: the link between transferred assets and associated liabilities, and the risks of continuing involvement (IFRS 7).","es":""},"common_error":{"fr":"","en":"Retaining only one of the two objectives.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000063","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.TRANSFERS.NOT_DERECOGNISED"],"dimension":"CALCULATION","format":"CALCULATION","context":"FINANCE","tested_point":"NOT_DERECOGNISED_NET_POSITION","difficulty":"ADVANCED","estimated_time_s":210,"lesson_id":"LS.IFRS7.000010","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000010","section_id":"numeric-notderec"},"references":["IFRS 7 §42D"],"exercise":{"prompt":{"fr":"","en":"Cadrel SA made two transfers without derecognition. Transfer 1, recourse limited to the transferred assets: receivables with carrying amount €3,150,000 and fair value €3,090,000; associated liability with carrying amount €2,800,000 and fair value €2,760,000. Transfer 2, full recourse against the entity: receivables with carrying amount €1,200,000 and associated liability with carrying amount €1,150,000. Case convention: the net fair value position is calculated only for limited recourse. Calculate the total carrying amounts of the assets and of the associated liabilities, then the net position of transfer 1.","es":""},"explanation":{"fr":"","en":"Assets: €3,150,000 + €1,200,000 = €4,350,000. Associated liabilities: €2,800,000 + €1,150,000 = €3,950,000. Net position of transfer 1, the only limited-recourse one: €3,090,000 − €2,760,000 = €330,000. Transfer 2 (full recourse) is not in the net position (IFRS 7).","es":""},"common_error":{"fr":"","en":"Including in the net position a transfer whose recourse is not limited to the transferred assets.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Transfer 1: carrying amount of receivables","es":""},"value":"3150000","unit":"EUR"},{"label":{"fr":"","en":"Transfer 1: fair value of receivables","es":""},"value":"3090000","unit":"EUR"},{"label":{"fr":"","en":"Transfer 1: carrying amount of the associated liability","es":""},"value":"2800000","unit":"EUR"},{"label":{"fr":"","en":"Transfer 1: fair value of the associated liability","es":""},"value":"2760000","unit":"EUR"},{"label":{"fr":"","en":"Transfer 2: carrying amount of receivables","es":""},"value":"1200000","unit":"EUR"},{"label":{"fr":"","en":"Transfer 2: carrying amount of the associated liability","es":""},"value":"1150000","unit":"EUR"}],"steps":[{"id":"a","label":{"fr":"","en":"Total carrying amount of transferred assets","es":""},"answer":4350000,"tolerance":0,"unit":"EUR"},{"id":"b","label":{"fr":"","en":"Total carrying amount of associated liabilities","es":""},"answer":3950000,"tolerance":0,"unit":"EUR"},{"id":"c","label":{"fr":"","en":"Net position of transfer 1 (fair value)","es":""},"answer":330000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a","meaning":{"fr":"","en":"Total carrying amount of transferred assets","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Transfer 1: carrying amount of receivables","es":""},"value":3150000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Transfer 2: carrying amount of receivables","es":""},"value":1200000,"unit":"EUR"}],"result":4350000,"unit":"EUR"},{"step":"b","meaning":{"fr":"","en":"Total carrying amount of associated liabilities","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Transfer 1: carrying amount of the associated liability","es":""},"value":2800000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Transfer 2: carrying amount of the associated liability","es":""},"value":1150000,"unit":"EUR"}],"result":3950000,"unit":"EUR"},{"step":"c","meaning":{"fr":"","en":"Net position of transfer 1 (fair value)","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Transfer 1: fair value of receivables","es":""},"value":3090000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Transfer 1: fair value of the associated liability","es":""},"value":2760000,"unit":"EUR"}],"result":330000,"unit":"EUR"}],"rationale":{"fr":"","en":"Transfer 2 (full recourse) is not in the net position (IFRS 7).","es":""},"references":["REF.IFRS7.42D"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000064","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.TRANSFERS.NOT_DERECOGNISED"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"FINANCE","tested_point":"LIABILITY_WITHOUT_ASSET","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IFRS7.000010","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000010","section_id":"rule-notderec"},"references":["IFRS 7 §42D"],"exercise":{"prompt":{"fr":"","en":"A preparer shows the associated liability of €1,950,000 but omits the corresponding transferred receivables. What is the criticism?","es":""},"explanation":{"fr":"","en":"The note lets users understand the link between transferred assets not fully derecognised and associated liabilities (IFRS 7).","es":""},"common_error":{"fr":"","en":"Showing the associated liability without the corresponding transferred asset.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The link between the transferred asset and the associated liability disappears","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"No criticism: the associated liability is enough to inform the reader","es":""},"correct":false,"feedback":{"fr":"","en":"The note must let users understand the link between the transferred asset and the associated liability (IFRS 7).","es":""}},{"id":"C","text":{"fr":"","en":"The liability must be offset against the receivable in the statement of financial position","es":""},"correct":false,"feedback":{"fr":"","en":"Offsetting follows the IAS 32 criteria; the transfer note presents the asset and the associated liability together (IFRS 7).","es":""}},{"id":"D","text":{"fr":"","en":"The liability must be reclassified to equity","es":""},"correct":false,"feedback":{"fr":"","en":"Nothing reclassifies the associated liability to equity; it stays a liability linked to the asset (IFRS 7).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000065","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.TRANSFERS.DERECOGNISED_INVOLVEMENT"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"FINANCE","tested_point":"DERECOGNISED_INVOLVEMENT_ERROR_SPOT","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS7.000010","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000010","section_id":"rule-derec"},"references":["IFRS 7 §42E"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statement about continuing involvement in derecognised assets.","es":""},"explanation":{"fr":"","en":"The note quantifies carrying amount, fair value, maximum exposure to loss and repurchase cash outflows (IFRS 7).","es":""},"common_error":{"fr":"","en":"Confusing the carrying amount with the maximum exposure of the involvement.","es":""},"format":"ERROR_SPOT","statements":[{"id":"s1","text":{"fr":"","en":"The maximum exposure to loss always equals the carrying amount of the involvement.","es":""},"erroneous":true,"correction":{"fr":"","en":"Maximum exposure can be far higher: a guarantee capped at a high amount may have a low carrying amount (IFRS 7).","es":""}},{"id":"s2","text":{"fr":"","en":"The note quantifies the carrying amount and the fair value of the continuing involvement.","es":""},"erroneous":false},{"id":"s3","text":{"fr":"","en":"The note states the maximum exposure to loss because of the involvement.","es":""},"erroneous":false},{"id":"s4","text":{"fr":"","en":"The note states the undiscounted cash outflows to repurchase the assets.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000066","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.TRANSFERS.DERECOGNISED_INVOLVEMENT"],"dimension":"APPLICATION","format":"MULTIPLE_CHOICE","context":"FINANCE","tested_point":"DERECOGNISED_AMOUNTS_MULTI","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IFRS7.000010","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000010","section_id":"numeric-derec"},"references":["IFRS 7 §42E"],"exercise":{"prompt":{"fr":"","en":"Mirelle SA derecognised loans of €6,000,000. It keeps a first-loss guarantee capped at €450,000 (carrying amount €110,000, fair value €100,000) and a repurchase option for €4,900,000. Which amounts appear in the note on continuing involvement? (several answers)","es":""},"explanation":{"fr":"","en":"Carrying amount, fair value, maximum exposure to loss and repurchase cash outflows of the continuing involvement (IFRS 7). The €6,000,000 and €560,000 are not amounts requested.","es":""},"common_error":{"fr":"","en":"Confusing the value of derecognised assets with the amounts of the involvement kept.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"€6,000,000: value of the derecognised loans","es":""},"correct":false,"feedback":{"fr":"","en":"The value of the loans that left is not an amount of the continuing involvement itself (IFRS 7).","es":""}},{"id":"B","text":{"fr":"","en":"€100,000: fair value of the involvement","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"€560,000: capped guarantee plus carrying amount of the involvement","es":""},"correct":false,"feedback":{"fr":"","en":"Adding the cap and the carrying amount counts one risk twice: the maximum exposure is the cap (IFRS 7).","es":""}},{"id":"D","text":{"fr":"","en":"€4,900,000: cash outflow to repurchase the loans","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"€450,000: maximum exposure to loss","es":""},"correct":true},{"id":"F","text":{"fr":"","en":"€110,000: carrying amount of the involvement","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000067","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.TRANSFERS.OBJECTIVE_AND_INVOLVEMENT","IFRS7.TRANSFERS.NOT_DERECOGNISED","IFRS7.TRANSFERS.DERECOGNISED_INVOLVEMENT"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"FINANCE","tested_point":"TRANSFERS_MINI_CASE","difficulty":"ADVANCED","estimated_time_s":240,"lesson_id":"LS.IFRS7.000010","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000010","section_id":"judgment"},"references":["IFRS 7 §42B","IFRS 7 §42C","IFRS 7 §42D","IFRS 7 §42E"],"exercise":{"prompt":{"fr":"","en":"Place the two transfers of Hautel SA in the note on transfers.","es":""},"explanation":{"fr":"","en":"Transfer A falls under assets not fully derecognised; transfer B under continuing involvement in a derecognised asset (IFRS 7).","es":""},"common_error":{"fr":"","en":"Placing a derecognised transfer in the table of assets left on the balance sheet.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"*Case convention*: Hautel SA makes two transfers. Transfer A: receivables of €1,800,000 are handed to a factor for €1,700,000; Hautel keeps the default risks, derecognition is not achieved and the factor's recourse is limited to the receivables sold. Transfer B: loans of €3,000,000 are sold to a vehicle and derecognised; Hautel guarantees the first losses up to €300,000 (carrying amount of the guarantee €70,000).","es":""},"parts":[{"prompt":{"fr":"","en":"Which transfer falls under the information on transferred assets not fully derecognised and associated liabilities?","es":""},"explanation":{"fr":"","en":"Transferred assets not fully derecognised and associated liabilities on one side, continuing involvement in derecognised assets on the other (IFRS 7).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Transfer A, as the receivables stay on the balance sheet with a related liability","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Transfer B, because it includes a guarantee","es":""},"correct":false,"feedback":{"fr":"","en":"Transfer B is derecognised: it falls under continuing involvement, not under an associated liability (IFRS 7).","es":""}},{"id":"C","text":{"fr":"","en":"Both transfers, since there is a guarantee attached to the assets sold in both cases","es":""},"correct":false,"feedback":{"fr":"","en":"Only transfer A keeps the assets on the balance sheet with an associated liability (IFRS 7).","es":""}}],"id":"p1","dimension":"RECOGNITION"},{"prompt":{"fr":"","en":"For transfer B, which amount represents the maximum exposure to loss?","es":""},"explanation":{"fr":"","en":"Maximum exposure to loss can exceed the carrying amount; here it is the cap of the guarantee (IFRS 7).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"€70,000, the carrying amount of the guarantee","es":""},"correct":false,"feedback":{"fr":"","en":"The carrying amount is not the exposure: the maximum loss is the cap (IFRS 7).","es":""}},{"id":"B","text":{"fr":"","en":"€3,000,000, the value of the loans sold","es":""},"correct":false,"feedback":{"fr":"","en":"The loans have left; Hautel can lose at most what its guarantee covers (IFRS 7).","es":""}},{"id":"C","text":{"fr":"","en":"€300,000, the cap of the guarantee","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"€370,000, cap plus carrying amount","es":""},"correct":false,"feedback":{"fr":"","en":"The cap already covers the risk: adding the carrying amount would count it twice (IFRS 7).","es":""}}],"id":"p2","dimension":"APPLICATION"},{"prompt":{"fr":"","en":"For transfer A, the net fair value position is relevant because the factor's recourse is limited to the receivables sold.","es":""},"explanation":{"fr":"","en":"Where recourse is limited to the transferred assets, fair values come in addition to carrying amounts and the net position becomes readable (IFRS 7).","es":""},"common_error":{"fr":"","en":"Presenting the fair-value net position for every transfer: it is relevant only when recourse is limited to the transferred assets.","es":""},"format":"TRUE_FALSE","answer":true,"id":"p3","dimension":"ANALYSIS"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000068","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.INTERACTIONS.IAS32_IAS7"],"dimension":"RECOGNITION","format":"MATCHING","context":"FINANCE","tested_point":"IAS32_IAS7_ROLE_MATCH","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IFRS7.000011","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000011","section_id":"rule-ias32-ias7"},"references":["IFRS 7","IFRS 7 §B11F"],"exercise":{"prompt":{"fr":"","en":"Match each item to the standard that deals with it.","es":""},"explanation":{"fr":"","en":"IAS 32 sets the offsetting criteria, IFRS 7 has their effect measured; IAS 7 requires the information specific to supplier finance, IFRS 7 adds a liquidity risk management factor (IFRS 7, para. B11F).","es":""},"common_error":{"fr":"","en":"Applying the offsetting criteria in IFRS 7.","es":""},"format":"MATCHING","left":[{"id":"l1","text":{"fr":"","en":"Criteria for presenting an asset and a liability net","es":""}},{"id":"l2","text":{"fr":"","en":"Table measuring the effect of netting arrangements","es":""}},{"id":"l3","text":{"fr":"","en":"Information specific to a supplier finance arrangement","es":""}},{"id":"l4","text":{"fr":"","en":"Liquidity risk management factor linked to a single provider","es":""}}],"right":[{"id":"r4","text":{"fr":"","en":"Example given by IFRS 7 in the liquidity disclosures","es":""}},{"id":"r1","text":{"fr":"","en":"Criteria defined by IAS 32","es":""}},{"id":"r2","text":{"fr":"","en":"Offsetting disclosure required by IFRS 7","es":""}},{"id":"r3","text":{"fr":"","en":"Disclosures required by IAS 7","es":""}}],"pairs":[{"left":"l1","right":"r1"},{"left":"l2","right":"r2"},{"left":"l3","right":"r3"},{"left":"l4","right":"r4"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000069","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.INTERACTIONS.IAS32_IAS7"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"FINANCE","tested_point":"MASTER_AGREEMENT_NOT_OFFSET","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS7.000011","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000011","section_id":"rule-ias32-ias7"},"references":["IFRS 7"],"exercise":{"prompt":{"fr":"","en":"An arrangement does not meet the IAS 32 offsetting criteria, but it is an enforceable master netting arrangement. What happens to the derivative concerned?","es":""},"explanation":{"fr":"","en":"The net presentation criteria are in IAS 32; the IFRS 7 table also covers instruments under an enforceable master arrangement, offset or not (IFRS 7).","es":""},"common_error":{"fr":"","en":"Limiting the table to instruments actually offset.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is presented net in the statement of financial position as soon as a master arrangement exists","es":""},"correct":false,"feedback":{"fr":"","en":"Presenting a net requires meeting the IAS 32 criteria, which is not the case here.","es":""}},{"id":"B","text":{"fr":"","en":"Gross, included in the offsetting table","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It falls outside the offsetting disclosures","es":""},"correct":false,"feedback":{"fr":"","en":"An enforceable master arrangement brings the instrument into the table, offset or not (IFRS 7).","es":""}},{"id":"D","text":{"fr":"","en":"It is reclassified to equity","es":""},"correct":false,"feedback":{"fr":"","en":"Offsetting does not affect the liability or equity distinction (IAS 32).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000070","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.INTERACTIONS.AMENDMENTS"],"dimension":"RECOGNITION","format":"MATCHING","context":"GENERIC","tested_point":"AMENDMENT_DATES_MATCH","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS7.000011","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000011","section_id":"rule-amendments"},"references":["IFRS 7"],"exercise":{"prompt":{"fr":"","en":"Match each amendment to its effective date.","es":""},"explanation":{"fr":"","en":"Supplier finance, annual periods beginning on or after 1 January 2024; classification and measurement, 1 January 2026; early application permitted.","es":""},"common_error":{"fr":"","en":"Confusing issue date and effective date.","es":""},"format":"MATCHING","left":[{"id":"l1","text":{"fr":"","en":"Supplier finance arrangements (IAS 7 and IFRS 7, May 2023)","es":""}},{"id":"l2","text":{"fr":"","en":"Classification and measurement of financial instruments (IFRS 9 and IFRS 7, May 2024)","es":""}},{"id":"l3","text":{"fr":"","en":"Early application of the 2023 and 2024 amendments","es":""}}],"right":[{"id":"r1","text":{"fr":"","en":"Annual periods beginning on or after 1 January 2024","es":""}},{"id":"r3","text":{"fr":"","en":"Permitted in both cases","es":""}},{"id":"r2","text":{"fr":"","en":"Annual periods beginning on or after 1 January 2026","es":""}}],"pairs":[{"left":"l1","right":"r1"},{"left":"l2","right":"r2"},{"left":"l3","right":"r3"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000071","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.INTERACTIONS.AMENDMENTS"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"GENERIC","tested_point":"AMENDMENT_APPLICABILITY_ERROR_SPOT","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IFRS7.000011","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000011","section_id":"rule-amendments"},"references":["IFRS 7"],"exercise":{"prompt":{"fr":"","en":"An entity closes its accounts on 31 December; its year began on 1 January 2025 and it applies no amendment early. Spot the erroneous statement.","es":""},"explanation":{"fr":"","en":"Application is decided by the start date of the year against the effective date, not by the issue date; early application is permitted.","es":""},"common_error":{"fr":"","en":"Applying the 2024 amendments to a year starting before 1 January 2026 without early application.","es":""},"format":"ERROR_SPOT","statements":[{"id":"s1","text":{"fr":"","en":"The 2023 amendments on supplier finance apply to this year, which began after 1 January 2024.","es":""},"erroneous":false},{"id":"s2","text":{"fr":"","en":"The 2024 amendments are mandatory for this year, which began in 2025, because they were issued in 2024.","es":""},"erroneous":true,"correction":{"fr":"","en":"These amendments apply to annual periods beginning on or after 1 January 2026: the issue date does not decide application.","es":""}},{"id":"s3","text":{"fr":"","en":"The 2024 amendments on classification and measurement are not mandatory for this year without early application.","es":""},"erroneous":false},{"id":"s4","text":{"fr":"","en":"The entity could choose to apply the 2024 amendments early.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS7.000072","source":"V2","standard_id":"IFRS7","concept_ids":["IFRS7.INTERACTIONS.IFRS18"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"IFRS18_PRUDENT_STATEMENT","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IFRS7.000011","review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000011","section_id":"rule-ifrs18"},"references":["IFRS 7"],"exercise":{"prompt":{"fr":"","en":"Which statement about IFRS 18 and IFRS 7 is the most prudent?","es":""},"explanation":{"fr":"","en":"IFRS 18 amends other standards by consequence; those amendments are not presented as already applicable and their content is not invented.","es":""},"common_error":{"fr":"","en":"Presenting an IFRS 18 consequential amendment as already applicable.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The consequential amendments to IFRS 7 already apply to the current year, without waiting for the IFRS 18 date","es":""},"correct":false,"feedback":{"fr":"","en":"Presenting these amendments as already applicable is an error; they follow the IFRS 18 effective date, not that of IFRS 7.","es":""}},{"id":"B","text":{"fr":"","en":"IFRS 18 amends other standards by consequence, including IFRS 7; those amendments apply when the entity applies IFRS 18","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"IFRS 18 replaces IFRS 7 for risk disclosures","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 18 deals with the presentation of financial statements; it does not replace IFRS 7.","es":""}},{"id":"D","text":{"fr":"","en":"IFRS 18 removes the market risk sensitivity analysis","es":""},"correct":false,"feedback":{"fr":"","en":"Nothing establishes such a removal; inventing the content of the amendments would be an error.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS7.000001","standard_id":"IFRS7","concept_ids":["IFRS7.SCOPE.OBJECTIVE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS7.000001","tested_point":"QST.IFRS7.000001","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000001","section_id":"rule-objective"},"references":["IFRS 7 §1"],"exercise":{"prompt":{"fr":"","en":"IFRS 7 aims to enable users to assess the significance of financial instruments for the entity's financial position and performance, and the nature and extent of the risks arising from them and how the entity manages them.","es":""},"explanation":{"fr":"","en":"The objective of IFRS 7 is to require disclosures that enable users to assess the significance of financial instruments for the entity's financial position and performance, and the nature and extent of the risks arising from them and how the entity manages them (IFRS 7, para. 1); these principles complement those for recognising, measuring and presenting financial instruments (IFRS 7). Trap: Treating IFRS 7 as a standard on recognising or measuring financial instruments. Rule to remember: IFRS 7 organises the information on financial instruments and their risks (IFRS 7, para. 1).","es":""},"common_error":{"fr":"","en":"Treating IFRS 7 as a standard on recognising or measuring financial instruments.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IFRS7.000002","standard_id":"IFRS7","concept_ids":["IFRS7.SCOPE.OBJECTIVE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS7.000002","tested_point":"QST.IFRS7.000002","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000001","section_id":"rule-objective"},"references":["IFRS 7 §1"],"exercise":{"prompt":{"fr":"","en":"What is the objective of IFRS 7?","es":""},"explanation":{"fr":"","en":"The objective of IFRS 7 is to require disclosures that enable users to assess the significance of financial instruments for the entity's financial position and performance, and the nature and extent of the risks arising from them and how it manages them (IFRS 7, para. 1). The three other proposals describe subjects of other standards. Trap: Treating IFRS 7 as a standard on recognising or measuring financial instruments. Rule to remember: IFRS 7 = disclosures on financial instruments and their risks (IFRS 7, para. 1).","es":""},"common_error":{"fr":"","en":"Treating IFRS 7 as a standard on recognising or measuring financial instruments.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"To set the rules for recognising and measuring financial instruments, so that the entity chooses the measurement method applicable to each instrument it holds or issues.","es":""},"correct":false,"feedback":{"fr":"","en":"Recognition and measurement fall under other standards; IFRS 7 complements them with disclosures and does not choose the measurement method for each instrument (IFRS 7). Confusing the two means looking in IFRS 7 for what it does not establish.","es":""}},{"id":"B","text":{"fr":"","en":"To require disclosures that enable the assessment of the significance of financial instruments for financial position and performance, and of the nature and extent of their risks and how they are managed.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"To define the classification of issued financial instruments between liabilities and equity, based on the issuer's contractual obligations and the settlement terms of the contract.","es":""},"correct":false,"feedback":{"fr":"","en":"Classification between liabilities and equity is dealt with by IAS 32, not IFRS 7, which concerns the disclosures on this subject and on risks (IFRS 7, para. 1). The objective of IFRS 7 is not to classify issued instruments.","es":""}},{"id":"D","text":{"fr":"","en":"To require the entity to present its financial instruments at their net amount where a legal right of set-off exists at the end of the reporting period.","es":""},"correct":false,"feedback":{"fr":"","en":"Offsetting and the presentation of the net amount fall under IAS 32; IFRS 7 takes up only disclosures about them (IFRS 7, para. 1). Requiring net presentation does not describe the objective of IFRS 7.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS7.000003","standard_id":"IFRS7","concept_ids":["IFRS7.SCOPE.OBJECTIVE"],"dimension":"ANALYSIS","context":"V1_QST.IFRS7.000003","tested_point":"QST.IFRS7.000003","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000001","section_id":"rule-objective"},"references":["IFRS 7 §1"],"exercise":{"prompt":{"fr":"","en":"A colleague summarises the purpose of IFRS 7 for a newcomer. Which of the colleague's sentences is wrong?","es":""},"explanation":{"fr":"","en":"IFRS 7 requires disclosures that enable users to assess the significance of financial instruments for financial position and performance, and the nature and extent of risks and their management (IFRS 7, para. 1); these principles complement those for recognition, measurement and presentation (IFRS 7). The wrong sentence turns it into a recognition standard. Trap: Treating IFRS 7 as a standard on recognition or measurement. Rule to remember: IFRS 7 informs, it does not account (IFRS 7, para. 1).","es":""},"common_error":{"fr":"","en":"Treating IFRS 7 as a standard on recognising or measuring financial instruments.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"IFRS 7 complements the principles for recognising, measuring and presenting financial instruments with disclosures.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: the principles of IFRS 7 complement those for recognising, measuring and presenting financial instruments (IFRS 7). It is not the wrong sentence.","es":""}},{"id":"B","text":{"fr":"","en":"One part of the objective concerns the significance of financial instruments for the entity's financial position and performance.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: the first part of the objective concerns the significance of financial instruments for financial position and performance (IFRS 7, para. 1). It is not the wrong sentence.","es":""}},{"id":"C","text":{"fr":"","en":"The other part concerns the nature and extent of the risks arising from financial instruments, and how they are managed.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: the second part of the objective concerns the nature and extent of risks and how the entity manages them (IFRS 7, para. 1). It is not the wrong sentence.","es":""}},{"id":"D","text":{"fr":"","en":"IFRS 7 determines how to recognise and measure financial instruments, its disclosures being only an optional complement.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS7.000004","standard_id":"IFRS7","concept_ids":["IFRS7.SCOPE.CLASSES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS7.000004","tested_point":"QST.IFRS7.000004","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000001","section_id":"rule-classes"},"references":["IFRS 7 §6"],"exercise":{"prompt":{"fr":"","en":"The classes of financial instruments used for the disclosures are identical to the IFRS 9 measurement categories.","es":""},"explanation":{"fr":"","en":"Where the standard requires disclosures by class, the entity groups instruments according to the nature of the information and their characteristics, and provides enough information to reconcile the classes to the line items of the statement of financial position; classes differ from measurement categories (IFRS 7, para. 6). Trap: Confusing a class of instruments with an IFRS 9 measurement category. Rule to remember: A class is not a measurement category (IFRS 7, para. 6).","es":""},"common_error":{"fr":"","en":"Confusing a class of instruments with an IFRS 9 measurement category.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS7.000005","standard_id":"IFRS7","concept_ids":["IFRS7.SCOPE.CLASSES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS7.000005","tested_point":"QST.IFRS7.000005","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000001","section_id":"rule-classes"},"references":["IFRS 7 §6"],"exercise":{"prompt":{"fr":"","en":"Where the standard requires disclosures by class, the entity provides enough information for the classes to be reconciled to the line items of the statement of financial position.","es":""},"explanation":{"fr":"","en":"Where the standard requires disclosures by category or by class, the entity groups instruments into classes according to the nature of the information and the characteristics of the instruments, and provides enough information to reconcile the classes to the line items of the statement of financial position (IFRS 7, para. 6). Trap: Grouping instruments without allowing the classes to be reconciled to the line items of the statement of financial position. Rule to remember: Each class must be reconcilable to the line items of the statement of financial position (IFRS 7, para. 6).","es":""},"common_error":{"fr":"","en":"Grouping instruments into classes without allowing the classes to be reconciled to the line items of the statement of financial position.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IFRS7.000006","standard_id":"IFRS7","concept_ids":["IFRS7.SCOPE.CLASSES"],"dimension":"APPLICATION","context":"V1_QST.IFRS7.000006","tested_point":"QST.IFRS7.000006","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000001","section_id":"rule-classes"},"references":["IFRS 7 §6"],"exercise":{"prompt":{"fr":"","en":"Sora SA holds retail loans, corporate loans, listed bonds and derivatives (case facts). It prepares the disclosures by class. Which approach is consistent with the rule on grouping into classes?","es":""},"explanation":{"fr":"","en":"Classes are set according to the nature of the information to be disclosed and the characteristics of the instruments, with enough information to reconcile each class to the line items of the statement of financial position; they differ from measurement categories (IFRS 7, para. 6). Professional judgement: the level of detail suited to Sora's loans, bonds and derivatives is for the entity to assess. Trap: Confusing a class of instruments with a measurement category. Rule to remember: Classes = nature of the information and characteristics, reconcilable to line items (IFRS 7, para. 6).","es":""},"common_error":{"fr":"","en":"Confusing a class of instruments with a measurement category, or grouping without being able to reconcile the line items.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Group the instruments according to the nature of the information and their characteristics, providing enough detail to reconcile each class to the line items of the statement of financial position.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Take the measurement categories as they are, without asking whether they suit the nature of the information disclosed or whether they can be reconciled to the line items of the statement of financial position.","es":""},"correct":false,"feedback":{"fr":"","en":"Measurement categories are not classes: classes are defined according to the nature of the information and the characteristics of the instruments, and must be reconcilable to the line items (IFRS 7, para. 6). Taking them over without review ignores this rule.","es":""}},{"id":"C","text":{"fr":"","en":"Group all the instruments into a single class, which avoids having to reconcile the information to the various line items of Sora's statement of financial position.","es":""},"correct":false,"feedback":{"fr":"","en":"A single class would remove the expected reconciliation: the rule requires enough information to link the classes to the line items of the statement of financial position, which an overall grouping does not allow (IFRS 7, para. 6).","es":""}},{"id":"D","text":{"fr":"","en":"Create one class per counterparty, whatever the line item of the statement of financial position in which each instrument appears, in order to track each customer's risk.","es":""},"correct":false,"feedback":{"fr":"","en":"Grouping by counterparty follows neither the nature of the information nor the characteristics of the instruments, and cannot be reconciled to the line items of the statement of financial position. It does not meet the rule on grouping into classes (IFRS 7, para. 6).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS7.000007","standard_id":"IFRS7","concept_ids":["IFRS7.POSITION_PERFORMANCE.CATEGORIES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS7.000007","tested_point":"QST.IFRS7.000007","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000002","section_id":"rule-categories"},"references":["IFRS 7 §8"],"exercise":{"prompt":{"fr":"","en":"The entity provides, in the statement of financial position or in the notes, the carrying amount of each category of financial assets and financial liabilities.","es":""},"explanation":{"fr":"","en":"The entity provides, in the statement of financial position or in the notes, the carrying amount of each category of financial assets and financial liabilities (IFRS 7, para. 8). Trap: Using the IAS 39 categories for a period subject to IFRS 9. Rule to remember: One carrying amount per category, in the statement of financial position or in the notes (IFRS 7, para. 8).","es":""},"common_error":{"fr":"","en":"Using the IAS 39 categories for a period subject to IFRS 9.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IFRS7.000008","standard_id":"IFRS7","concept_ids":["IFRS7.POSITION_PERFORMANCE.CATEGORIES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS7.000008","tested_point":"QST.IFRS7.000008","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000002","section_id":"rule-categories"},"references":["IFRS 7 §8"],"exercise":{"prompt":{"fr":"","en":"What must the entity provide for each category of financial assets and financial liabilities?","es":""},"explanation":{"fr":"","en":"For each category of financial assets and financial liabilities, the entity provides the carrying amount, in the statement of financial position or in the notes (IFRS 7, para. 8). The other proposals refer to separate disclosures (fair value, income and expenses, credit risk). Trap: Using the IAS 39 categories for a period subject to IFRS 9. Rule to remember: Per category: the carrying amount (IFRS 7, para. 8).","es":""},"common_error":{"fr":"","en":"Confusing the carrying amount by category with other disclosures (fair value, profit or loss, credit risk).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The fair value of each category, in the statement of comprehensive income, when it differs from the carrying amount.","es":""},"correct":false,"feedback":{"fr":"","en":"Fair value is the subject of other disclosures, and it is not presented in the statement of comprehensive income. For each category, what is required is the carrying amount, in the statement of financial position or in the notes (IFRS 7, para. 8).","es":""}},{"id":"B","text":{"fr":"","en":"The amount of income and expenses of each category, to the exclusion of any carrying amount from the statement of financial position.","es":""},"correct":false,"feedback":{"fr":"","en":"Income and expenses are the subject of separate disclosures; they do not replace the carrying amount of each category, which is provided in the statement of financial position or in the notes (IFRS 7, para. 8).","es":""}},{"id":"C","text":{"fr":"","en":"The carrying amount of each category, in the statement of financial position or in the notes.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The list of counterparties of each category, with their credit rating at the end of the reporting period.","es":""},"correct":false,"feedback":{"fr":"","en":"The list of counterparties and their rating fall under the credit risk disclosures, not the carrying amount by category. For each category, the carrying amount is provided in the statement of financial position or in the notes (IFRS 7, para. 8).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS7.000009","standard_id":"IFRS7","concept_ids":["IFRS7.POSITION_PERFORMANCE.CATEGORIES"],"dimension":"ANALYSIS","context":"V1_QST.IFRS7.000009","tested_point":"QST.IFRS7.000009","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000002","section_id":"rule-categories"},"references":["IFRS 7 §8"],"exercise":{"prompt":{"fr":"","en":"A colleague prepares the table of carrying amounts by category for a period subject to IFRS 9. Which of the colleague's sentences is wrong?","es":""},"explanation":{"fr":"","en":"The carrying amount of each category of financial assets and liabilities is provided in the statement of financial position or in the notes; the categories cited by older sources (IAS 39) have been replaced by those of IFRS 9 (IFRS 7, para. 8). The wrong sentence applies the IAS 39 categories to an IFRS 9 period. Trap: Using the IAS 39 categories (held to maturity, available for sale) for a period subject to IFRS 9. Rule to remember: For an IFRS 9 period, the table follows the IFRS 9 categories (IFRS 7, para. 8).","es":""},"common_error":{"fr":"","en":"Using the IAS 39 categories (held to maturity, available for sale) for a period subject to IFRS 9.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The carrying amount of each category is provided in the statement of financial position or in the notes.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: the carrying amount of each category is provided in the statement of financial position or in the notes (IFRS 7, para. 8). It is not the wrong sentence.","es":""}},{"id":"B","text":{"fr":"","en":"The IAS 39 categories cited by older sources have been replaced by those of IFRS 9.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: the IAS 39 categories cited by older sources have been replaced by those of IFRS 9 (IFRS 7, para. 8). It is not the wrong sentence.","es":""}},{"id":"C","text":{"fr":"","en":"The table may use the \"held to maturity\" and \"available for sale\" categories.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"To complete the table, the entity starts by identifying the measurement category of each instrument.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: to assign a carrying amount to each category, the entity must first know in which category each instrument sits (IFRS 7, para. 8). It is not the wrong sentence.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS7.000010","standard_id":"IFRS7","concept_ids":["IFRS7.POSITION_PERFORMANCE.OFFSETTING_DISCLOSURES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS7.000010","tested_point":"QST.IFRS7.000010","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000003","section_id":"rule-scope"},"references":["IFRS 7 §13A"],"exercise":{"prompt":{"fr":"","en":"Which instruments fall within the scope of the IFRS 7 offsetting disclosures? Several answers are possible.","es":""},"explanation":{"fr":"","en":"The offsetting disclosures apply to all recognised financial instruments that are offset in accordance with IAS 32, and to those subject to an enforceable master netting arrangement or similar agreement, whether or not they are offset (IFRS 7, para. 13A). Trap: Limiting the table to instruments actually offset. Rule to remember: The scope covers offset instruments and those under an enforceable master arrangement, offset or not (IFRS 7, para. 13A).","es":""},"common_error":{"fr":"","en":"Limiting the table to instruments actually offset.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Recognised financial instruments that are offset in accordance with IAS 32 in the statement of financial position.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Instruments actually offset in the statement of financial position, to the exclusion of those covered by a master netting arrangement without being offset.","es":""},"correct":false,"feedback":{"fr":"","en":"The scope is not limited to instruments actually offset: instruments subject to an enforceable master netting arrangement are also in the table, offset or not (IFRS 7, para. 13A). Excluding them wrongly limits the table.","es":""}},{"id":"C","text":{"fr":"","en":"Instruments subject to an enforceable master netting arrangement or similar agreement, whether or not they are offset.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Contracts on non-financial items covered by a master netting arrangement, such as contracts for the delivery of goods.","es":""},"correct":false,"feedback":{"fr":"","en":"The offsetting disclosures concern financial instruments; contracts for the delivery of goods are not, as such, recognised financial instruments that are offset or subject to a master netting arrangement within the meaning of this paragraph (IFRS 7, para. 13A).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS7.000011","standard_id":"IFRS7","concept_ids":["IFRS7.POSITION_PERFORMANCE.OFFSETTING_DISCLOSURES"],"dimension":"CALCULATION","context":"V1_QST.IFRS7.000011","tested_point":"QST.IFRS7.000011","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000003","section_id":"rule-scope"},"references":["IFRS 7 §13C"],"exercise":{"prompt":{"fr":"","en":"Orion SA prepares the offsetting table for its derivative assets. Counterparty A: gross amount {gross_a}, of which {set_off_a} is offset in accordance with IAS 32; related financial instruments not offset {related_fi_a}; cash collateral received {cash_collateral_a}. Counterparty B: net amount presented {net_presented_b}; related financial instruments {related_fi_b}; cash collateral received {cash_collateral_b}. Table rule (case data): the amount deducted for an instrument does not exceed its net amount. Calculate the net amount presented for A, then the final net amount of A and that of B.","es":""},"explanation":{"fr":"","en":"Method. A: 900,000 − 250,000 = 650,000 presented; net amount = 650,000 − 180,000 − 150,000 = 320,000. B: 300,000 − 120,000 = 180,000 remain exposed after the related instruments; the cash collateral received of 400,000 exceeds this amount, so the deduction is capped at 180,000 and the net amount is 0, not −220,000. The table presents, by asset, separately, the gross, offset and net amounts presented, then the amounts not offset (financial instruments and financial collateral, here cash) and the net amount, with the amount deducted for an instrument not exceeding its net amount (IFRS 7, para. 13C). Trap: Deducting cash collateral greater than the net amount of the instrument and obtaining a negative net amount. Rule to remember: The amount deducted for an instrument is capped at its net amount (IFRS 7, para. 13C).","es":""},"common_error":{"fr":"","en":"Deducting cash collateral greater than the net amount of the instrument and obtaining a negative net amount.","es":""},"format":"CALCULATION","placeholders":[{"id":"gross_a","value":"900000","unit":"EUR"},{"id":"set_off_a","value":"250000","unit":"EUR"},{"id":"related_fi_a","value":"180000","unit":"EUR"},{"id":"cash_collateral_a","value":"150000","unit":"EUR"},{"id":"net_presented_b","value":"300000","unit":"EUR"},{"id":"related_fi_b","value":"120000","unit":"EUR"},{"id":"cash_collateral_b","value":"400000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Gross amount of A","es":""},"value":"900000","unit":"EUR"},{"label":{"fr":"","en":"Amount offset for A","es":""},"value":"250000","unit":"EUR"},{"label":{"fr":"","en":"Related financial instruments of A","es":""},"value":"180000","unit":"EUR"},{"label":{"fr":"","en":"Cash collateral received from A","es":""},"value":"150000","unit":"EUR"},{"label":{"fr":"","en":"Net amount presented for B","es":""},"value":"300000","unit":"EUR"},{"label":{"fr":"","en":"Related financial instruments of B","es":""},"value":"120000","unit":"EUR"},{"label":{"fr":"","en":"Cash collateral received from B","es":""},"value":"400000","unit":"EUR"}],"steps":[{"id":"NET_PRESENTED_A","label":{"fr":"","en":"Net amount presented for A","es":""},"answer":650000,"tolerance":0,"unit":"EUR"},{"id":"NET_AMOUNT_A","label":{"fr":"","en":"Final net amount of A","es":""},"answer":320000,"tolerance":0,"unit":"EUR"},{"id":"NET_AMOUNT_B","label":{"fr":"","en":"Final net amount of B","es":""},"answer":0,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"NET_PRESENTED_A","meaning":{"fr":"","en":"Net amount presented for A","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Gross amount of A","es":""},"value":900000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Amount offset for A","es":""},"value":250000,"unit":"EUR"}],"result":650000,"unit":"EUR"},{"step":"NET_AMOUNT_A","meaning":{"fr":"","en":"Final net amount of A","es":""},"expression":"a - b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Net amount presented for A","es":""},"value":650000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Related financial instruments of A","es":""},"value":180000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Cash collateral received from A","es":""},"value":150000,"unit":"EUR"}],"result":320000,"unit":"EUR"}],"rationale":{"fr":"","en":"The amount deducted for an instrument is capped at its net amount (IFRS 7, para. 13C).","es":""},"references":["REF.IFRS7.13C"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS7.000012","standard_id":"IFRS7","concept_ids":["IFRS7.POSITION_PERFORMANCE.INCOME_EXPENSE"],"dimension":"APPLICATION","context":"V1_QST.IFRS7.000012","tested_point":"QST.IFRS7.000012","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000002","section_id":"rule-income"},"references":["IFRS 7 §20"],"exercise":{"prompt":{"fr":"","en":"Lyra SA recognised over the year, for its loans measured at amortised cost: interest income under the effective interest method of 420,000, which already includes 30,000 of loan origination fees; and 55,000 of account maintenance fees, outside the effective interest rate (case facts). What amount of fee income does Lyra present separately, in addition to total interest income?","es":""},"explanation":{"fr":"","en":"The entity provides total interest income and expense (effective interest method) for instruments not measured at fair value through profit or loss, and fee income and expense other than amounts included in the effective interest rate (IFRS 7, para. 20). Case facts: the 30,000 of origination fees are already in the 420,000; only the 55,000 of account maintenance are fees to be presented separately. Trap: Including in fees those already included in the effective interest rate. Rule to remember: Fees presented separately = those not in the effective interest rate (IFRS 7, para. 20).","es":""},"common_error":{"fr":"","en":"Including in fees those already included in the effective interest rate.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"55,000, being the fees other than those included in the effective interest rate.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"85,000, being the account maintenance fees and the origination fees, since both are fees.","es":""},"correct":false,"feedback":{"fr":"","en":"The 30,000 of origination fees are already included in the effective interest rate, hence in the 420,000 of interest income. Adding them to the fees would count them twice: the separate presentation concerns fees other than those included in that rate (IFRS 7, para. 20).","es":""}},{"id":"C","text":{"fr":"","en":"30,000, being the loan origination fees, which are linked to the loans measured at amortised cost.","es":""},"correct":false,"feedback":{"fr":"","en":"Origination fees are included in the effective interest rate and therefore appear in interest income. The separate presentation of fees concerns those not included in that rate, here the 55,000 of account maintenance (IFRS 7, para. 20).","es":""}},{"id":"D","text":{"fr":"","en":"475,000, being the total of interest and account maintenance fees, presented on a single income line.","es":""},"correct":false,"feedback":{"fr":"","en":"The rule asks for the total interest income and the fee income outside the effective interest rate to be provided separately. Merging them into a single amount of 475,000 does not meet this separate presentation (IFRS 7, para. 20).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS7.000013","standard_id":"IFRS7","concept_ids":["IFRS7.POSITION_PERFORMANCE.INCOME_EXPENSE"],"dimension":"ANALYSIS","context":"V1_QST.IFRS7.000013","tested_point":"QST.IFRS7.000013","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000002","section_id":"rule-income"},"references":["IFRS 7 §20"],"exercise":{"prompt":{"fr":"","en":"A working file for the notes describes the disclosures on income, expense, gains and losses on financial instruments. Which of its sentences is wrong?","es":""},"explanation":{"fr":"","en":"The entity provides net gains and losses by category of instruments, total interest income and expense (effective interest method) for instruments not measured at fair value through profit or loss, and fee income and expense other than amounts included in the effective interest rate (IFRS 7, para. 20). The wrong sentence extends the interest total to instruments at fair value through profit or loss. Trap: Including in the interest total the instruments measured at fair value through profit or loss. Rule to remember: The interest total concerns instruments not measured at fair value through profit or loss (IFRS 7, para. 20).","es":""},"common_error":{"fr":"","en":"Including in total interest income that of instruments measured at fair value through profit or loss.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The entity provides net gains and losses by category of financial instruments.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: the entity provides net gains and losses by category of instruments, using the IFRS 9 categories (IFRS 7, para. 20). It is not the wrong sentence.","es":""}},{"id":"B","text":{"fr":"","en":"Total interest income and expense, calculated under the effective interest method, concerns instruments not measured at fair value through profit or loss.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: total interest income and expense (effective interest method) concerns instruments not measured at fair value through profit or loss (IFRS 7, para. 20). It is not the wrong sentence.","es":""}},{"id":"C","text":{"fr":"","en":"Fee income and expense that is not included in the effective interest rate is provided separately.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: fees other than those included in the effective interest rate are provided separately (IFRS 7, para. 20). It is not the wrong sentence.","es":""}},{"id":"D","text":{"fr":"","en":"Total interest income also includes that of instruments at fair value through profit or loss.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS7.000014","standard_id":"IFRS7","concept_ids":["IFRS7.POSITION_PERFORMANCE.RECLASSIFICATION"],"dimension":"APPLICATION","context":"V1_QST.IFRS7.000014","tested_point":"QST.IFRS7.000014","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000002","section_id":"rule-reclass"},"references":["IFRS 7 §12B"],"exercise":{"prompt":{"fr":"","en":"Pelta SA reclassifies a portfolio of loans from one measurement category to another (case facts). Management asks where to find, on the one hand, the measurement rules for the reclassified asset and, on the other, the disclosures about the reclassification. Which answer is consistent with the split between IFRS 9 and IFRS 7?","es":""},"explanation":{"fr":"","en":"The reclassification of financial assets gives rise to specific disclosures in IFRS 7; the measurement of reclassification falls under IFRS 9 (IFRS 7, para. 12B). Pelta therefore looks for the measurement rules in IFRS 9 and for the disclosures in IFRS 7. Trap: Looking in IFRS 7 for the measurement rules for reclassification. Rule to remember: IFRS 9 measures the reclassification, IFRS 7 requires the information (IFRS 7, para. 12B).","es":""},"common_error":{"fr":"","en":"Looking in IFRS 7 for the measurement rules for reclassification.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"IFRS 7 also contains the measurement rules for the reclassified asset, since reclassification is a transaction covered by its disclosures.","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 7 is a disclosure standard: it provides for disclosures on reclassification but does not contain the measurement rules for the reclassified asset, which fall under IFRS 9 (IFRS 7, para. 12B).","es":""}},{"id":"B","text":{"fr":"","en":"The measurement of the reclassified asset falls under IFRS 9; IFRS 7 requires specific disclosures on the reclassification of financial assets.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"IFRS 9 contains the measurement rules and the disclosures on reclassification, IFRS 7 being limited to credit risk disclosures.","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 7 is not limited to credit risk: it also provides for specific disclosures when financial assets are reclassified, whereas measurement falls under IFRS 9 (IFRS 7, para. 12B).","es":""}},{"id":"D","text":{"fr":"","en":"Neither IFRS 9 nor IFRS 7 deals with the reclassification of financial assets, which is for the entity's freely defined accounting policy.","es":""},"correct":false,"feedback":{"fr":"","en":"The reclassification of financial assets is dealt with: measurement by IFRS 9 and disclosures by IFRS 7. It is not for a policy freely defined by the entity (IFRS 7, para. 12B).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS7.000015","standard_id":"IFRS7","concept_ids":["IFRS7.HEDGING.HEDGE_OVERVIEW"],"dimension":"APPLICATION","context":"V1_QST.IFRS7.000015","tested_point":"QST.IFRS7.000015","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000004","section_id":"rule-hedge"},"references":["IFRS 7 §21A"],"exercise":{"prompt":{"fr":"","en":"Dorade SA hedges its dollar exposure economically through a forward contract, but does not apply hedge accounting to this relationship (case facts). Are the IFRS 7 disclosures specific to hedge accounting required for this exposure?","es":""},"explanation":{"fr":"","en":"The hedge accounting disclosures apply to risk exposures that the entity hedges and for which it applies hedge accounting (IFRS 7, para. 21A). Case facts: economic hedge, with no hedge accounting; these specific disclosures are therefore not required, the general disclosures on instruments and risks remaining applicable. Trap: Providing the hedging disclosures for an economically hedged exposure without applying hedge accounting. Rule to remember: Applying hedge accounting triggers its specific disclosures (IFRS 7, para. 21A).","es":""},"common_error":{"fr":"","en":"Providing the hedging disclosures for an economically hedged exposure without applying hedge accounting.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Yes: any economically hedged exposure must be covered by these disclosures, whether or not hedge accounting is applied, including where the entity does not document a hedging relationship.","es":""},"correct":false,"feedback":{"fr":"","en":"The criterion is not economic hedging but the application of hedge accounting to the exposure: without it, the disclosures specific to hedge accounting are not required (IFRS 7, para. 21A).","es":""}},{"id":"B","text":{"fr":"","en":"Yes: the forward contract is a derivative, and any derivative held for hedging purposes triggers these specific hedging disclosures.","es":""},"correct":false,"feedback":{"fr":"","en":"Holding a derivative for hedging purposes is not enough to trigger these disclosures: hedge accounting must be applied to the exposure concerned (IFRS 7, para. 21A). That is not the case of Dorade's forward contract.","es":""}},{"id":"C","text":{"fr":"","en":"No: the entity is exempt from any disclosure about the forward contract, including the general disclosures on instruments and on risks.","es":""},"correct":false,"feedback":{"fr":"","en":"The forward contract remains a financial instrument: the general disclosures on financial instruments and on their risks remain applicable; only the hedge accounting section does not (IFRS 7, para. 21A).","es":""}},{"id":"D","text":{"fr":"","en":"No: these disclosures apply to risk exposures that the entity hedges and for which it applies hedge accounting, which is not the case here.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS7.000016","standard_id":"IFRS7","concept_ids":["IFRS7.FAIR_VALUE.FAIR_VALUE_DISCLOSURES"],"dimension":"APPLICATION","context":"V1_QST.IFRS7.000016","tested_point":"QST.IFRS7.000016","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000004","section_id":"rule-fv"},"references":["IFRS 7 §28"],"exercise":{"prompt":{"fr":"","en":"Tigre SA acquires a financial instrument for a transaction price of 1,000. Its fair value at inception, estimated using unobservable inputs, is 940 (case facts). What does IFRS 7 provide about this difference of 60?","es":""},"explanation":{"fr":"","en":"Where the fair value at inception differs from the transaction price and the measurement relies on unobservable inputs, disclosures are to be provided on that difference (IFRS 7, para. 28). Case facts: price 1,000, fair value 940, unobservable inputs. Trap: Looking in IFRS 7 for the rule on recognising the difference, or thinking the disclosure unnecessary. Rule to remember: Difference between fair value at inception and transaction price with unobservable inputs: a disclosure is required (IFRS 7, para. 28).","es":""},"common_error":{"fr":"","en":"Believing that no disclosure is required on the difference between fair value at inception and the transaction price.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"IFRS 7 requires the difference to be recognised immediately in profit or loss; no disclosure is asked for on this matter, which makes any further explanation in the notes unnecessary.","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 7 is a disclosure standard: here it asks for information on the difference, not immediate recognition in profit or loss. The accounting treatment of the difference falls under other standards (IFRS 7, para. 28).","es":""}},{"id":"B","text":{"fr":"","en":"Disclosures must be provided on the difference between the fair value at inception and the transaction price, where the measurement relies on unobservable inputs.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Nothing has to be provided as long as the instrument is classified in the most reliable level of the fair value hierarchy, whatever the difference.","es":""},"correct":false,"feedback":{"fr":"","en":"A measurement relying on unobservable inputs is precisely the case targeted: the difference between fair value at inception and the transaction price gives rise to disclosures (IFRS 7, para. 28). It is not an exempt case.","es":""}},{"id":"D","text":{"fr":"","en":"The disclosure concerns the fair value of all the entity's instruments, with no link to the difference found at inception for this instrument.","es":""},"correct":false,"feedback":{"fr":"","en":"Paragraph 28 targets the difference between fair value at inception and the transaction price for an instrument whose measurement relies on unobservable inputs. It does not generalise the disclosure to all the entity's instruments (IFRS 7, para. 28).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS7.000017","standard_id":"IFRS7","concept_ids":["IFRS7.FAIR_VALUE.FAIR_VALUE_DISCLOSURES"],"dimension":"ANALYSIS","context":"V1_QST.IFRS7.000017","tested_point":"QST.IFRS7.000017","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000004","section_id":"rule-fv"},"references":["IFRS 7 §29"],"exercise":{"prompt":{"fr":"","en":"Kelp SA, which has no lease liabilities (case fact), omits the disclosure of an instrument's fair value only if its carrying amount is a reasonable approximation of it (IFRS 7, para. 29). A working file applies this rule to Kelp's instruments. Which of its conclusions is wrong?","es":""},"explanation":{"fr":"","en":"Fair value is omitted only if the carrying amount is a reasonable approximation of it, which is assessed instrument by instrument through professional judgement (IFRS 7, para. 29). The ten-year fixed-rate loan does not pass the test automatically. Trap: Omitting the fair value of a long-term instrument because the carrying amount is an amortised cost. Rule to remember: Omitting fair value requires justifying the approximation, instrument by instrument (IFRS 7).","es":""},"common_error":{"fr":"","en":"Omitting the fair value of a long-term instrument because the carrying amount is an amortised cost.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"For a trade receivable due in twenty days, management may conclude, by professional judgement, that the carrying amount reasonably approximates fair value.","es":""},"correct":false,"feedback":{"fr":"","en":"This conclusion is consistent with the rule: for a short-term receivable, management may judge, by professional judgement, that the carrying amount approximates fair value (IFRS 7). It is not wrong.","es":""}},{"id":"B","text":{"fr":"","en":"Before omitting the fair value of an instrument, management assesses whether the carrying amount of that instrument is a reasonable approximation of it.","es":""},"correct":false,"feedback":{"fr":"","en":"This conclusion restates the rule: before omitting fair value, management assesses whether the carrying amount is a reasonable approximation of it (IFRS 7). It is not the wrong conclusion.","es":""}},{"id":"C","text":{"fr":"","en":"A ten-year fixed-rate loan measured at amortised cost is exempt from fair value disclosure, since its amortised cost takes its place.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"An amortised cost is not equal to fair value by nature and may differ significantly from it for a long-term instrument.","es":""},"correct":false,"feedback":{"fr":"","en":"This conclusion is consistent with the rule: the amortised cost of a long-term instrument may differ from fair value, which requires the approximation to be examined (IFRS 7). It is not wrong.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS7.000018","standard_id":"IFRS7","concept_ids":["IFRS7.RISKS.NATURE_AND_EXTENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS7.000018","tested_point":"QST.IFRS7.000018","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000005","section_id":"understand"},"references":["IFRS 7 §31"],"exercise":{"prompt":{"fr":"","en":"The disclosures on the nature and extent of the risks arising from financial instruments concern the exposure at the date of initial recognition of each instrument.","es":""},"explanation":{"fr":"","en":"The second objective of IFRS 7 is to provide disclosures that enable users to assess the nature and extent of the risks arising from financial instruments to which the entity is exposed at the end of the reporting period (IFRS 7, para. 31). Trap: Describing the exposure at the inception of each instrument instead of at the end of the reporting period. Rule to remember: The risk disclosures describe the exposure at the end of the reporting period (IFRS 7, para. 31).","es":""},"common_error":{"fr":"","en":"Describing the exposure at inception of each instrument instead of at the end of the reporting period.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS7.000019","standard_id":"IFRS7","concept_ids":["IFRS7.RISKS.NATURE_AND_EXTENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS7.000019","tested_point":"QST.IFRS7.000019","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000005","section_id":"understand"},"references":["IFRS 7 §31"],"exercise":{"prompt":{"fr":"","en":"What is the second part of the objective of IFRS 7, alongside the significance of financial instruments for financial position and performance?","es":""},"explanation":{"fr":"","en":"The second objective of IFRS 7 is to provide disclosures that enable users to assess the nature and extent of the risks arising from financial instruments to which the entity is exposed at the end of the reporting period (IFRS 7, para. 31). The other proposals refer to IAS 32, IFRS 9 and the statement of cash flows. Trap: Documenting only credit risk and omitting liquidity and market risks. Rule to remember: Second part = nature and extent of risks at the end of the reporting period (IFRS 7, para. 31).","es":""},"common_error":{"fr":"","en":"Confusing the risk part of IFRS 7 with classification, the calculation of expected losses or cash flows.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"To enable users to assess the nature and extent of the risks from financial instruments at the reporting date.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"To require each instrument to be classified as a liability or equity according to the substance of the terms of the contracts the entity has entered into rather than their legal form.","es":""},"correct":false,"feedback":{"fr":"","en":"Classification between liabilities and equity falls under IAS 32. The second part of IFRS 7 concerns the disclosures on the nature and extent of risks at the end of the reporting period (IFRS 7, para. 31).","es":""}},{"id":"C","text":{"fr":"","en":"To describe the method for calculating expected credit losses and the stages into which the entity's financial assets are classified.","es":""},"correct":false,"feedback":{"fr":"","en":"The method for calculating expected credit losses falls under IFRS 9; IFRS 7 requires only disclosures on risks, including credit risk (IFRS 7, para. 31). It is not the second part of its objective.","es":""}},{"id":"D","text":{"fr":"","en":"To present the cash flows from financing activities relating to the financial instruments that the entity has issued during the year.","es":""},"correct":false,"feedback":{"fr":"","en":"Financing flows are presented in the statement of cash flows, under another standard. The second part of the objective of IFRS 7 concerns the nature and extent of risks at the end of the reporting period (IFRS 7, para. 31).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS7.000020","standard_id":"IFRS7","concept_ids":["IFRS7.RISKS.NATURE_AND_EXTENT"],"dimension":"ANALYSIS","context":"V1_QST.IFRS7.000020","tested_point":"QST.IFRS7.000020","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000005","section_id":"understand"},"references":["IFRS 7 §31"],"exercise":{"prompt":{"fr":"","en":"A regional bank mainly holds loans, deposits and interest rate derivatives. A colleague comments on the risks to be documented at the reporting date. Which of the colleague's sentences is wrong?","es":""},"explanation":{"fr":"","en":"The second objective of IFRS 7 is to enable users to assess the nature and extent of the risks arising from financial instruments to which the entity is exposed at the reporting date, which covers credit, liquidity and market risks (IFRS 7, para. 31). The wrong sentence reduces the analysis to credit risk alone. Trap: Documenting only credit risk and omitting liquidity and market risks. Rule to remember: Each type of risk to which the entity is exposed is documented (IFRS 7, para. 31).","es":""},"common_error":{"fr":"","en":"Documenting only credit risk and omitting liquidity and market risks.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As the entity mainly holds loans, documenting credit risk is enough.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The entity provides disclosures that enable users to assess the nature and extent of the risks to which it is exposed at the end of the reporting period.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: the second objective of IFRS 7 concerns the nature and extent of the risks to which the entity is exposed at the end of the reporting period (IFRS 7, para. 31). It is not the wrong sentence.","es":""}},{"id":"C","text":{"fr":"","en":"The risks to be documented include in particular credit risk, liquidity risk and market risk.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: credit, liquidity and market are the types of risk to be documented for a portfolio like this one (IFRS 7, para. 31). It is not the wrong sentence.","es":""}},{"id":"D","text":{"fr":"","en":"The disclosures also cover how the entity manages the risks arising from its financial instruments.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: the objective of IFRS 7 includes how the entity manages the risks arising from its financial instruments (IFRS 7, para. 31). It is not the wrong sentence.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS7.000021","standard_id":"IFRS7","concept_ids":["IFRS7.RISKS.QUALITATIVE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS7.000021","tested_point":"QST.IFRS7.000021","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000005","section_id":"rule-qualitative"},"references":["IFRS 7 §33"],"exercise":{"prompt":{"fr":"","en":"Qualitative disclosures on risks may be limited to generalities, with no link to the entity's exposure or to how it manages its risks.","es":""},"explanation":{"fr":"","en":"The entity provides qualitative disclosures for each type of risk, in particular on how the risks arise and how they are managed (IFRS 7, para. 33). Generalities with no link to the exposure describe neither the origin nor the management of the entity's risks. Trap: Reproducing generalities with no link to the entity's actual exposure. Rule to remember: Qualitative = how the risks arise and how they are managed, for each type of risk (IFRS 7, para. 33).","es":""},"common_error":{"fr":"","en":"Reproducing generalities with no link to the entity's actual exposure.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS7.000022","standard_id":"IFRS7","concept_ids":["IFRS7.RISKS.QUALITATIVE"],"dimension":"APPLICATION","context":"V1_QST.IFRS7.000022","tested_point":"QST.IFRS7.000022","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000005","section_id":"rule-qualitative"},"references":["IFRS 7 §33"],"exercise":{"prompt":{"fr":"","en":"Marée SA exports products invoiced in dollars and finances its inventories with a floating-rate loan (case facts). Which wording of qualitative disclosures on currency risk is consistent with the rule?","es":""},"explanation":{"fr":"","en":"Qualitative disclosures are provided for each type of risk and cover in particular how the risks arise and how they are managed (IFRS 7, para. 33). For Marée's currency risk, the note links the risk to the dollar sales and describes its management. Professional judgement: the appropriate level of detail is for the entity to assess. Trap: Reproducing generalities with no link to the entity's actual exposure. Rule to remember: Origin and management of the risk, type of risk by type of risk (IFRS 7, para. 33).","es":""},"common_error":{"fr":"","en":"Reproducing generalities with no link to the actual exposure, or confusing qualitative disclosure with an exposure amount.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A note that describes in general terms the importance of risk management for any exporting business, without mentioning Marée's dollar sales and without linking those sales to the currency risk of the period.","es":""},"correct":false,"feedback":{"fr":"","en":"Generalities on the importance of risk management describe neither the origin of Marée's currency risk nor its management: they do not meet the rule on qualitative disclosures by type of risk (IFRS 7, para. 33).","es":""}},{"id":"B","text":{"fr":"","en":"A note that presents the amount of the dollar exposure at the reporting date, without explaining either the origin of the currency risk or how it is managed.","es":""},"correct":false,"feedback":{"fr":"","en":"An exposure amount is quantitative information. Qualitative disclosures explain how the risk arises and how it is managed; an amount alone does not replace them (IFRS 7, para. 33).","es":""}},{"id":"C","text":{"fr":"","en":"A note that explains how currency risk arises from the dollar-invoiced sales and how management manages it, for example through its hedging policy.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A single note on the entity's risks, without distinguishing currency risk from the interest rate risk on the floating-rate loan, to avoid repetition.","es":""},"correct":false,"feedback":{"fr":"","en":"Qualitative disclosures are provided for each type of risk. Grouping currency risk and interest rate risk in a note without distinguishing them does not comply with this rule (IFRS 7, para. 33).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS7.000023","standard_id":"IFRS7","concept_ids":["IFRS7.RISKS.QUALITATIVE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS7.000023","tested_point":"QST.IFRS7.000023","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000005","section_id":"rule-qualitative"},"references":["IFRS 7 §33"],"exercise":{"prompt":{"fr":"","en":"Which statements about the qualitative disclosures on risks are correct? Several answers are possible.","es":""},"explanation":{"fr":"","en":"The entity provides qualitative disclosures for each type of risk, in particular on how the risks arise and how they are managed (IFRS 7, para. 33). They do not replace the quantitative disclosures and are not grouped into a single block. Trap: Reproducing generalities with no link to the entity's actual exposure. Rule to remember: One qualitative part per type of risk: origin and management (IFRS 7, para. 33).","es":""},"common_error":{"fr":"","en":"Grouping the qualitative disclosures of all risks together or making them stand in for quantitative disclosures.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Qualitative disclosures are provided globally for all risks together, without distinguishing the type of risk concerned.","es":""},"correct":false,"feedback":{"fr":"","en":"Qualitative disclosures are provided type of risk by type of risk, not globally: an undifferentiated grouping does not meet the rule (IFRS 7, para. 33). It loses the origin and management specific to each risk.","es":""}},{"id":"B","text":{"fr":"","en":"Qualitative disclosures are provided for each type of risk to which the entity is exposed.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"They replace the quantitative disclosures on exposure, as long as the risk management policy is described.","es":""},"correct":false,"feedback":{"fr":"","en":"Qualitative disclosures complement the quantitative disclosures on exposure and concentration; they do not replace them, even when the risk management policy is described (IFRS 7, para. 33).","es":""}},{"id":"D","text":{"fr":"","en":"They cover in particular how the risks arise and how they are managed by the entity.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS7.000024","standard_id":"IFRS7","concept_ids":["IFRS7.RISKS.QUANTITATIVE"],"dimension":"APPLICATION","context":"V1_QST.IFRS7.000024","tested_point":"QST.IFRS7.000024","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000005","section_id":"rule-quantitative"},"references":["IFRS 7 §34"],"exercise":{"prompt":{"fr":"","en":"Étoile SA has 70% of its receivables from one customer and 85% of its deposits with a single bank (case facts). Which conclusion is consistent with the quantitative disclosures on risks?","es":""},"explanation":{"fr":"","en":"The entity provides quantitative disclosures on its exposure to each type of risk at the reporting date and on the concentration of risk (IFRS 7, para. 34). In the case, the 70% of receivables from one customer and the 85% of deposits with a bank are concentrations to flag. Trap: Failing to flag a significant risk concentration on a counterparty or a sector. Rule to remember: Exposure at the reporting date and risk concentration are both provided (IFRS 7, para. 34).","es":""},"common_error":{"fr":"","en":"Failing to flag a significant risk concentration on a counterparty or a sector.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It provides its exposure at the reporting date without mentioning these concentrations, which are for management's internal analyses and not for the notes.","es":""},"correct":false,"feedback":{"fr":"","en":"Risk concentrations are part of the quantitative disclosures to be provided: they are not just for internal analyses. Leaving them out omits a required element (IFRS 7, para. 34).","es":""}},{"id":"B","text":{"fr":"","en":"It provides its exposure to each type of risk at the reporting date and flags these risk concentrations on a counterparty.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It replaces the exposure at the reporting date with the average exposure for the year, judged more representative of the entity's activity.","es":""},"correct":false,"feedback":{"fr":"","en":"The quantitative disclosures concern the exposure at the reporting date, not an average for the year. Replacing one with the other does not comply with the rule (IFRS 7, para. 34).","es":""}},{"id":"D","text":{"fr":"","en":"It limits the disclosure to the concentration, since the total exposure is already visible in the statement of financial position.","es":""},"correct":false,"feedback":{"fr":"","en":"Concentration complements the exposure to each risk, it does not replace it: both are provided. That the total is visible in the statement of financial position does not dispense with the exposure by type of risk (IFRS 7, para. 34).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS7.000025","standard_id":"IFRS7","concept_ids":["IFRS7.RISKS.QUANTITATIVE"],"dimension":"ANALYSIS","context":"V1_QST.IFRS7.000025","tested_point":"QST.IFRS7.000025","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000005","section_id":"rule-quantitative"},"references":["IFRS 7 §34"],"exercise":{"prompt":{"fr":"","en":"A working paper describes the quantitative disclosures on a company's risks. Which of its sentences is wrong?","es":""},"explanation":{"fr":"","en":"The quantitative disclosures concern the exposure to each type of risk at the reporting date and the concentration of risk; the sensitivity analysis falls under a separate paragraph (IFRS 7, para. 34). The wrong sentence confuses the two. Trap: Failing to flag a significant risk concentration on a counterparty or a sector. Rule to remember: Sensitivity and exposure do not replace each other (IFRS 7, para. 34).","es":""},"common_error":{"fr":"","en":"Making the sensitivity analysis stand in for information on exposure and concentration.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The entity provides quantitative information on its exposure to each type of risk at the reporting date.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: the quantitative disclosures concern the exposure to each type of risk at the reporting date (IFRS 7, para. 34). It is not the wrong sentence.","es":""}},{"id":"B","text":{"fr":"","en":"The quantitative disclosures also cover the concentration of risk with a counterparty or a sector.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: the quantitative disclosures also cover the concentration of risk (IFRS 7, para. 34). It is not the wrong sentence.","es":""}},{"id":"C","text":{"fr":"","en":"The sensitivity analysis falls under a separate paragraph from the one dealing with quantitative information on exposure.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: the sensitivity analysis falls under a separate paragraph from the quantitative information on exposure (IFRS 7, para. 34). It is not the wrong sentence.","es":""}},{"id":"D","text":{"fr":"","en":"The sensitivity analysis stands in for quantitative information on exposure and concentration.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS7.000028","standard_id":"IFRS7","concept_ids":["IFRS7.CREDIT_RISK.EXPOSURE_BY_RATING_GRADE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS7.000028","tested_point":"QST.IFRS7.000028","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000006","section_id":"rule-grades"},"references":["IFRS 7 §35M"],"exercise":{"prompt":{"fr":"","en":"Which statements about the credit risk table by rating grade are correct? Several answers are possible.","es":""},"explanation":{"fr":"","en":"The entity provides, by credit risk rating grade, the gross carrying amount of financial assets and the exposure of loan commitments and financial guarantees, broken down according to whether the loss allowance corresponds to 12-month expected losses, lifetime losses or assets credit-impaired on purchase or origination (IFRS 7, para. 35M). Trap: Omitting a category of expected losses, so that the total of the table differs from the gross carrying amount. Rule to remember: Gross amount by grade, broken down by category of expected losses (IFRS 7, para. 35M).","es":""},"common_error":{"fr":"","en":"Omitting a category of expected losses or limiting the table to loans measured at amortised cost.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The entity provides, by credit risk rating grade, the gross carrying amount of the financial assets concerned.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The table presents the loss allowance of each rating grade, without the gross carrying amount to which it relates.","es":""},"correct":false,"feedback":{"fr":"","en":"The table concerns gross carrying amounts broken down by grade, with the loss allowance category: presenting the loss allowance alone, without the gross amount, does not meet the rule (IFRS 7, para. 35M).","es":""}},{"id":"C","text":{"fr":"","en":"The table concerns loans measured at amortised cost, to the exclusion of loan commitments and financial guarantees.","es":""},"correct":false,"feedback":{"fr":"","en":"The table also covers the exposure of loan commitments and financial guarantees, in addition to the gross carrying amount of financial assets (IFRS 7, para. 35M). Limiting it to loans at amortised cost is an error.","es":""}},{"id":"D","text":{"fr":"","en":"The breakdown distinguishes assets according to whether the loss allowance corresponds to 12-month expected losses, to lifetime losses, or to assets credit-impaired on purchase or origination.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS7.000029","standard_id":"IFRS7","concept_ids":["IFRS7.CREDIT_RISK.EXPOSURE_BY_RATING_GRADE"],"dimension":"CALCULATION","context":"V1_QST.IFRS7.000029","tested_point":"QST.IFRS7.000029","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000006","section_id":"rule-grades"},"references":["IFRS 7 §35M"],"exercise":{"prompt":{"fr":"","en":"Phare SA prepares its credit risk table on its loans (gross carrying amounts, case data). 12-month expected losses: grade A {m12_a}, grade B {m12_b}, grade C {m12_c}. Lifetime expected losses, not credit-impaired: grade C {life_c}, grade D {life_d}. Credit-impaired assets: grade D {impaired_d}. Calculate the total gross carrying amount in 12-month expected losses, then the total of the table, which must equal the gross carrying amount of the loans.","es":""},"explanation":{"fr":"","en":"Method: 12-month total = 410,000 + 250,000 + 100,000 = 760,000; lifetime total, not credit-impaired = 55,000 + 40,000 = 95,000; total of the table = 760,000 + 95,000 + 45,000 = 900,000. The table breaks the gross carrying amount down by grade and by category of expected losses; its total must equal the gross carrying amount of the loans, with no category omitted (IFRS 7, para. 35M). Trap: Omitting a category of expected losses, so that the total of the table differs from the gross carrying amount. Rule to remember: Total of the table = sum of all categories = gross carrying amount (IFRS 7, para. 35M).","es":""},"common_error":{"fr":"","en":"Omitting a category of expected losses, so that the total of the table differs from the gross carrying amount.","es":""},"format":"CALCULATION","placeholders":[{"id":"m12_a","value":"410000","unit":"EUR"},{"id":"m12_b","value":"250000","unit":"EUR"},{"id":"m12_c","value":"100000","unit":"EUR"},{"id":"life_c","value":"55000","unit":"EUR"},{"id":"life_d","value":"40000","unit":"EUR"},{"id":"impaired_d","value":"45000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"12-month expected losses, grade A","es":""},"value":"410000","unit":"EUR"},{"label":{"fr":"","en":"12-month expected losses, grade B","es":""},"value":"250000","unit":"EUR"},{"label":{"fr":"","en":"12-month expected losses, grade C","es":""},"value":"100000","unit":"EUR"},{"label":{"fr":"","en":"Lifetime expected losses, grade C","es":""},"value":"55000","unit":"EUR"},{"label":{"fr":"","en":"Lifetime expected losses, grade D","es":""},"value":"40000","unit":"EUR"},{"label":{"fr":"","en":"Credit-impaired assets, grade D","es":""},"value":"45000","unit":"EUR"}],"steps":[{"id":"TOTAL_12M","label":{"fr":"","en":"Total in 12-month expected losses","es":""},"answer":760000,"tolerance":0,"unit":"EUR"},{"id":"TOTAL_GROSS","label":{"fr":"","en":"Total of the table (gross carrying amount of the loans)","es":""},"answer":900000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"TOTAL_12M","meaning":{"fr":"","en":"Total in 12-month expected losses","es":""},"expression":"a + b + c","variables":[{"symbol":"a","meaning":{"fr":"","en":"12-month expected losses, grade A","es":""},"value":410000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"12-month expected losses, grade B","es":""},"value":250000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"12-month expected losses, grade C","es":""},"value":100000,"unit":"EUR"}],"result":760000,"unit":"EUR"},{"step":"TOTAL_GROSS","meaning":{"fr":"","en":"Total of the table (gross carrying amount of the loans)","es":""},"expression":"a + (b + c) + d","variables":[{"symbol":"a","meaning":{"fr":"","en":"Total in 12-month expected losses","es":""},"value":760000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Lifetime expected losses, grade C","es":""},"value":55000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Lifetime expected losses, grade D","es":""},"value":40000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Credit-impaired assets, grade D","es":""},"value":45000,"unit":"EUR"}],"result":900000,"unit":"EUR"}],"rationale":{"fr":"","en":"Total of the table = sum of all categories = gross carrying amount (IFRS 7, para. 35M).","es":""},"references":["REF.IFRS7.35M"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS7.000030","standard_id":"IFRS7","concept_ids":["IFRS7.CREDIT_RISK.EXPOSURE_BY_RATING_GRADE"],"dimension":"ANALYSIS","context":"V1_QST.IFRS7.000030","tested_point":"QST.IFRS7.000030","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000006","section_id":"rule-grades"},"references":["IFRS 7 §35M"],"exercise":{"prompt":{"fr":"","en":"An analyst checks a bank's credit risk table by rating grade. Which of the analyst's conclusions is wrong?","es":""},"explanation":{"fr":"","en":"The table breaks down the gross carrying amount of financial assets, and the exposure of loan commitments and financial guarantees, by rating grade and according to whether the loss allowance corresponds to 12-month expected losses, lifetime losses or assets credit-impaired on purchase or origination (IFRS 7, para. 35M). The wrong conclusion omits a category. Trap: Omitting a category of expected losses, so that the total of the table differs from the gross carrying amount. Rule to remember: No category of the breakdown may be omitted (IFRS 7, para. 35M).","es":""},"common_error":{"fr":"","en":"Omitting a category of expected losses from the table.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The sum of the amounts in the table must equal the total gross carrying amount of the financial assets concerned.","es":""},"correct":false,"feedback":{"fr":"","en":"This conclusion is correct: the sum of the amounts in the table equals the total gross carrying amount, with no category omitted (IFRS 7, para. 35M). It is not the wrong conclusion.","es":""}},{"id":"B","text":{"fr":"","en":"The table may omit assets credit-impaired on purchase or origination, since they already have a loss allowance of their own.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Loan commitments and financial guarantees appear in it with their exposure, broken down by category of expected losses at the reporting date.","es":""},"correct":false,"feedback":{"fr":"","en":"This conclusion is correct: the exposure of loan commitments and financial guarantees is broken down in the same way, in addition to the gross carrying amount of assets (IFRS 7, para. 35M). It is not the wrong conclusion.","es":""}},{"id":"D","text":{"fr":"","en":"The breakdown distinguishes 12-month expected losses and lifetime expected losses, according to the situation of each asset.","es":""},"correct":false,"feedback":{"fr":"","en":"This conclusion is correct: the breakdown distinguishes 12-month and lifetime expected losses, as well as assets credit-impaired on purchase or origination (IFRS 7, para. 35M). It is not the wrong conclusion.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS7.000031","standard_id":"IFRS7","concept_ids":["IFRS7.CREDIT_RISK.ALLOWANCE_RECONCILIATION"],"dimension":"CALCULATION","context":"V1_QST.IFRS7.000031","tested_point":"QST.IFRS7.000031","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000007","section_id":"rule-reconciliation"},"references":["IFRS 7 §35H"],"exercise":{"prompt":{"fr":"","en":"Borée Banque SA prepares the reconciliation of the loss allowance for expected credit losses on its loans. Opening allowance {opening_allowance}; charge for the year {charge}; loans written off and charged against the allowance {write_offs}. The draft note shows a closing allowance of {reported_closing} (case data; no other movement). Calculate the closing loss allowance, then the difference between the draft and your calculation.","es":""},"explanation":{"fr":"","en":"Method: 410,000 + 230,000 − 95,000 = 545,000; difference with the draft: 552,000 − 545,000 = 7,000. The reconciliation explains the changes in the loss allowance for the period (charge, write-offs, etc.); a write-off is charged against the loss allowance and not against the charge for the period (IFRS 7, para. 35H). The draft is therefore overstated by 7,000. Trap: Charging a write-off to the charge for the period instead of the loss allowance. Rule to remember: Closing = opening + charge − write-offs charged (IFRS 7, para. 35H).","es":""},"common_error":{"fr":"","en":"Charging a write-off to the charge for the period instead of the loss allowance.","es":""},"format":"CALCULATION","placeholders":[{"id":"opening_allowance","value":"410000","unit":"EUR"},{"id":"charge","value":"230000","unit":"EUR"},{"id":"write_offs","value":"95000","unit":"EUR"},{"id":"reported_closing","value":"552000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Opening loss allowance","es":""},"value":"410000","unit":"EUR"},{"label":{"fr":"","en":"Charge for the year","es":""},"value":"230000","unit":"EUR"},{"label":{"fr":"","en":"Write-offs charged against the loss allowance","es":""},"value":"95000","unit":"EUR"},{"label":{"fr":"","en":"Closing allowance in the draft note","es":""},"value":"552000","unit":"EUR"}],"steps":[{"id":"CLOSING_ALLOWANCE","label":{"fr":"","en":"Closing loss allowance","es":""},"answer":545000,"tolerance":0,"unit":"EUR"},{"id":"DRAFT_DIFFERENCE","label":{"fr":"","en":"Difference between the draft and the calculation","es":""},"answer":7000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"CLOSING_ALLOWANCE","meaning":{"fr":"","en":"Closing loss allowance","es":""},"expression":"a + b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Opening loss allowance","es":""},"value":410000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Charge for the year","es":""},"value":230000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Write-offs charged against the loss allowance","es":""},"value":95000,"unit":"EUR"}],"result":545000,"unit":"EUR"},{"step":"DRAFT_DIFFERENCE","meaning":{"fr":"","en":"Difference between the draft and the calculation","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Closing allowance in the draft note","es":""},"value":552000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Closing loss allowance","es":""},"value":545000,"unit":"EUR"}],"result":7000,"unit":"EUR"}],"rationale":{"fr":"","en":"Closing = opening + charge − write-offs charged (IFRS 7, para. 35H).","es":""},"references":["REF.IFRS7.35H"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS7.000033","standard_id":"IFRS7","concept_ids":["IFRS7.CREDIT_RISK.ALLOWANCE_RECONCILIATION"],"dimension":"ANALYSIS","context":"V1_QST.IFRS7.000033","tested_point":"QST.IFRS7.000033","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000007","section_id":"rule-reconciliation"},"references":["IFRS 7 §35H"],"exercise":{"prompt":{"fr":"","en":"A trainee summarises the reconciliation of the loss allowance for expected credit losses. Which of the trainee's sentences is wrong?","es":""},"explanation":{"fr":"","en":"The entity explains the changes in the loss allowance for the period through a reconciliation from opening to closing, presented by class and in a table, that separates the allowance measured on 12-month expected credit losses, the allowance measured on lifetime expected credit losses and the allowance on assets credit-impaired at purchase or origination (IFRS 7, para. 35H). The wrong sentence reduces the reconciliation to the charge. Trap: Charging a write-off to the charge for the period instead of the loss allowance. Rule to remember: The reconciliation presents all the changes of the period, split by allowance basis, not only the charge (IFRS 7, para. 35H).","es":""},"common_error":{"fr":"","en":"Limiting the reconciliation to the opening balance, the charge and the closing balance.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The reconciliation explains the changes in the loss allowance for the period, from the opening balance to the closing balance.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: the reconciliation explains, from the opening to the closing balance, the changes in the loss allowance for the period (IFRS 7, para. 35H). It is not the wrong sentence.","es":""}},{"id":"B","text":{"fr":"","en":"The reconciliation, presented by class and in a table, separates the allowance measured on 12 months, on lifetime and on assets credit-impaired at origination.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: the reconciliation is presented by class, in a table, and split by the basis on which the loss allowance is measured (IFRS 7, para. 35H). It is not the wrong sentence.","es":""}},{"id":"C","text":{"fr":"","en":"A write-off charged against the loss allowance reduces it without going through the charge for the period.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: a write-off is charged against the existing loss allowance, which it reduces, without going through the charge for the period (IFRS 7, para. 35H). It is not the wrong sentence.","es":""}},{"id":"D","text":{"fr":"","en":"The reconciliation is limited to the opening balance, the charge and the closing balance.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS7.000034","standard_id":"IFRS7","concept_ids":["IFRS7.CREDIT_RISK.COLLATERAL_MAX_EXPOSURE"],"dimension":"APPLICATION","context":"V1_QST.IFRS7.000034","tested_point":"QST.IFRS7.000034","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000007","section_id":"rule-collateral"},"references":["IFRS 7 §35K"],"exercise":{"prompt":{"fr":"","en":"Tanit Banque SA has granted loans for a total of 2,000,000, secured by mortgages worth 1,500,000 (case facts). What amount does it present as the maximum exposure to credit risk, under the IFRS 7 rule?","es":""},"explanation":{"fr":"","en":"The maximum exposure to credit risk is stated before deducting the collateral held, the latter being described separately (IFRS 7, para. 35K). Tanit therefore presents 2,000,000 as the maximum exposure and describes the 1,500,000 of mortgages separately. Trap: Deducting the value of the collateral from the maximum exposure to the point of presenting a net maximum exposure. Rule to remember: Maximum exposure before collateral; collateral described separately (IFRS 7, para. 35K).","es":""},"common_error":{"fr":"","en":"Deducting the value of the collateral from the maximum exposure to the point of presenting a net maximum exposure.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"2,000,000, the maximum exposure being stated before deducting the collateral held, which is described separately.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"500,000, being the net exposure after deducting the mortgages, which the bank adopts as the maximum exposure to credit risk.","es":""},"correct":false,"feedback":{"fr":"","en":"Deducting the mortgages amounts to presenting a net exposure, not the maximum exposure. The latter is stated before deducting the collateral held, which is described separately (IFRS 7, para. 35K).","es":""}},{"id":"C","text":{"fr":"","en":"1,500,000, being the value of the collateral, which measures the share of credit risk the bank has actually covered.","es":""},"correct":false,"feedback":{"fr":"","en":"The value of the collateral is not the maximum exposure: it is described separately, the maximum exposure being stated before its deduction (IFRS 7, para. 35K). The two pieces of information are not to be confused.","es":""}},{"id":"D","text":{"fr":"","en":"An amount chosen by management between 500,000 and 2,000,000, depending on the confidence it places in the value of the mortgages held.","es":""},"correct":false,"feedback":{"fr":"","en":"The amount of the maximum exposure does not depend on management's confidence in the collateral: it is stated before its deduction, and the collateral is described separately (IFRS 7, para. 35K).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS7.000035","standard_id":"IFRS7","concept_ids":["IFRS7.CREDIT_RISK.COLLATERAL_MAX_EXPOSURE"],"dimension":"CALCULATION","context":"V1_QST.IFRS7.000035","tested_point":"QST.IFRS7.000035","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000007","section_id":"rule-collateral"},"references":["IFRS 7 §35K"],"exercise":{"prompt":{"fr":"","en":"Tanit Banque SA has two loans. Loan X: maximum exposure {exposure_x}, collateral held worth {collateral_x}. Loan Y: maximum exposure {exposure_y}, collateral held worth {collateral_y}. To measure the net exposure, the value of collateral taken into account for a loan is capped at the exposure of that loan (case data; supplementary information, the maximum exposure itself remaining stated before collateral). Calculate the net exposure after collateral for X, for Y, then the total.","es":""},"explanation":{"fr":"","en":"Method. X: 1,200,000 − 800,000 = 400,000. Y: the collateral of 450,000 exceeds the exposure of 300,000; the value taken into account is capped at 300,000, giving a net exposure of 300,000 − 300,000 = 0, not a negative amount. Total: 400,000 + 0 = 400,000. The maximum exposure of each loan remains stated before deducting the collateral held, which is described separately (IFRS 7, para. 35K). Trap: Deducting from the exposure collateral in excess of the exposure and obtaining a negative net exposure. Rule to remember: Net exposure = exposure − collateral capped at the exposure; the maximum exposure is stated before collateral (IFRS 7, para. 35K).","es":""},"common_error":{"fr":"","en":"Deducting collateral greater than the exposure and obtaining a negative net exposure.","es":""},"format":"CALCULATION","placeholders":[{"id":"exposure_x","value":"1200000","unit":"EUR"},{"id":"collateral_x","value":"800000","unit":"EUR"},{"id":"exposure_y","value":"300000","unit":"EUR"},{"id":"collateral_y","value":"450000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Maximum exposure of loan X","es":""},"value":"1200000","unit":"EUR"},{"label":{"fr":"","en":"Value of the collateral of loan X","es":""},"value":"800000","unit":"EUR"},{"label":{"fr":"","en":"Maximum exposure of loan Y","es":""},"value":"300000","unit":"EUR"},{"label":{"fr":"","en":"Value of the collateral of loan Y","es":""},"value":"450000","unit":"EUR"}],"steps":[{"id":"NET_X","label":{"fr":"","en":"Net exposure of loan X","es":""},"answer":400000,"tolerance":0,"unit":"EUR"},{"id":"NET_Y","label":{"fr":"","en":"Net exposure of loan Y","es":""},"answer":0,"tolerance":0,"unit":"EUR"},{"id":"TOTAL_NET","label":{"fr":"","en":"Total net exposure after collateral","es":""},"answer":400000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"NET_X","meaning":{"fr":"","en":"Net exposure of loan X","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Maximum exposure of loan X","es":""},"value":1200000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Value of the collateral of loan X","es":""},"value":800000,"unit":"EUR"}],"result":400000,"unit":"EUR"},{"step":"TOTAL_NET","meaning":{"fr":"","en":"Total net exposure after collateral","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Net exposure of loan X","es":""},"value":400000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Net exposure of loan Y","es":""},"value":0,"unit":"EUR"}],"result":400000,"unit":"EUR"}],"rationale":{"fr":"","en":"Net exposure = exposure − collateral capped at the exposure; the maximum exposure is stated before collateral (IFRS 7, para. 35K).","es":""},"references":["REF.IFRS7.35K"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS7.000036","standard_id":"IFRS7","concept_ids":["IFRS7.LIQUIDITY_MARKET.MATURITY_ANALYSIS"],"dimension":"CALCULATION","context":"V1_QST.IFRS7.000036","tested_point":"QST.IFRS7.000036","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000008","section_id":"rule-maturity"},"references":["IFRS 7 §39","IFRS 7 §B11D"],"exercise":{"prompt":{"fr":"","en":"Cèdre SA has two non-derivative financial liabilities at 31 December: trade payables of {trade_payables}, payable in three months, and a loan of {loan_principal}, repayable in two years, with contractual interest of {annual_interest} paid at the end of each year. Total carrying amount of the two liabilities: {carrying_amount}. Prepare the maturity analysis in undiscounted contractual cash flows: total of the \"less than one year\" bucket, total of the \"one to two years\" bucket, then the difference between the total of the flows and the carrying amount.","es":""},"explanation":{"fr":"","en":"Method. Less than one year: 300,000 + 56,000 (first-year interest) = 356,000. One to two years: 800,000 + 56,000 (second-year interest) = 856,000. Total undiscounted contractual cash flows: 356,000 + 856,000 = 1,212,000; difference with the carrying amount: 1,212,000 − 1,100,000 = 112,000, that is, the future interest. The analysis concerns undiscounted contractual cash flows, separately for non-derivative liabilities (IFRS 7, para. 39; B11D). Trap: Presenting discounted flows or the carrying amount in the maturity analysis. Rule to remember: Maturities = undiscounted contractual cash flows, by bucket (IFRS 7, para. 39; B11D).","es":""},"common_error":{"fr":"","en":"Presenting discounted flows or the carrying amount in the maturity analysis.","es":""},"format":"CALCULATION","placeholders":[{"id":"trade_payables","value":"300000","unit":"EUR"},{"id":"loan_principal","value":"800000","unit":"EUR"},{"id":"annual_interest","value":"56000","unit":"EUR"},{"id":"carrying_amount","value":"1100000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Trade payables (payable in three months)","es":""},"value":"300000","unit":"EUR"},{"label":{"fr":"","en":"Loan principal (repayable in two years)","es":""},"value":"800000","unit":"EUR"},{"label":{"fr":"","en":"Annual contractual interest on the loan","es":""},"value":"56000","unit":"EUR"},{"label":{"fr":"","en":"Total carrying amount of the two liabilities","es":""},"value":"1100000","unit":"EUR"}],"steps":[{"id":"BUCKET_UNDER_1Y","label":{"fr":"","en":"Total of the \"less than one year\" bucket","es":""},"answer":356000,"tolerance":0,"unit":"EUR"},{"id":"BUCKET_1_TO_2Y","label":{"fr":"","en":"Total of the \"one to two years\" bucket","es":""},"answer":856000,"tolerance":0,"unit":"EUR"},{"id":"DIFFERENCE","label":{"fr":"","en":"Difference between contractual flows and carrying amount","es":""},"answer":112000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"DIFFERENCE","meaning":{"fr":"","en":"Difference between contractual flows and carrying amount","es":""},"expression":"(a + b) - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Total of the \"less than one year\" bucket","es":""},"value":356000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Total of the \"one to two years\" bucket","es":""},"value":856000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Total carrying amount of the two liabilities","es":""},"value":1100000,"unit":"EUR"}],"result":112000,"unit":"EUR"}],"rationale":{"fr":"","en":"Maturities = undiscounted contractual cash flows, by bucket (IFRS 7, para. 39; B11D).","es":""},"references":["REF.IFRS7.39"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS7.000037","standard_id":"IFRS7","concept_ids":["IFRS7.LIQUIDITY_MARKET.MATURITY_ANALYSIS"],"dimension":"ANALYSIS","context":"V1_QST.IFRS7.000037","tested_point":"QST.IFRS7.000037","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000008","section_id":"rule-maturity"},"references":["IFRS 7 §B11D"],"exercise":{"prompt":{"fr":"","en":"A working paper comments on the maturity analysis of a company's financial liabilities. Which of its sentences is wrong?","es":""},"explanation":{"fr":"","en":"The amounts in the maturity analysis are undiscounted contractual cash flows, not discounted flows (IFRS 7, para. B11D); in practice, presenting discounted flows is a frequent error. The wrong sentence applies the effective interest rate to the flows. Trap: Presenting discounted flows or the carrying amount in the maturity analysis. Rule to remember: Undiscounted contractual flows, never discounted ones (IFRS 7, para. B11D).","es":""},"common_error":{"fr":"","en":"Presenting discounted flows or the carrying amount in the maturity analysis.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The analysis concerns the undiscounted contractual cash flows of the entity's financial liabilities.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: the amounts in the maturity analysis are undiscounted contractual cash flows (IFRS 7, para. B11D). It is not the wrong sentence.","es":""}},{"id":"B","text":{"fr":"","en":"The analysis is provided separately for non-derivative financial liabilities and for derivative liabilities.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: the maturity analysis is provided separately for non-derivative financial liabilities and for derivative liabilities (IFRS 7, para. 39). It is not the wrong sentence.","es":""}},{"id":"C","text":{"fr":"","en":"The maturity analysis uses cash flows discounted at the effective interest rate.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The difference between the total of the contractual flows and the carrying amount is explained in particular by future interest not yet recognised.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: undiscounted contractual flows include future interest, whereas the carrying amount does not yet include it; the difference is explained that way (IFRS 7, para. B11D). It is not the wrong sentence.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS7.000039","standard_id":"IFRS7","concept_ids":["IFRS7.LIQUIDITY_MARKET.SUPPLIER_FINANCE_CONCENTRATION"],"dimension":"APPLICATION","context":"V1_QST.IFRS7.000039","tested_point":"QST.IFRS7.000039","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000008","section_id":"rule-supplier"},"references":["IFRS 7 §B11F"],"exercise":{"prompt":{"fr":"","en":"Cobra SA has transferred to a single finance provider the payment of 85% of its trade payables, under a supplier finance arrangement (case facts). Which analysis is consistent with the disclosures on liquidity risk management?","es":""},"explanation":{"fr":"","en":"To describe how it manages liquidity risk, the entity may consider, among other things, significant concentrations of its funding sources and access to supplier finance arrangements (IFRS 7, para. B11F); payables concentrated with a single provider, rather than with a diversified set of suppliers, combine these two factors. Case facts: 85% of trade payables with a single provider. Professional judgement: the extent of the concentration to be described is assessed on the entity's facts. Trap: Treating the supplier finance arrangement as a mere trade payables line with no effect on liquidity risk. Rule to remember: Supplier finance and concentration of funding sources = liquidity risk factors to be described (IFRS 7, para. B11F).","es":""},"common_error":{"fr":"","en":"Treating the supplier finance arrangement as a mere trade payables line with no effect on liquidity risk.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The arrangement does not affect liquidity risk, because the payables remain ordinary trade payables whose contractual maturity is unchanged for Cobra.","es":""},"correct":false,"feedback":{"fr":"","en":"The arrangement is not neutral for liquidity risk: using supplier finance and concentrating payables with a single provider are factors to be described (IFRS 7, para. B11F). Treating these payables as a mere trade payables line ignores this.","es":""}},{"id":"B","text":{"fr":"","en":"The arrangement reduces liquidity risk, since a single counterparty is easier to manage than many suppliers with different due dates.","es":""},"correct":false,"feedback":{"fr":"","en":"A single counterparty concentrates risk instead of reducing it: if the provider withdraws its financing, all the trade payables concerned are affected. The standard lists such concentrations and supplier finance among the liquidity risk factors (IFRS 7, para. B11F).","es":""}},{"id":"C","text":{"fr":"","en":"Payables concentrated with a single provider, rather than spread across many suppliers, can create liquidity risk: the arrangement is a factor to be described.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The arrangement falls under IAS 7 and need not be taken into account in the IFRS 7 disclosures on liquidity risk management.","es":""},"correct":false,"feedback":{"fr":"","en":"The disclosures specific to supplier finance arrangements are required by IAS 7, but IFRS 7 also lists access to these arrangements among the liquidity risk management factors (IFRS 7, para. B11F). Both standards therefore apply, each for its part.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS7.000040","standard_id":"IFRS7","concept_ids":["IFRS7.LIQUIDITY_MARKET.SENSITIVITY_ANALYSIS"],"dimension":"CALCULATION","context":"V1_QST.IFRS7.000040","tested_point":"QST.IFRS7.000040","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000009","section_id":"rule-sensitivity"},"references":["IFRS 7 §40"],"exercise":{"prompt":{"fr":"","en":"Aurore SA has floating-rate borrowings of {floating_debt} at the reporting date, unhedged. Management considers a rise in rates of {rate_change} reasonably possible for the next year (management's judgement, case data). Calculate the effect of this change on profit before tax, in absolute value (a rise in rates reduces profit); the tax effect is ignored.","es":""},"explanation":{"fr":"","en":"Method: 4,500,000 × 0.75% = 33,750, the decrease in profit before tax if rates rise by the change judged reasonably possible. The sensitivity analysis uses reasonably possible changes in the relevant risk variables, with their effects on profit or loss and equity, and the methods and assumptions used (IFRS 7, para. 40). Professional judgement: the 0.75% change is the one management considers reasonably possible. Trap: Using an arbitrary rate change without assessing what is reasonably possible. Rule to remember: Effect = exposure × reasonably possible change (IFRS 7, para. 40).","es":""},"common_error":{"fr":"","en":"Using an arbitrary rate change without assessing what is reasonably possible.","es":""},"format":"CALCULATION","placeholders":[{"id":"floating_debt","value":"4500000","unit":"EUR"},{"id":"rate_change","value":"0.75","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Unhedged floating-rate borrowings","es":""},"value":"4500000","unit":"EUR"},{"label":{"fr":"","en":"Reasonably possible rise in rates","es":""},"value":"0.75","unit":"PERCENT"}],"steps":[{"id":"PROFIT_EFFECT","label":{"fr":"","en":"Effect on profit before tax (decrease)","es":""},"answer":33750,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"PROFIT_EFFECT","meaning":{"fr":"","en":"Effect on profit before tax (decrease)","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Unhedged floating-rate borrowings","es":""},"value":4500000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Reasonably possible rise in rates","es":""},"value":0.75,"unit":"PERCENT"}],"result":33750,"unit":"EUR"}],"rationale":{"fr":"","en":"Effect = exposure × reasonably possible change (IFRS 7, para. 40).","es":""},"references":["REF.IFRS7.40"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS7.000041","standard_id":"IFRS7","concept_ids":["IFRS7.LIQUIDITY_MARKET.SENSITIVITY_ANALYSIS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS7.000041","tested_point":"QST.IFRS7.000041","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000009","section_id":"rule-sensitivity"},"references":["IFRS 7 §40"],"exercise":{"prompt":{"fr":"","en":"What does the sensitivity analysis for market risk include? Several answers are possible.","es":""},"explanation":{"fr":"","en":"For each type of market risk, the entity provides a sensitivity analysis according to reasonably possible changes in the significant risk variables, with the effects on profit or loss and on equity, the methods and assumptions used and changes in them (IFRS 7, para. 40). Trap: Omitting the effect on equity, or using an arbitrary change. Rule to remember: Reasonably possible changes, effects on profit or loss and equity, methods and assumptions (IFRS 7, para. 40).","es":""},"common_error":{"fr":"","en":"Omitting the effect on equity or using an arbitrary rate change.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The effects on profit or loss and on equity of reasonably possible changes in the significant risk variables.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The effect on profit or loss, equity being excluded from the analysis, since profit or loss interests users more.","es":""},"correct":false,"feedback":{"fr":"","en":"The analysis concerns the effects on profit or loss and on equity: excluding equity omits a required element, whatever the users are assumed to prefer (IFRS 7, para. 40).","es":""}},{"id":"C","text":{"fr":"","en":"The methods and assumptions used to prepare the analysis, and changes in them from one period to the next.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"An arbitrary change of ten percentage points in rates, adopted for all entities in order to facilitate comparisons between them.","es":""},"correct":false,"feedback":{"fr":"","en":"The change must be reasonably possible for the entity, not arbitrary or uniform: a change set at ten points for all entities does not meet the analysis required (IFRS 7, para. 40).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS7.000042","standard_id":"IFRS7","concept_ids":["IFRS7.LIQUIDITY_MARKET.SENSITIVITY_ANALYSIS"],"dimension":"ANALYSIS","context":"V1_QST.IFRS7.000042","tested_point":"QST.IFRS7.000042","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000009","section_id":"rule-sensitivity"},"references":["IFRS 7 §40"],"exercise":{"prompt":{"fr":"","en":"Four employees from different groups describe their practice for the interest rate sensitivity analysis. Which of these practices is wrong?","es":""},"explanation":{"fr":"","en":"The entity provides a sensitivity analysis for each type of market risk, according to reasonably possible changes in the significant risk variables, with the effects on profit or loss and on equity, the methods and assumptions used and changes in them (IFRS 7, para. 40). The wrong practice replaces the assessment of what is reasonably possible with an arbitrary change. Professional judgement: the range of reasonably possible changes is assessed on the entity's facts. Trap: Using an arbitrary rate change without assessing what is reasonably possible. Rule to remember: The change tested must be reasonably possible, not arbitrary (IFRS 7, para. 40).","es":""},"common_error":{"fr":"","en":"Using an arbitrary rate change without assessing what is reasonably possible.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"For its floating-rate borrowings, the entity uses an arbitrary ten-point change, without assessing what is reasonably possible.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The entity provides a sensitivity analysis for each type of market risk to which it is exposed at the reporting date.","es":""},"correct":false,"feedback":{"fr":"","en":"This practice is correct: the sensitivity analysis is provided for each type of market risk to which the entity is exposed (IFRS 7, para. 40). It follows the text of the standard and is therefore not the wrong practice.","es":""}},{"id":"C","text":{"fr":"","en":"The entity assesses which changes in the risk variables are reasonably possible before calculating the effects of those changes.","es":""},"correct":false,"feedback":{"fr":"","en":"This practice is correct: the entity first assesses what is reasonably possible, then calculates its effects (IFRS 7, para. 40). It follows the text of the standard and is therefore not the wrong practice.","es":""}},{"id":"D","text":{"fr":"","en":"The entity states the effects of these changes on profit or loss and on equity, with the methods and assumptions used.","es":""},"correct":false,"feedback":{"fr":"","en":"This practice is correct: the analysis states the effects on profit or loss and on equity, and the methods and assumptions used (IFRS 7, para. 40). It follows the text of the standard and is therefore not the wrong practice.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS7.000043","standard_id":"IFRS7","concept_ids":["IFRS7.TRANSFERS.OBJECTIVE_AND_INVOLVEMENT"],"dimension":"APPLICATION","context":"V1_QST.IFRS7.000043","tested_point":"QST.IFRS7.000043","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000010","section_id":"rule-objective"},"references":["IFRS 7 §42C"],"exercise":{"prompt":{"fr":"","en":"Prisme SA has sold a portfolio of receivables and derecognised it. As part of the sale, it gave the buyer a first-loss guarantee covering losses up to 5% of the portfolio; it also gave the usual representations that there is no fraud (case facts). Which of these items creates continuing involvement in the transferred assets?","es":""},"explanation":{"fr":"","en":"An entity has continuing involvement in a transferred financial asset if, as part of the transfer, it retains contractual rights or obligations inherent in the transferred asset or obtains new contractual rights or obligations relating to it; certain items are excluded, such as the usual representations and warranties on fraud and forward contracts or options at fair value (IFRS 7, para. 42C). Prisme's first-loss guarantee is a new obligation relating to the receivables. Trap: Considering that the absence of full derecognition is the only situation covered by the disclosures. Rule to remember: Continuing involvement = retained or new rights or obligations relating to the asset, excluding the excluded items (IFRS 7, para. 42C).","es":""},"common_error":{"fr":"","en":"Considering that the absence of full derecognition is the only situation covered, or that any commitment given on sale is continuing involvement.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The usual no-fraud representations, which are contractual commitments inherent in the assets sold.","es":""},"correct":false,"feedback":{"fr":"","en":"The usual representations and warranties on fraud are among the items excluded from continuing involvement (IFRS 7, para. 42C). They therefore do not, by themselves, create continuing involvement in the transferred assets.","es":""}},{"id":"B","text":{"fr":"","en":"Neither: once the receivables are derecognised, the entity has no further involvement in the transferred assets.","es":""},"correct":false,"feedback":{"fr":"","en":"Derecognition does not erase continuing involvement: an entity may have derecognised the assets while retaining rights or obligations relating to them, such as the first-loss guarantee (IFRS 7, para. 42C).","es":""}},{"id":"C","text":{"fr":"","en":"Both, since any commitment given to the buyer at the time of the sale is continuing involvement.","es":""},"correct":false,"feedback":{"fr":"","en":"Not every commitment given at the time of the sale is continuing involvement: certain items, such as the usual representations and warranties on fraud, are excluded from the definition (IFRS 7, para. 42C).","es":""}},{"id":"D","text":{"fr":"","en":"The first-loss guarantee, a new contractual obligation on the transferred assets.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS7.000044","standard_id":"IFRS7","concept_ids":["IFRS7.TRANSFERS.OBJECTIVE_AND_INVOLVEMENT"],"dimension":"ANALYSIS","context":"V1_QST.IFRS7.000044","tested_point":"QST.IFRS7.000044","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000010","section_id":"rule-objective"},"references":["IFRS 7 §42B"],"exercise":{"prompt":{"fr":"","en":"A working paper describes the objective of the IFRS 7 disclosures on transfers of financial assets. Which of its sentences is wrong?","es":""},"explanation":{"fr":"","en":"The disclosures on transfers of financial assets aim to enable users to understand the relationship between transferred assets that are not derecognised in their entirety and the associated liabilities, and to assess the nature of the risks of the entity's continuing involvement in derecognised assets (IFRS 7, para. 42B). The wrong sentence forgets the derecognised assets with continuing involvement. Trap: Considering that the absence of full derecognition is the only situation covered by the disclosures. Rule to remember: Two situations covered: assets not derecognised in their entirety and continuing involvement in derecognised assets (IFRS 7, para. 42B).","es":""},"common_error":{"fr":"","en":"Considering that the absence of full derecognition is the only situation covered by the disclosures.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"They aim to enable users to understand the relationship between transferred assets not derecognised in their entirety and the associated liabilities.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: one objective is to understand the relationship between transferred assets not derecognised in their entirety and the associated liabilities (IFRS 7, para. 42B). It is not the wrong sentence.","es":""}},{"id":"B","text":{"fr":"","en":"The transfer disclosures concern only transferred assets that have not been derecognised in their entirety.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"They also aim to assess the nature of the risks of the entity's continuing involvement in derecognised assets.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: a second objective is to assess the nature of the risks of the entity's continuing involvement in derecognised assets (IFRS 7, para. 42B). It is not the wrong sentence.","es":""}},{"id":"D","text":{"fr":"","en":"They cover two situations: transferred assets not derecognised in their entirety and assets derecognised with the entity's continuing involvement.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: the disclosures cover transferred assets not derecognised in their entirety and those derecognised with continuing involvement (IFRS 7). It is not the wrong sentence.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS7.000045","standard_id":"IFRS7","concept_ids":["IFRS7.TRANSFERS.NOT_DERECOGNISED"],"dimension":"CALCULATION","context":"V1_QST.IFRS7.000045","tested_point":"QST.IFRS7.000045","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000010","section_id":"rule-notderec"},"references":["IFRS 7 §42D"],"exercise":{"prompt":{"fr":"","en":"Aube SA has transferred receivables without fully derecognising them. The transferred assets have a carrying amount of {carrying_transferred} and a fair value of {fv_transferred}; the associated liability has a carrying amount of {carrying_assoc_liab} and a fair value of {fv_assoc_liab}. The transferee's recourse is limited to the transferred assets (case facts). Calculate the net position to be disclosed where recourse is limited to the transferred assets.","es":""},"explanation":{"fr":"","en":"Method: where recourse is limited to the transferred assets, the disclosures include, in addition to the carrying amounts of the assets and associated liabilities, their fair values, hence the net position 3,400,000 − 3,150,000 = 250,000. The carrying amounts (3,500,000 and 3,200,000) are also provided, but do not enter this net position (IFRS 7, para. 42D). Trap: Presenting the associated liability without the corresponding transferred asset. Rule to remember: Recourse limited to transferred assets: net position at fair values (IFRS 7, para. 42D).","es":""},"common_error":{"fr":"","en":"Presenting the associated liability without the corresponding transferred asset, or calculating the net position on carrying amounts.","es":""},"format":"CALCULATION","placeholders":[{"id":"fv_transferred","value":"3400000","unit":"EUR"},{"id":"fv_assoc_liab","value":"3150000","unit":"EUR"},{"id":"carrying_transferred","value":"3500000","unit":"EUR"},{"id":"carrying_assoc_liab","value":"3200000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Fair value of the transferred assets","es":""},"value":"3400000","unit":"EUR"},{"label":{"fr":"","en":"Fair value of the associated liability","es":""},"value":"3150000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount of the transferred assets","es":""},"value":"3500000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount of the associated liability","es":""},"value":"3200000","unit":"EUR"}],"steps":[{"id":"NET_POSITION","label":{"fr":"","en":"Net position (fair values)","es":""},"answer":250000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"NET_POSITION","meaning":{"fr":"","en":"Net position (fair values)","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value of the transferred assets","es":""},"value":3400000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Fair value of the associated liability","es":""},"value":3150000,"unit":"EUR"}],"result":250000,"unit":"EUR"}],"rationale":{"fr":"","en":"Recourse limited to transferred assets: net position at fair values (IFRS 7, para. 42D).","es":""},"references":["REF.IFRS7.42D"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS7.000046","standard_id":"IFRS7","concept_ids":["IFRS7.TRANSFERS.DERECOGNISED_INVOLVEMENT","IFRS7.TRANSFERS.OBJECTIVE_AND_INVOLVEMENT"],"dimension":"APPLICATION","context":"V1_QST.IFRS7.000046","tested_point":"QST.IFRS7.000046","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000010","section_id":"rule-objective"},"references":["IFRS 7 §42E","IFRS 7 §42C"],"exercise":{"prompt":{"fr":"","en":"Zénith SA sold loans and derecognised them in their entirety. The contract leaves it with an option to repurchase these loans at a price set at 102% of their nominal value, different from their fair value on the day of repurchase (case facts). Is the option a continuing involvement to be documented?","es":""},"explanation":{"fr":"","en":"An entity has continuing involvement if, as part of the transfer, it retains contractual rights or obligations inherent in the transferred asset or obtains new ones relating to it; excluded items include the usual representations and warranties on fraud and forward contracts or options at fair value (IFRS 7, para. 42C); the disclosures on assets derecognised in their entirety with continuing involvement follow from this (IFRS 7, para. 42E). Zénith's option, at a price of 102% of nominal value and not at fair value, is a retained right that is not excluded. Professional judgement: the gap with fair value is assessed on the case facts. Trap: Excluding from continuing involvement a repurchase option at a price other than fair value. Rule to remember: Repurchase option at a price set otherwise than at fair value = continuing involvement (IFRS 7, paras. 42C and 42E).","es":""},"common_error":{"fr":"","en":"Excluding from continuing involvement a repurchase option at a price other than fair value.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No: any repurchase option is excluded from continuing involvement, whatever its exercise price, since the loans have been derecognised.","es":""},"correct":false,"feedback":{"fr":"","en":"Only certain items are excluded, notably the usual representations and warranties on fraud, and forward contracts or options at fair value. A repurchase option at a price set otherwise is not one of them (IFRS 7, para. 42C).","es":""}},{"id":"B","text":{"fr":"","en":"No: a repurchase option is a right relating to the transferred assets provided that the loans still appear in the statement of financial position.","es":""},"correct":false,"feedback":{"fr":"","en":"Full derecognition does not erase continuing involvement: an entity may have derecognised the loans while retaining a right relating to them, which is precisely what the paragraph on fully derecognised assets with continuing involvement targets (IFRS 7, paras. 42E and 42C).","es":""}},{"id":"C","text":{"fr":"","en":"Yes, but from the day the option is exercised; the mere faculty to repurchase creates no involvement as long as it is not exercised.","es":""},"correct":false,"feedback":{"fr":"","en":"Continuing involvement results from the rights or obligations retained as part of the transfer, from the outset; it does not arise on exercise of the option. The right is already retained at the transfer date (IFRS 7, para. 42C).","es":""}},{"id":"D","text":{"fr":"","en":"Yes: a retained contractual right relating to the transferred assets is continuing involvement; the exclusion of options at fair value does not apply to a price set at another level.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS7.000047","standard_id":"IFRS7","concept_ids":["IFRS7.INTERACTIONS.IFRS9","IFRS7.CREDIT_RISK.RISK_MANAGEMENT_PRACTICES"],"dimension":"APPLICATION","context":"V1_QST.IFRS7.000047","tested_point":"QST.IFRS7.000047","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000006","section_id":"rule-practices"},"references":["IFRS 7","IFRS 7 §35F"],"exercise":{"prompt":{"fr":"","en":"At year-end, the finance team of Banque Alcor allocates four tasks relating to its Stage 2 loans (case facts). Which of these tasks is an IFRS 7 disclosure requirement, rather than the measurement provided for by IFRS 9?","es":""},"explanation":{"fr":"","en":"Disclosures on credit risk management practices explain how they relate to the measurement of expected credit losses, including the assessment of a significant increase in credit risk and the use of the low credit risk exemption (IFRS 7, para. 35F). Measurement itself, the stages and the loss allowance fall under IFRS 9: IFRS 9 rule for measuring, IFRS 7 rule for the note. Trap: Looking in IFRS 7 for the method of measuring expected losses. Rule to remember: IFRS 9 measures, IFRS 7 explains and presents (IFRS 7, para. 35F).","es":""},"common_error":{"fr":"","en":"Looking in IFRS 7 for the method of measuring expected credit losses.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Deciding on which date the credit risk of the loans increased significantly since their initial recognition in the accounts.","es":""},"correct":false,"feedback":{"fr":"","en":"Assessing a significant increase in credit risk is a measurement decision taken under IFRS 9. IFRS 7 asks the entity to explain, in the note, how that assessment is dealt with (IFRS 7, para. 35F).","es":""}},{"id":"B","text":{"fr":"","en":"Calculating, with a probability-weighted model, the lifetime expected credit loss on the Stage 2 loans at the reporting date.","es":""},"correct":false,"feedback":{"fr":"","en":"This task is a measurement: estimating expected credit losses falls under IFRS 9, and IFRS 7 requires the corresponding disclosures (IFRS 7, para. 35F). It is not the disclosure asked for.","es":""}},{"id":"C","text":{"fr":"","en":"Drafting the note that explains how credit risk management practices relate to the measurement of expected losses.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Determining, for each loan in the portfolio, the amount of the loss allowance to be recognised at the end of the reporting period.","es":""},"correct":false,"feedback":{"fr":"","en":"Calculating the loss allowance amount is a measurement and recognition task under IFRS 9; the IFRS 7 note then describes the practices without setting that amount (IFRS 7, para. 35F).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS7.000048","standard_id":"IFRS7","concept_ids":["IFRS7.INTERACTIONS.IFRS9","IFRS7.CREDIT_RISK.RISK_MANAGEMENT_PRACTICES"],"dimension":"ANALYSIS","context":"V1_QST.IFRS7.000048","tested_point":"QST.IFRS7.000048","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000006","section_id":"rule-practices"},"references":["IFRS 7","IFRS 7 §35F"],"exercise":{"prompt":{"fr":"","en":"An analyst prepares a note on the boundary between IFRS 9 and IFRS 7 for expected credit losses. Which of his sentences is wrong?","es":""},"explanation":{"fr":"","en":"Measurement of expected credit losses, the stages and the presentation of the loss allowance fall under IFRS 9; IFRS 7 requires the corresponding disclosures, for example on credit risk management practices and how they relate to measurement (IFRS 7, para. 35F). The wrong sentence sends the reader to IFRS 7 for a measurement method. Trap: Looking in IFRS 7 for the method of measuring expected credit losses. Rule to remember: IFRS 9 measures, IFRS 7 informs (IFRS 7, para. 35F).","es":""},"common_error":{"fr":"","en":"Looking in IFRS 7 for the method of measuring expected credit losses.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"IFRS 7 asks the entity to explain how credit risk management practices relate to the measurement of expected losses.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: IFRS 7 asks the entity to explain how credit risk management practices relate to the measurement of expected losses (IFRS 7, para. 35F). It is not the wrong sentence.","es":""}},{"id":"B","text":{"fr":"","en":"The measurement of expected credit losses and the definition of the stages fall under IFRS 9, not under the IFRS 7 disclosures.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: measurement of expected losses, the stages and the loss allowance fall under IFRS 9, with IFRS 7 providing the disclosures (IFRS 7, para. 35F). It is not the wrong sentence.","es":""}},{"id":"C","text":{"fr":"","en":"To find the method for measuring expected credit losses, look in IFRS 7, which details it.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"IFRS 7 complements IFRS 9 by requiring information about the loss allowance for credit losses presented by the entity.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: IFRS 7 adds to IFRS 9 by asking for information on credit risk and its expected losses (IFRS 7, para. 35F). It follows the standard and is not the wrong sentence.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS7.000049","standard_id":"IFRS7","concept_ids":["IFRS7.INTERACTIONS.IFRS13","IFRS7.FAIR_VALUE.FAIR_VALUE_DISCLOSURES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS7.000049","tested_point":"QST.IFRS7.000049","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000004","section_id":"rule-fv"},"references":["IFRS 7","IFRS 7 §28"],"exercise":{"prompt":{"fr":"","en":"Where are the fair value hierarchy and the valuation techniques found to which the IFRS 7 fair value disclosures refer?","es":""},"explanation":{"fr":"","en":"The fair value hierarchy and valuation techniques fall under IFRS 13; IFRS 7 adds disclosures specific to financial instruments, for example in paragraph 28, which was amended when IFRS 13 was issued (IFRS 7, para. 28). Trap: Looking for the fair value hierarchy in IFRS 7. Rule to remember: Hierarchy and techniques in IFRS 13; disclosures specific to financial instruments in IFRS 7 (IFRS 7, para. 28).","es":""},"common_error":{"fr":"","en":"Looking for the fair value hierarchy in IFRS 7.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"In IFRS 7 itself, which defines the levels of the hierarchy and describes each of the valuation techniques that the entity may use.","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 7 does not define the fair value hierarchy or the valuation techniques: they fall under IFRS 13, with IFRS 7 adding only disclosures specific to financial instruments (IFRS 7, para. 28).","es":""}},{"id":"B","text":{"fr":"","en":"In IFRS 13, IFRS 7 adding disclosures specific to financial instruments, such as those in paragraph 28, without repeating the hierarchy.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"In IAS 32, which specifies how to measure at fair value the financial instruments that the entity presents in its financial statements.","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 32 deals with the presentation and classification of financial instruments, not the fair value hierarchy. The hierarchy falls under IFRS 13, to which IFRS 7 refers (IFRS 7, para. 28).","es":""}},{"id":"D","text":{"fr":"","en":"In IFRS 9, which sets the levels of the hierarchy for the financial assets that the entity subsequently measures at fair value.","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 9 deals with the classification and measurement of financial assets, but it does not set the fair value hierarchy or valuation techniques, which fall under IFRS 13 (IFRS 7, para. 28).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS7.000050","standard_id":"IFRS7","concept_ids":["IFRS7.INTERACTIONS.IFRS13","IFRS7.FAIR_VALUE.FAIR_VALUE_DISCLOSURES"],"dimension":"ANALYSIS","context":"V1_QST.IFRS7.000050","tested_point":"QST.IFRS7.000050","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000004","section_id":"rule-fv"},"references":["IFRS 7","IFRS 7 §28"],"exercise":{"prompt":{"fr":"","en":"Four employees comment on the IFRS 7 fair value disclosures. Which of their sentences is wrong?","es":""},"explanation":{"fr":"","en":"Paragraph 28 of IFRS 7 deals with the disclosures required when the initial fair value differs from the transaction price and the measurement relies on unobservable inputs; the fair value hierarchy and valuation techniques fall under IFRS 13 (IFRS 7, para. 28). The wrong sentence attributes the complete hierarchy to that paragraph. Trap: Looking for the fair value hierarchy in IFRS 7. Rule to remember: Paragraph 28 deals with an initial difference, the hierarchy is in IFRS 13 (IFRS 7, para. 28).","es":""},"common_error":{"fr":"","en":"Looking for the fair value hierarchy in IFRS 7.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Paragraph 28 of IFRS 7 contains the complete fair value hierarchy and the list of the valuation techniques that are accepted.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The fair value hierarchy and valuation techniques fall under IFRS 13, to which the IFRS 7 disclosures refer.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: the fair value hierarchy and valuation techniques fall under IFRS 13, to which IFRS 7 refers (IFRS 7, para. 28). It follows the standard and is not the wrong sentence.","es":""}},{"id":"C","text":{"fr":"","en":"IFRS 7 adds disclosures specific to financial instruments, including those that appear in paragraph 28 of the standard.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: IFRS 7 adds disclosures specific to financial instruments, for example in paragraph 28, without repeating the IFRS 13 hierarchy (IFRS 7, para. 28). It is not the wrong sentence.","es":""}},{"id":"D","text":{"fr":"","en":"Paragraph 28 deals with the case where the initial fair value differs from the transaction price and unobservable inputs are used.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: paragraph 28 deals with disclosures when the initial fair value differs from the transaction price (IFRS 7, para. 28). It is not the wrong sentence.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS7.000051","standard_id":"IFRS7","concept_ids":["IFRS7.INTERACTIONS.IAS32_IAS7","IFRS7.POSITION_PERFORMANCE.OFFSETTING_DISCLOSURES"],"dimension":"APPLICATION","context":"V1_QST.IFRS7.000051","tested_point":"QST.IFRS7.000051","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000003","section_id":"rule-scope"},"references":["IFRS 7","IFRS 7 §13A"],"exercise":{"prompt":{"fr":"","en":"Banque Orion holds derivatives with a counterparty under an enforceable master netting arrangement. It does not intend to settle net, so the IAS 32 offsetting criteria are not met and the amounts are not offset in the statement of financial position (case facts). Do these derivatives appear in the IFRS 7 offsetting disclosures?","es":""},"explanation":{"fr":"","en":"The offsetting disclosures apply to all recognised financial instruments that are offset under IAS 32, and to those subject to an enforceable master netting arrangement or similar agreement, whether or not they are offset (IFRS 7, para. 13A). IAS 32 rule for offsetting in the statement of financial position, IFRS 7 rule for the disclosure. Orion's derivatives therefore belong in the IFRS 7 table. Trap: Applying the offsetting criteria in IFRS 7. Rule to remember: IAS 32 decides offsetting; IFRS 7 also covers instruments under a master netting arrangement that are not offset (IFRS 7, para. 13A).","es":""},"common_error":{"fr":"","en":"Applying the offsetting criteria in IFRS 7.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No: those disclosures are limited to instruments actually offset under IAS 32, which these derivatives do not satisfy in the case presented.","es":""},"correct":false,"feedback":{"fr":"","en":"This reading is too narrow: the disclosures cover instruments offset under IAS 32, but also those subject to an enforceable master netting arrangement, even when not offset (IFRS 7, para. 13A).","es":""}},{"id":"B","text":{"fr":"","en":"No: as long as the IAS 32 offsetting criteria are not met, the master netting arrangement need not be mentioned in the notes.","es":""},"correct":false,"feedback":{"fr":"","en":"The lack of offsetting in the statement of financial position does not remove the disclosure: the enforceable master netting arrangement is within the scope of IFRS 7 disclosures, offset or not (IFRS 7, para. 13A).","es":""}},{"id":"C","text":{"fr":"","en":"Yes: the IFRS 7 offsetting disclosures also cover instruments subject to an enforceable master netting arrangement, whether or not they are offset.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Yes, but provided that the entity first applies the offsetting criteria within IFRS 7 to decide the net amount to be presented.","es":""},"correct":false,"feedback":{"fr":"","en":"The offsetting criteria belong to IAS 32, not IFRS 7: IFRS 7 adds only disclosures, without setting the conditions for presenting a net amount (IFRS 7, para. 13A).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS7.000052","standard_id":"IFRS7","concept_ids":["IFRS7.INTERACTIONS.AMENDMENTS","IFRS7.LIQUIDITY_MARKET.SUPPLIER_FINANCE_CONCENTRATION"],"dimension":"APPLICATION","context":"V1_QST.IFRS7.000052","tested_point":"QST.IFRS7.000052","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000008","section_id":"rule-supplier"},"references":["IFRS 7","IFRS 7 §B11F"],"exercise":{"prompt":{"fr":"","en":"Société Vega closes a reporting period beginning on 1 January 2025 and does not early apply any amendment (case facts). It has supplier finance arrangements. Of the 2023 IFRS 7 amendments (supplier finance) and the 2024 ones (classification and measurement), which apply to this period?","es":""},"explanation":{"fr":"","en":"The 2023 amendments on supplier finance arrangements apply to annual periods beginning on or after 1 January 2024; the 2024 ones on classification and measurement, to periods beginning on or after 1 January 2026, with early application permitted in both cases. On the IFRS 7 side, access to these arrangements is among the factors in describing liquidity risk management (IFRS 7, para. B11F). For a period beginning on 1 January 2025 without early application, only the 2023 amendments apply. Trap: Applying the 2024 amendments to a period beginning before 1 January 2026 without early application. Rule to remember: Each amendment has its own application date; check the period before applying it (2023 and 2024 IFRS 7 amendments).","es":""},"common_error":{"fr":"","en":"Applying the 2024 amendments to a period beginning before 1 January 2026 without early application.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Both the 2023 amendments and the 2024 amendments apply, since they were published before the end of the company's reporting period.","es":""},"correct":false,"feedback":{"fr":"","en":"The publication date does not decide application: each set of amendments has its own effective date. The 2024 ones cover periods beginning on or after 1 January 2026 (2024 IFRS 7 amendments).","es":""}},{"id":"B","text":{"fr":"","en":"The 2023 amendments apply, as they cover periods beginning on or after 1 January 2024; the 2024 ones cover periods beginning on or after 1 January 2026.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The 2024 amendments apply and replace the 2023 ones, since the most recent amendment prevails over the older one.","es":""},"correct":false,"feedback":{"fr":"","en":"A more recent amendment does not replace the earlier one: the two sets deal with distinct subjects and each has its own application date, supplier finance falling under the 2023 ones (2023 IFRS 7 amendments).","es":""}},{"id":"D","text":{"fr":"","en":"Neither the 2023 nor the 2024 amendments apply, as long as the entity has not decided to apply them early.","es":""},"correct":false,"feedback":{"fr":"","en":"Application of the amendments does not depend on a decision of the company: the 2023 ones are mandatory from periods beginning on 1 January 2024, early application being merely an option before that date (2023 IFRS 7 amendments).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS7.000053","standard_id":"IFRS7","concept_ids":["IFRS7.INTERACTIONS.IFRS18","IFRS7.SCOPE.OBJECTIVE"],"dimension":"ANALYSIS","context":"V1_QST.IFRS7.000053","tested_point":"QST.IFRS7.000053","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000001","section_id":"rule-objective"},"references":["IFRS 7","IFRS 7 §1"],"exercise":{"prompt":{"fr":"","en":"A consolidation manager prepares notes on the effect of IFRS 18 on IFRS 7 for a period beginning on 1 January 2026, without early application. Which of his sentences is wrong?","es":""},"explanation":{"fr":"","en":"IFRS 18 applies to annual periods beginning on or after 1 January 2027, with early application permitted, and amends several standards by consequence. For a period beginning on 1 January 2026 without early application, the current text of IFRS 7 therefore applies, with the objective in its paragraph 1 (IFRS 7, para. 1). Trap: Presenting an IFRS 18 consequential amendment as already applicable. Rule to remember: Before 1 January 2027, without early application, the current text of IFRS 7 applies (IFRS 7, para. 1).","es":""},"common_error":{"fr":"","en":"Presenting an IFRS 18 consequential amendment as already applicable.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"IFRS 18 applies to annual periods beginning on or after 1 January 2027, with early application permitted by the standard.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: IFRS 18 applies to periods beginning on or after 1 January 2027 and early application is permitted. It follows the standard and is not the wrong sentence.","es":""}},{"id":"B","text":{"fr":"","en":"IFRS 18 amends several standards by consequence; the detail of the amendments to IFRS 7 is read in the text of those amendments.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: IFRS 18 amends several standards by consequence, the detail of the IFRS 7 amendments being read in the text of those amendments themselves. It is not the wrong sentence.","es":""}},{"id":"C","text":{"fr":"","en":"For this period, the objective of IFRS 7 set out in paragraph 1 applies under the current text of the standard, unamended.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: without early application, the 2026 period remains governed by the current text of IFRS 7, including the objective in paragraph 1 (IFRS 7, para. 1). It is not the wrong sentence.","es":""}},{"id":"D","text":{"fr":"","en":"The consequential amendments of IFRS 18 to IFRS 7 are already applicable to the period beginning on 1 January 2026.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS7.000054","standard_id":"IFRS7","concept_ids":["IFRS7.POSITION_PERFORMANCE.OFFSETTING_DISCLOSURES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS7.000054","tested_point":"QST.IFRS7.000054","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000003","section_id":"rule-scope"},"references":["IFRS 7 §13B"],"exercise":{"prompt":{"fr":"","en":"What is the objective of the IFRS 7 disclosures on the offsetting of financial assets and financial liabilities?","es":""},"explanation":{"fr":"","en":"These disclosures enable users to evaluate the effect, or potential effect, of netting arrangements on the entity's financial position, including the effect of rights of set-off associated with recognised financial assets and financial liabilities (IFRS 7, para. 13B). Trap: limiting the information to amounts actually offset, whereas the potential effect is targeted. Rule to remember: effect and potential effect of netting arrangements.","es":""},"common_error":{"fr":"","en":"Limiting the information to the amounts actually offset.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"To justify presenting all financial assets and financial liabilities with the same counterparty at their net amount.","es":""},"correct":false,"feedback":{"fr":"","en":"The disclosures do not justify a net presentation: they shed light on the effect of netting arrangements on the financial position (IFRS 7, para. 13B).","es":""}},{"id":"B","text":{"fr":"","en":"To describe only the offsetting actually applied in the statement of financial position, without regard to rights not exercised.","es":""},"correct":false,"feedback":{"fr":"","en":"The objective also covers the potential effect of netting arrangements, beyond the offsetting actually applied (IFRS 7, para. 13B).","es":""}},{"id":"C","text":{"fr":"","en":"To enable users to evaluate the effect, or potential effect, of netting arrangements on the financial position.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"To disclose the fair value of collateral received, regardless of any netting arrangement.","es":""},"correct":false,"feedback":{"fr":"","en":"The objective concerns the effect of netting arrangements, not collateral taken in isolation (IFRS 7, para. 13B).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS7.000055","standard_id":"IFRS7","concept_ids":["IFRS7.FAIR_VALUE.FAIR_VALUE_DISCLOSURES"],"dimension":"APPLICATION","context":"V1_QST.IFRS7.000055","tested_point":"QST.IFRS7.000055","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000004","section_id":"rule-fv"},"references":["IFRS 7 §25"],"exercise":{"prompt":{"fr":"","en":"Mira SA holds a portfolio of loans measured at amortised cost, which form a class of financial assets; none of the exemptions provided by the Standard applies to this class (case data). What does IFRS 7 require about the fair value of this class?","es":""},"explanation":{"fr":"","en":"Except as set out in para. 29, the entity discloses, for each class of financial assets and financial liabilities, the fair value of that class in a way that permits it to be compared with its carrying amount; the requirement therefore also applies to instruments measured at amortised cost (IFRS 7, para. 25). The absence of an exemption is case data. Trap: reserving the disclosure for instruments measured at fair value. Rule to remember: fair value by class, comparable with the carrying amount, unless para. 29 exempts.","es":""},"common_error":{"fr":"","en":"Omitting the fair value of instruments measured at amortised cost.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Nothing: fair value is disclosed only for instruments measured at fair value.","es":""},"correct":false,"feedback":{"fr":"","en":"The requirement covers each class of financial assets and financial liabilities, including those measured at amortised cost (IFRS 7, para. 25).","es":""}},{"id":"B","text":{"fr":"","en":"Disclose it in a way that permits it to be compared with the carrying amount of the class.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Disclose it only for the impaired loans of the class.","es":""},"correct":false,"feedback":{"fr":"","en":"The disclosure covers the whole class, not only its impaired loans (IFRS 7, para. 25).","es":""}},{"id":"D","text":{"fr":"","en":"Nothing: for amortised cost, fair value information remains optional.","es":""},"correct":false,"feedback":{"fr":"","en":"The disclosure is not optional: only the cases in para. 29 exempt from it, and none applies here (IFRS 7, para. 25).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS7.000056","standard_id":"IFRS7","concept_ids":["IFRS7.CREDIT_RISK.COLLATERAL_MAX_EXPOSURE"],"dimension":"APPLICATION","context":"V1_QST.IFRS7.000056","tested_point":"QST.IFRS7.000056","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":110,"lesson_id":null,"review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000007","section_id":"rule-collateral"},"references":["IFRS 7 §36"],"exercise":{"prompt":{"fr":"","en":"Nereid SA holds a bond measured at fair value through profit or loss, an instrument within the scope of IFRS 7 but not subject to the impairment requirements of IFRS 9; its carrying amount, 2,000,000, represents its maximum exposure to credit risk at the reporting date. The bond is secured by a pledge of 1,500,000 (case data). What does Nereid disclose?","es":""},"explanation":{"fr":"","en":"For financial instruments within the scope of the Standard but not subject to the impairment requirements of IFRS 9, the entity discloses by class the amount that best represents its maximum exposure to credit risk at the end of the reporting period, without taking account of collateral or other credit enhancements, together with a description of the collateral and credit enhancements and their financial effect (IFRS 7, para. 36). The carrying amount here represents the maximum exposure (case data): 2,000,000, and the pledge of 1,500,000 is described separately. Trap: deducting the collateral from the exposure. Rule to remember: maximum exposure before collateral, collateral described separately.","es":""},"common_error":{"fr":"","en":"Disclosing a credit risk exposure net of the collateral held.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"An exposure of 500,000, net of the pledge, with no other information.","es":""},"correct":false,"feedback":{"fr":"","en":"The maximum exposure is disclosed without taking account of collateral; the pledge is described separately with its financial effect (IFRS 7, para. 36).","es":""}},{"id":"B","text":{"fr":"","en":"A maximum exposure of 2,000,000, without deducting the pledge, and a description of the pledge and its financial effect.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"An exposure of 1,500,000, equal to the pledge received.","es":""},"correct":false,"feedback":{"fr":"","en":"The amount of the pledge is not the exposure: the maximum exposure is that of the bond, 2,000,000 (IFRS 7, para. 36).","es":""}},{"id":"D","text":{"fr":"","en":"No credit risk information, since the bond is measured at fair value.","es":""},"correct":false,"feedback":{"fr":"","en":"The disclosure is aimed precisely at instruments within the Standard that are not subject to IFRS 9 impairment, such as this bond (IFRS 7, para. 36).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS7.000057","standard_id":"IFRS7","concept_ids":["IFRS7.TRANSFERS.OBJECTIVE_AND_INVOLVEMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS7.000057","tested_point":"QST.IFRS7.000057","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":110,"lesson_id":null,"review":{"standard_id":"IFRS7","lesson_id":"LS.IFRS7.000010","section_id":"rule-objective"},"references":["IFRS 7 §42A"],"exercise":{"prompt":{"fr":"","en":"Which statements about the IFRS 7 disclosures on transfers of financial assets are correct? (Several answers.)","es":""},"explanation":{"fr":"","en":"The disclosures about transfers supplement the other disclosures of the Standard and are presented in a single note; they cover all transferred financial assets that are not derecognised and any continuing involvement existing at the reporting date, irrespective of when the transfer occurred; an entity transfers an asset if it transfers the contractual rights to receive its cash flows, or retains them but assumes a contractual obligation to pay those cash flows to third parties (IFRS 7, para. 42A). Trap: limiting the disclosure to transfers of the period or to the transfer of rights alone. Rule to remember: single note, assets not derecognised and continuing involvement at the reporting date, whenever the transfer occurred.","es":""},"common_error":{"fr":"","en":"Presenting only the transfers made during the period.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"They cover only transfers made during the period.","es":""},"correct":false,"feedback":{"fr":"","en":"The disclosures cover the assets and continuing involvement existing at the reporting date, irrespective of when the transfer occurred (IFRS 7, para. 42A).","es":""}},{"id":"B","text":{"fr":"","en":"They are presented in a single note to the financial statements.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"They cover transferred assets that are not derecognised and any continuing involvement existing at the reporting date.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Retaining the rights to an asset's cash flows while undertaking to pass them on to third parties is never a transfer.","es":""},"correct":false,"feedback":{"fr":"","en":"There is also a transfer when the entity retains the rights to the cash flows but undertakes to pay them to third parties (IFRS 7, para. 42A).","es":""}},{"id":"E","text":{"fr":"","en":"They replace the other disclosures of the Standard for the assets concerned.","es":""},"correct":false,"feedback":{"fr":"","en":"These disclosures supplement the other disclosures of the Standard; they do not replace them (IFRS 7, para. 42A).","es":""}}]},"scope":"CORE_STUDENT"}],"reviewTitles":{"LX.IFRS7.000001":"What IFRS 7 disclosures are for: objective and classes of instruments — The rule: two objectives, two families of notes","LX.IFRS7.000002":"What IFRS 7 disclosures are for: objective and classes of instruments — The rule: two objectives, two families of notes","LX.IFRS7.000003":"What IFRS 7 disclosures are for: objective and classes of instruments — Understand: what is IFRS 7 for?","LX.IFRS7.000004":"What IFRS 7 disclosures are for: objective and classes of instruments — The rule: two objectives, two families of notes","LX.IFRS7.000005":"What IFRS 7 disclosures are for: objective and classes of instruments — The rule: grouping instruments into classes","LX.IFRS7.000006":"What IFRS 7 disclosures are for: objective and classes of instruments — The rule: grouping instruments into classes","LX.IFRS7.000007":"What IFRS 7 disclosures are for: objective and classes of instruments — Professional judgement: how many classes, and which ones?","LX.IFRS7.000008":"Importance of instruments: amounts by category, income and expense, reclassification — The rule: a table by category, which ties to the balance sheet","LX.IFRS7.000009":"Importance of instruments: amounts by category, income and expense, reclassification — The rule: a table by category, which ties to the balance sheet","LX.IFRS7.000010":"Importance of instruments: amounts by category, income and expense, reclassification — Income, expense, gains and losses: what the note adds","LX.IFRS7.000011":"Importance of instruments: amounts by category, income and expense, reclassification — Numeric example: not counting a fee twice","LX.IFRS7.000012":"Importance of instruments: amounts by category, income and expense, reclassification — Reclassification: IFRS 9 decides, IFRS 7 asks for an explanation","LX.IFRS7.000013":"Importance of instruments: amounts by category, income and expense, reclassification — Reclassification: IFRS 9 decides, IFRS 7 asks for an explanation","LX.IFRS7.000014":"Importance of instruments: amounts by category, income and expense, reclassification — Numeric example: not counting a fee twice","LX.IFRS7.000015":"Offsetting: the table from gross to net — The rule: which instruments enter the table?","LX.IFRS7.000016":"Offsetting: the table from gross to net — Numeric example: two counterparties, one cap","LX.IFRS7.000017":"Offsetting: the table from gross to net — The rule: from gross to the net amount, column by column","LX.IFRS7.000018":"Offsetting: the table from gross to net — The rule: from gross to the net amount, column by column","LX.IFRS7.000019":"Fair value and hedging: what IFRS 7 adds, what other standards decide — Example: the initial difference and the fair value to provide at Orlane SA","LX.IFRS7.000020":"Fair value and hedging: what IFRS 7 adds, what other standards decide — Fair value: initial difference and carrying amount close to fair value","LX.IFRS7.000021":"Fair value and hedging: what IFRS 7 adds, what other standards decide — Example: the initial difference and the fair value to provide at Orlane SA","LX.IFRS7.000022":"Fair value and hedging: what IFRS 7 adds, what other standards decide — The link with IFRS 13: who defines fair value?","LX.IFRS7.000023":"Fair value and hedging: what IFRS 7 adds, what other standards decide — The link with IFRS 13: who defines fair value?","LX.IFRS7.000024":"Fair value and hedging: what IFRS 7 adds, what other standards decide — Hedging: an overview of the scope of the disclosures","LX.IFRS7.000025":"Fair value and hedging: what IFRS 7 adds, what other standards decide — Hedging: an overview of the scope of the disclosures","LX.IFRS7.000026":"Risks: nature, extent, qualitative and quantitative information — Understand: which risks are we talking about?","LX.IFRS7.000027":"Risks: nature, extent, qualitative and quantitative information — Understand: which risks are we talking about?","LX.IFRS7.000028":"Risks: nature, extent, qualitative and quantitative information — The rule: figures on the exposure and its concentrations","LX.IFRS7.000029":"Risks: nature, extent, qualitative and quantitative information — The rule: qualitative information for each type of risk","LX.IFRS7.000030":"Risks: nature, extent, qualitative and quantitative information — The rule: figures on the exposure and its concentrations","LX.IFRS7.000031":"Risks: nature, extent, qualitative and quantitative information — Example: spotting a concentration at Tavelin SA","LX.IFRS7.000032":"Risks: nature, extent, qualitative and quantitative information — The rule: figures on the exposure and its concentrations","LX.IFRS7.000033":"Risks: nature, extent, qualitative and quantitative information — Example: spotting a concentration at Tavelin SA","LX.IFRS7.000034":"Credit risk (1): management practices and exposure by rating grade — The rule: linking practices to the measurement of expected losses","LX.IFRS7.000035":"Credit risk (1): management practices and exposure by rating grade — The rule: linking practices to the measurement of expected losses","LX.IFRS7.000036":"Credit risk (1): management practices and exposure by rating grade — The rule: linking practices to the measurement of expected losses","LX.IFRS7.000037":"Credit risk (1): management practices and exposure by rating grade — The rule: gross carrying amount by credit risk rating grade","LX.IFRS7.000038":"Credit risk (1): management practices and exposure by rating grade — Numeric example: Peyrel SA's table and its check","LX.IFRS7.000039":"Credit risk (1): management practices and exposure by rating grade — Numeric example: Peyrel SA's table and its check","LX.IFRS7.000040":"Credit risk (1): management practices and exposure by rating grade — The border with IFRS 9: who decides what?","LX.IFRS7.000041":"Credit risk (1): management practices and exposure by rating grade — The border with IFRS 9: who decides what?","LX.IFRS7.000042":"Credit risk (2): loss allowance reconciliation, maximum exposure and collateral — The rule: from opening to closing, movement by movement","LX.IFRS7.000043":"Credit risk (2): loss allowance reconciliation, maximum exposure and collateral — Numeric example: Sorvane SA's reconciliation","LX.IFRS7.000044":"Credit risk (2): loss allowance reconciliation, maximum exposure and collateral — Numeric example: Sorvane SA's reconciliation","LX.IFRS7.000045":"Credit risk (2): loss allowance reconciliation, maximum exposure and collateral — The entries that feed the reconciliation","LX.IFRS7.000046":"Credit risk (2): loss allowance reconciliation, maximum exposure and collateral — The rule: from opening to closing, movement by movement","LX.IFRS7.000047":"Credit risk (2): loss allowance reconciliation, maximum exposure and collateral — The rule: maximum exposure is given before collateral","LX.IFRS7.000048":"Credit risk (2): loss allowance reconciliation, maximum exposure and collateral — Numeric example: the remaining exposure, with a cap","LX.IFRS7.000049":"Liquidity risk: maturity analysis and supplier finance — The amounts: undiscounted contractual cash flows","LX.IFRS7.000050":"Liquidity risk: maturity analysis and supplier finance — Numeric example: Kelmar SA's maturity analysis","LX.IFRS7.000051":"Liquidity risk: maturity analysis and supplier finance — The rule: a maturity analysis and a description of management","LX.IFRS7.000052":"Liquidity risk: maturity analysis and supplier finance — The rule: a maturity analysis and a description of management","LX.IFRS7.000053":"Liquidity risk: maturity analysis and supplier finance — Example: Orvane SA's liabilities with a bank","LX.IFRS7.000054":"Liquidity risk: maturity analysis and supplier finance — Supplier finance: a liquidity risk concentration","LX.IFRS7.000055":"Liquidity risk: maturity analysis and supplier finance — The rule: a maturity analysis and a description of management","LX.IFRS7.000056":"Market risk: the sensitivity analysis — The rule: effect on profit or loss and equity, methods and assumptions","LX.IFRS7.000057":"Market risk: the sensitivity analysis — Numeric example: the effect of a rate change and a price change","LX.IFRS7.000058":"Market risk: the sensitivity analysis — The rule: effect on profit or loss and equity, methods and assumptions","LX.IFRS7.000059":"Market risk: the sensitivity analysis — The rule: effect on profit or loss and equity, methods and assumptions","LX.IFRS7.000060":"Transfers of financial assets: objective, continuing involvement and tables — The rule: the objective of the disclosures and the single note","LX.IFRS7.000061":"Transfers of financial assets: objective, continuing involvement and tables — Continuing involvement: what characterises it?","LX.IFRS7.000062":"Transfers of financial assets: objective, continuing involvement and tables — The rule: the objective of the disclosures and the single note","LX.IFRS7.000063":"Transfers of financial assets: objective, continuing involvement and tables — Numeric example: Verdal SA's factoring","LX.IFRS7.000064":"Transfers of financial assets: objective, continuing involvement and tables — Transferred assets not fully derecognised: asset, associated liability, net position","LX.IFRS7.000065":"Transfers of financial assets: objective, continuing involvement and tables — Derecognised assets with continuing involvement: what the note quantifies","LX.IFRS7.000066":"Transfers of financial assets: objective, continuing involvement and tables — Numeric example: the guarantee kept by Verdal SA","LX.IFRS7.000067":"Transfers of financial assets: objective, continuing involvement and tables — Professional judgement: is there continuing involvement?","LX.IFRS7.000068":"At the borders: IAS 32, IAS 7, recent amendments and IFRS 18 — IAS 32 and IAS 7: two borders to hold","LX.IFRS7.000069":"At the borders: IAS 32, IAS 7, recent amendments and IFRS 18 — IAS 32 and IAS 7: two borders to hold","LX.IFRS7.000070":"At the borders: IAS 32, IAS 7, recent amendments and IFRS 18 — Recent amendments: dates and early application","LX.IFRS7.000071":"At the borders: IAS 32, IAS 7, recent amendments and IFRS 18 — Recent amendments: dates and early application","LX.IFRS7.000072":"At the borders: IAS 32, IAS 7, recent amendments and IFRS 18 — IFRS 18: forthcoming amendments to IFRS 7","QST.IFRS7.000001":"What IFRS 7 disclosures are for: objective and classes of instruments — The rule: two objectives, two families of notes","QST.IFRS7.000002":"What IFRS 7 disclosures are for: objective and classes of instruments — The rule: two objectives, two families of notes","QST.IFRS7.000003":"What IFRS 7 disclosures are for: objective and classes of instruments — The rule: two objectives, two families of notes","QST.IFRS7.000004":"What IFRS 7 disclosures are for: objective and classes of instruments — The rule: grouping instruments into classes","QST.IFRS7.000005":"What IFRS 7 disclosures are for: objective and classes of instruments — The rule: grouping instruments into classes","QST.IFRS7.000006":"What IFRS 7 disclosures are for: objective and classes of instruments — The rule: grouping instruments into classes","QST.IFRS7.000007":"Importance of instruments: amounts by category, income and expense, reclassification — The rule: a table by category, which ties to the balance sheet","QST.IFRS7.000008":"Importance of instruments: amounts by category, income and expense, reclassification — The rule: a table by category, which ties to the balance sheet","QST.IFRS7.000009":"Importance of instruments: amounts by category, income and expense, reclassification — The rule: a table by category, which ties to the balance sheet","QST.IFRS7.000010":"Offsetting: the table from gross to net — The rule: which instruments enter the table?","QST.IFRS7.000011":"Offsetting: the table from gross to net — The rule: which instruments enter the table?","QST.IFRS7.000012":"Importance of instruments: amounts by category, income and expense, reclassification — Income, expense, gains and losses: what the note adds","QST.IFRS7.000013":"Importance of instruments: amounts by category, income and expense, reclassification — Income, expense, gains and losses: what the note adds","QST.IFRS7.000014":"Importance of instruments: amounts by category, income and expense, reclassification — Reclassification: IFRS 9 decides, IFRS 7 asks for an explanation","QST.IFRS7.000015":"Fair value and hedging: what IFRS 7 adds, what other standards decide — Hedging: an overview of the scope of the disclosures","QST.IFRS7.000016":"Fair value and hedging: what IFRS 7 adds, what other standards decide — Fair value: initial difference and carrying amount close to fair value","QST.IFRS7.000017":"Fair value and hedging: what IFRS 7 adds, what other standards decide — Fair value: initial difference and carrying amount close to fair value","QST.IFRS7.000018":"Risks: nature, extent, qualitative and quantitative information — Understand: which risks are we talking about?","QST.IFRS7.000019":"Risks: nature, extent, qualitative and quantitative information — Understand: which risks are we talking about?","QST.IFRS7.000020":"Risks: nature, extent, qualitative and quantitative information — Understand: which risks are we talking about?","QST.IFRS7.000021":"Risks: nature, extent, qualitative and quantitative information — The rule: qualitative information for each type of risk","QST.IFRS7.000022":"Risks: nature, extent, qualitative and quantitative information — The rule: qualitative information for each type of risk","QST.IFRS7.000023":"Risks: nature, extent, qualitative and quantitative information — The rule: qualitative information for each type of risk","QST.IFRS7.000024":"Risks: nature, extent, qualitative and quantitative information — The rule: figures on the exposure and its concentrations","QST.IFRS7.000025":"Risks: nature, extent, qualitative and quantitative information — The rule: figures on the exposure and its concentrations","QST.IFRS7.000028":"Credit risk (1): management practices and exposure by rating grade — The rule: gross carrying amount by credit risk rating grade","QST.IFRS7.000029":"Credit risk (1): management practices and exposure by rating grade — The rule: gross carrying amount by credit risk rating grade","QST.IFRS7.000030":"Credit risk (1): management practices and exposure by rating grade — The rule: gross carrying amount by credit risk rating grade","QST.IFRS7.000031":"Credit risk (2): loss allowance reconciliation, maximum exposure and collateral — The rule: from opening to closing, movement by movement","QST.IFRS7.000033":"Credit risk (2): loss allowance reconciliation, maximum exposure and collateral — The rule: from opening to closing, movement by movement","QST.IFRS7.000034":"Credit risk (2): loss allowance reconciliation, maximum exposure and collateral — The rule: maximum exposure is given before collateral","QST.IFRS7.000035":"Credit risk (2): loss allowance reconciliation, maximum exposure and collateral — The rule: maximum exposure is given before collateral","QST.IFRS7.000036":"Liquidity risk: maturity analysis and supplier finance — The rule: a maturity analysis and a description of management","QST.IFRS7.000037":"Liquidity risk: maturity analysis and supplier finance — The rule: a maturity analysis and a description of management","QST.IFRS7.000039":"Liquidity risk: maturity analysis and supplier finance — Supplier finance: a liquidity risk concentration","QST.IFRS7.000040":"Market risk: the sensitivity analysis — The rule: effect on profit or loss and equity, methods and assumptions","QST.IFRS7.000041":"Market risk: the sensitivity analysis — The rule: effect on profit or loss and equity, methods and assumptions","QST.IFRS7.000042":"Market risk: the sensitivity analysis — The rule: effect on profit or loss and equity, methods and assumptions","QST.IFRS7.000043":"Transfers of financial assets: objective, continuing involvement and tables — The rule: the objective of the disclosures and the single note","QST.IFRS7.000044":"Transfers of financial assets: objective, continuing involvement and tables — The rule: the objective of the disclosures and the single note","QST.IFRS7.000045":"Transfers of financial assets: objective, continuing involvement and tables — Transferred assets not fully derecognised: asset, associated liability, net position","QST.IFRS7.000046":"Transfers of financial assets: objective, continuing involvement and tables — The rule: the objective of the disclosures and the single note","QST.IFRS7.000047":"Credit risk (1): management practices and exposure by rating grade — The rule: linking practices to the measurement of expected losses","QST.IFRS7.000048":"Credit risk (1): management practices and exposure by rating grade — The rule: linking practices to the measurement of expected losses","QST.IFRS7.000049":"Fair value and hedging: what IFRS 7 adds, what other standards decide — Fair value: initial difference and carrying amount close to fair value","QST.IFRS7.000050":"Fair value and hedging: what IFRS 7 adds, what other standards decide — Fair value: initial difference and carrying amount close to fair value","QST.IFRS7.000051":"Offsetting: the table from gross to net — The rule: which instruments enter the table?","QST.IFRS7.000052":"Liquidity risk: maturity analysis and supplier finance — Supplier finance: a liquidity risk concentration","QST.IFRS7.000053":"What IFRS 7 disclosures are for: objective and classes of instruments — The rule: two objectives, two families of notes","QST.IFRS7.000054":"Offsetting: the table from gross to net — The rule: which instruments enter the table?","QST.IFRS7.000055":"Fair value and hedging: what IFRS 7 adds, what other standards decide — Fair value: initial difference and carrying amount close to fair value","QST.IFRS7.000056":"Credit risk (2): loss allowance reconciliation, maximum exposure and collateral — The rule: maximum exposure is given before collateral","QST.IFRS7.000057":"Transfers of financial assets: objective, continuing involvement and tables — The rule: the objective of the disclosures and the single note"}}