{"entries":[{"key":"LX.IFRS9.000001","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.SCOPE.OVERVIEW"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"RETAIL","tested_point":"SCOPE_ROUTING","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IFRS9.000001","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000001","section_id":"rule-scope"},"references":["IFRS 9 §2.1"],"exercise":{"prompt":{"fr":"","en":"The Brasco chain sells on credit and holds a €40,000 receivable from a customer. It also leases its stores. Which item falls under IFRS 9?","es":""},"explanation":{"fr":"","en":"Rule to remember: a trade receivable is a right to receive cash, so within IFRS 9; leases, subsidiaries and insurance are excluded (IFRS 9, para. 2.1).","es":""},"common_error":{"fr":"","en":"Routing every receivable or payable to another standard.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The rights and obligations under the store lease contracts","es":""},"correct":false,"feedback":{"fr":"","en":"Leases fall under IFRS 16 and are excluded from scope (IFRS 9, para. 2.1).","es":""}},{"id":"B","text":{"fr":"","en":"The shares of the logistics subsidiary consolidated by the chain","es":""},"correct":false,"feedback":{"fr":"","en":"An interest in a subsidiary falls under IFRS 10 or IAS 27, not IFRS 9 (IFRS 9, para. 2.1).","es":""}},{"id":"C","text":{"fr":"","en":"An insurance contract issued by the chain to its own customers, for the needs of its business","es":""},"correct":false,"feedback":{"fr":"","en":"Rights and obligations under insurance contracts fall under IFRS 17 (IFRS 9, para. 2.1).","es":""}},{"id":"D","text":{"fr":"","en":"The €40,000 customer receivable, a right to receive cash","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000002","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.SCOPE.OVERVIEW"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"REAL_ESTATE","tested_point":"LEASE_EMBEDDED_DERIVATIVE","difficulty":"BEGINNER","estimated_time_s":35,"lesson_id":"LS.IFRS9.000001","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000001","section_id":"rule-scope"},"references":["IFRS 9 §2.1"],"exercise":{"prompt":{"fr":"","en":"A derivative embedded in a lease stays within the scope of IFRS 9, even though the lease rights and obligations fall under IFRS 16.","es":""},"explanation":{"fr":"","en":"Rule to remember: lease rights and obligations are excluded, but derivatives embedded in a lease stay in scope (IFRS 9, para. 2.1).","es":""},"common_error":{"fr":"","en":"Extending the lease exclusion to everything the contract contains.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000003","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.SCOPE.OVERVIEW"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"INSURANCE","tested_point":"SCOPE_CLASSIFICATION","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS9.000001","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000001","section_id":"example"},"references":["IFRS 9 §2.1"],"exercise":{"prompt":{"fr":"","en":"Classify each Zendal group item according to the standard that governs it.","es":""},"explanation":{"fr":"","en":"Rule to remember: debts, deposits and derivatives are within IFRS 9; interests in associates, leases and insurance contracts are excluded (IFRS 9, para. 2.1).","es":""},"common_error":{"fr":"","en":"Excluding a deposit or a derivative because it is not a loan.","es":""},"format":"CLASSIFICATION","categories":[{"id":"IFRS9","text":{"fr":"","en":"Within IFRS 9","es":""}},{"id":"OTHER","text":{"fr":"","en":"Outside IFRS 9","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Bonds issued by Zendal to raise funds","es":""},"category":"IFRS9"},{"id":"I2","text":{"fr":"","en":"30% interest in an associate","es":""},"category":"OTHER"},{"id":"I3","text":{"fr":"","en":"Head-office lease taken by Zendal","es":""},"category":"OTHER"},{"id":"I4","text":{"fr":"","en":"Term deposit placed with a bank","es":""},"category":"IFRS9"},{"id":"I5","text":{"fr":"","en":"Life insurance contract issued by the insurance subsidiary","es":""},"category":"OTHER"},{"id":"I6","text":{"fr":"","en":"Currency call option held by Zendal","es":""},"category":"IFRS9"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000004","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.SCOPE.LOAN_COMMITMENTS"],"dimension":"APPLICATION","format":"MINI_CASE","context":"BANKING","tested_point":"LOAN_COMMITMENT_SCOPE","difficulty":"INTERMEDIATE","estimated_time_s":180,"lesson_id":"LS.IFRS9.000001","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000001","section_id":"rule-commitments"},"references":["IFRS 9 §2.3"],"exercise":{"prompt":{"fr":"","en":"Analyse the position of Orvale bank.","es":""},"explanation":{"fr":"","en":"Orvale's commitment is outside scope, but IFRS 9 impairment applies to it; it would come in if granted at a below-market rate (IFRS 9).","es":""},"common_error":{"fr":"","en":"Reasoning on the amount or the absence of drawings.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Orvale bank promised a company a credit line of €2,000,000, drawable in one or several instalments, at the market rate on the signing date. The contract provides for no net settlement and the bank has not designated the commitment at fair value through profit or loss.","es":""},"parts":[{"prompt":{"fr":"","en":"Is this loan commitment within the scope of IFRS 9?","es":""},"explanation":{"fr":"","en":"Rule to remember: the commitment stays outside scope unless designated at fair value through profit or loss, net-settleable or at a below-market rate (IFRS 9).","es":""},"common_error":{"fr":"","en":"Seeing every commitment as an instrument measured by IFRS 9.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No, none of the three inclusion cases is met: the commitment is out of scope","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Yes, since a loan commitment is a financial instrument of the issuing bank","es":""},"correct":false,"feedback":{"fr":"","en":"Loan commitments are in principle excluded; they come in only in three cases, none of which applies here (IFRS 9).","es":""}},{"id":"C","text":{"fr":"","en":"Yes, because its amount exceeds one million euros","es":""},"correct":false,"feedback":{"fr":"","en":"No amount threshold plays a part in delimiting the scope (IFRS 9).","es":""}},{"id":"D","text":{"fr":"","en":"No, because an undrawn commitment need not be tracked by the bank in its accounts","es":""},"correct":false,"feedback":{"fr":"","en":"Out of scope does not mean no treatment: the bank applies the impairment requirements (IFRS 9, para. 2.1).","es":""}}],"id":"p1","dimension":"APPLICATION"},{"prompt":{"fr":"","en":"If the commitment were granted at a below-market rate, it would come within the scope of IFRS 9.","es":""},"explanation":{"fr":"","en":"Rule to remember: a loan commitment at a below-market rate stays in scope (IFRS 9).","es":""},"common_error":{"fr":"","en":"Believing the rate has no bearing on scope.","es":""},"format":"TRUE_FALSE","answer":true,"id":"p2","dimension":"RULE_KNOWLEDGE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000005","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.DEFINITIONS.HELD_FOR_TRADING"],"dimension":"RECOGNITION","format":"ERROR_SPOT","context":"BANKING","tested_point":"HELD_FOR_TRADING_PORTFOLIO","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS9.000001","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000001","section_id":"rule-hft"},"references":["IFRS 9"],"exercise":{"prompt":{"fr":"","en":"Kerdan's trading room manages three portfolios. Spot the erroneous statement.","es":""},"explanation":{"fr":"","en":"Rule to remember: holding for trading covers short-term resale, short-term profit-taking of a portfolio and derivatives; listing is not a criterion (IFRS 9).","es":""},"common_error":{"fr":"","en":"Deducing the management intention from the listing of the security.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"Bonds bought to be resold in the coming weeks are held for trading.","es":""},"erroneous":false},{"id":"S2","text":{"fr":"","en":"A portfolio of securities whose management regularly produces short-term profits is held for trading.","es":""},"erroneous":false},{"id":"S3","text":{"fr":"","en":"Shares kept in the hope of a distant capital gain are held for trading because they are listed.","es":""},"erroneous":true,"correction":{"fr":"","en":"Listing is not enough: it is the management objective (resale in the near term, short-term profit-taking) that qualifies the holding (IFRS 9).","es":""}},{"id":"S4","text":{"fr":"","en":"A derivative not designated as a hedging instrument is held for trading.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000006","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.SCOPE.OWN_USE"],"dimension":"PROFESSIONAL_JUDGMENT","format":"SINGLE_CHOICE","context":"ENERGY","tested_point":"OWN_USE_NET_SETTLEMENT_HISTORY","difficulty":"ADVANCED","estimated_time_s":60,"lesson_id":"LS.IFRS9.000001","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000001","section_id":"rule-own-use"},"references":["IFRS 9 §2.4","IFRS 9 §2.5","IFRS 9","IFRS 9 §2.6"],"exercise":{"prompt":{"fr":"","en":"The Tarvel flour mill enters into forward wheat purchase contracts for its production needs, but has several times net-settled similar contracts in recent years. Which reasoning is the soundest for the current contract?","es":""},"explanation":{"fr":"","en":"Rule to remember: own use is a documented judgement; a past practice of net settlement is an obstacle to the exception and a contract that fails is a derivative at fair value through profit or loss (IFRS 9, paras. 2.4 and 2.6).","es":""},"common_error":{"fr":"","en":"Relying only on the stated purpose of the contract.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Own use is established when the wheat is actually meant for production","es":""},"correct":false,"feedback":{"fr":"","en":"A past practice of net settlement of similar contracts is an obstacle to the exception, even if the stated purpose is production (IFRS 9, para. 2.6).","es":""}},{"id":"B","text":{"fr":"","en":"The exception is ruled out outright because of the past net settlements, with no analysis of the facts","es":""},"correct":false,"feedback":{"fr":"","en":"The conclusion is a judgement based on all the facts and circumstances, to be documented; there is no mechanical rule (IFRS 9, para. 2.4).","es":""}},{"id":"C","text":{"fr":"","en":"Past net settlements weigh against the exception: without a documented reason setting them aside, the contract would be a derivative at fair value through profit or loss","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The contract falls under IFRS 9 if the volume settled net exceeds a threshold set by the standard","es":""},"correct":false,"feedback":{"fr":"","en":"The standard sets no numerical threshold: the analysis is qualitative and documented (IFRS 9, para. 2.6).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000007","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.SCOPE.OVERVIEW"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"REAL_ESTATE","tested_point":"LEASE_EMBEDDED_DERIVATIVE_SCOPE","difficulty":"INTERMEDIATE","estimated_time_s":35,"lesson_id":"LS.IFRS9.000001","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000001","section_id":"rule-scope"},"references":["IFRS 9 §2.1"],"exercise":{"prompt":{"fr":"","en":"Since the lease falls under another standard, a derivative embedded in a lease is excluded with it from the scope of IFRS 9.","es":""},"explanation":{"fr":"","en":"Rule to remember: leases fall under another standard, but a derivative embedded in a lease remains within the scope of IFRS 9 (IFRS 9, para. 2.1).","es":""},"common_error":{"fr":"","en":"Excluding everything found in a lease contract.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000008","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.RECOGNITION.INITIAL"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"RECOGNITION_PARTY_TO_CONTRACT","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IFRS9.000002","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000002","section_id":"rule-recognition"},"references":["IFRS 9 §3.1.1","IFRS 9"],"exercise":{"prompt":{"fr":"","en":"A lender sends Lorvane a loan offer that it has not yet accepted. What is the right analysis?","es":""},"explanation":{"fr":"","en":"Rule to remember: recognition requires that the entity has become party to the contract (IFRS 9, para. 3.1.1).","es":""},"common_error":{"fr":"","en":"Recognising an intention or an offer as a contract.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Nothing is recognised until Lorvane is party to the provisions of the loan contract","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The debt is recorded on receipt of the offer, since the bank is ready to pay out the funds","es":""},"correct":false,"feedback":{"fr":"","en":"An offer not accepted creates no contractual obligation: the entity is not yet a party to the contract (IFRS 9, para. 3.1.1).","es":""}},{"id":"C","text":{"fr":"","en":"The debt is recorded on the date planned for the payout, whether or not the offer has been accepted","es":""},"correct":false,"feedback":{"fr":"","en":"The payout date does not replace entering the contract: without acceptance there is no debt (IFRS 9, para. 3.1.1).","es":""}},{"id":"D","text":{"fr":"","en":"A finance income is recognised, since the offer has a value for the entity","es":""},"correct":false,"feedback":{"fr":"","en":"An offer is not an already acquired contractual right and gives rise to no income (IFRS 9, para. 3.1.1).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000009","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.RECOGNITION.INITIAL"],"dimension":"APPLICATION","format":"TRUE_FALSE","context":"RETAIL","tested_point":"RECEIPT_BY_TRANSFER","difficulty":"INTERMEDIATE","estimated_time_s":35,"lesson_id":"LS.IFRS9.000002","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000002","section_id":"rule-recognition"},"references":["IFRS 9 §3.1.1","IFRS 9"],"exercise":{"prompt":{"fr":"","en":"A Brandel customer orders the transfer of an invoice on 30 June; the receivable is derecognised on 2 July when the funds arrive. Brandel must recognise the cash from 30 June.","es":""},"explanation":{"fr":"","en":"Rule to remember: cash received in settlement of a trade receivable is not recognised before the receivable is derecognised (IFRS 9, para. 3.1.1).","es":""},"common_error":{"fr":"","en":"Recording cash on the date of the transfer order.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000010","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.RECOGNITION.REGULAR_WAY"],"dimension":"CALCULATION","format":"CALCULATION","context":"BANKING","tested_point":"REGULAR_WAY_TWO_METHODS","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS9.000002","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000002","section_id":"rule-regular-way"},"references":["IFRS 9 §3.1.2"],"exercise":{"prompt":{"fr":"","en":"Delmar commits on 29 December to buy securities for €340,000, delivered and paid on 4 January. Case convention: fair value does not move between the two dates. Give the amounts at 31 December.","es":""},"explanation":{"fr":"","en":"Trade date: securities €340,000 and payable €340,000 at 31 December. Settlement date: no security or payable before delivery on 4 January, so €0 (IFRS 9, para. 3.1.2).","es":""},"common_error":{"fr":"","en":"Recording the security at 31 December under both methods.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Agreed purchase price","es":""},"value":"340000","unit":"EUR"}],"steps":[{"id":"s1","label":{"fr":"","en":"Securities on the balance sheet, trade-date method","es":""},"answer":340000,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Payable to the seller, trade-date method","es":""},"answer":340000,"tolerance":0,"unit":"EUR"},{"id":"s3","label":{"fr":"","en":"Securities on the balance sheet, settlement-date method","es":""},"answer":0,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000011","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.RECOGNITION.REGULAR_WAY","IFRS9.RECOGNITION.INITIAL"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"BANKING","tested_point":"TRADE_DATE_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS9.000002","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000002","section_id":"rule-regular-way"},"references":["IFRS 9 §3.1.2","IFRS 9 §3.1.1","IFRS 9"],"exercise":{"prompt":{"fr":"","en":"On 12 November, Rivane commits to buy securities for €175,000, delivered within the market time frame. It applies trade-date accounting. Post the 12 November entry.","es":""},"explanation":{"fr":"","en":"On the trade date, the asset and the payable to the seller are recognised for €175,000; cash moves only on delivery (IFRS 9, para. 3.1.2).","es":""},"common_error":{"fr":"","en":"Crediting cash before any payment.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"fa","text":{"fr":"","en":"Financial assets","es":""}},{"id":"pay","text":{"fr":"","en":"Payable to the securities seller","es":""}},{"id":"cash","text":{"fr":"","en":"Cash","es":""}},{"id":"inc","text":{"fr":"","en":"Finance income","es":""}}],"lines":[{"id":"l1","account":"fa","side":"DEBIT","amount":175000,"given":["account","side"]},{"id":"l2","account":"pay","side":"CREDIT","amount":175000,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000012","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.MEASUREMENT.INITIAL"],"dimension":"CALCULATION","format":"CALCULATION","context":"MEDIA","tested_point":"INITIAL_AMOUNT_ASSET","difficulty":"BEGINNER","estimated_time_s":120,"lesson_id":"LS.IFRS9.000002","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000002","section_id":"numeric-initial"},"references":["IFRS 9 §5.1.1"],"exercise":{"prompt":{"fr":"","en":"Torvan acquires a bond with a fair value of €420,000 and pays €3,150 in brokerage fees. Case convention: amounts in whole euros; if at FVTPL, the fees are charged to expenses.","es":""},"explanation":{"fr":"","en":"Amortised cost: 420,000 + 3,150 = €423,150. FVTPL: €420,000 and €3,150 in expenses (IFRS 9, para. 5.1.1).","es":""},"common_error":{"fr":"","en":"Adding the fees for FVTPL as well.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Fair value","es":""},"value":"420000","unit":"EUR"},{"label":{"fr":"","en":"Brokerage fees","es":""},"value":"3150","unit":"EUR"}],"steps":[{"id":"s1","label":{"fr":"","en":"Initial amount if the bond is at amortised cost","es":""},"answer":423150,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Initial amount if the bond is at FVTPL","es":""},"answer":420000,"tolerance":0,"unit":"EUR"},{"id":"s3","label":{"fr":"","en":"Fee expense if the bond is at FVTPL","es":""},"answer":3150,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Initial amount if the bond is at amortised cost","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value","es":""},"value":420000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Brokerage fees","es":""},"value":3150,"unit":"EUR"}],"result":423150,"unit":"EUR"}],"rationale":{"fr":"","en":"FVTPL: €420,000 and €3,150 in expenses (IFRS 9, para. 5.1.1).","es":""},"references":["REF.IFRS9.5.1.1"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000013","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.MEASUREMENT.INITIAL"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"TELECOM","tested_point":"TRANSACTION_COSTS_LIABILITY","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IFRS9.000002","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000002","section_id":"rule-initial"},"references":["IFRS 9 §5.1.1"],"exercise":{"prompt":{"fr":"","en":"What treatment of transaction costs applies to a loan that will be measured at amortised cost?","es":""},"explanation":{"fr":"","en":"Rule to remember: for a liability not at FVTPL, transaction costs are deducted from fair value (IFRS 9, para. 5.1.1).","es":""},"common_error":{"fr":"","en":"Treating a liability like an asset.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"They are added to the fair value of the loan, as for an asset at amortised cost","es":""},"correct":false,"feedback":{"fr":"","en":"For a liability, transaction costs are deducted from fair value (IFRS 9, para. 5.1.1).","es":""}},{"id":"B","text":{"fr":"","en":"They are charged to expenses at issue, without affecting the initial amount of the loan","es":""},"correct":false,"feedback":{"fr":"","en":"Outside FVTPL, they adjust the initial amount: they do not go straight to expenses (IFRS 9, para. 5.1.1).","es":""}},{"id":"C","text":{"fr":"","en":"They are carried on the balance sheet as a separate asset, amortised over the life of the loan","es":""},"correct":false,"feedback":{"fr":"","en":"The standard builds them into the liability's initial amount rather than isolating them in a separate asset (IFRS 9, para. 5.1.1).","es":""}},{"id":"D","text":{"fr":"","en":"They are deducted from the fair value of the loan to obtain its initial amount","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000014","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.MEASUREMENT.INITIAL","IFRS9.RECOGNITION.INITIAL"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"ENERGY","tested_point":"LOAN_NET_OF_ISSUE_COSTS","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS9.000002","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000002","section_id":"entry-initial"},"references":["IFRS 9 §5.1.1","IFRS 9 §3.1.1","IFRS 9"],"exercise":{"prompt":{"fr":"","en":"Sorvane issues a loan with a fair value of €600,000 and bears €7,500 of directly attributable issue costs. The loan will be measured at amortised cost. Post the issue entry, in net amounts.","es":""},"explanation":{"fr":"","en":"600,000 - 7,500 = €592,500: net cash received and the loan's initial amount coincide; issue costs are deducted from the liability's fair value (IFRS 9, para. 5.1.1).","es":""},"common_error":{"fr":"","en":"Debiting an issue cost expense instead of reducing the liability.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"cash","text":{"fr":"","en":"Cash","es":""}},{"id":"loan","text":{"fr":"","en":"Borrowings","es":""}},{"id":"exp","text":{"fr":"","en":"Issue costs (expenses)","es":""}},{"id":"fa","text":{"fr":"","en":"Financial assets at amortised cost","es":""}}],"lines":[{"id":"l1","account":"cash","side":"DEBIT","amount":592500,"given":["account","side"]},{"id":"l2","account":"loan","side":"CREDIT","amount":592500,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000015","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.MEASUREMENT.TRADE_RECEIVABLES_INITIAL","IFRS9.INTERACTIONS.IFRS15"],"dimension":"APPLICATION","format":"MINI_CASE","context":"AUTOMOTIVE","tested_point":"TRADE_RECEIVABLE_TRANSACTION_PRICE","difficulty":"INTERMEDIATE","estimated_time_s":180,"lesson_id":"LS.IFRS9.000002","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000002","section_id":"rule-trade-receivable"},"references":["IFRS 9 §5.1.3","IFRS 9 §5.5.15"],"exercise":{"prompt":{"fr":"","en":"Analyse the initial measurement of Vandor's receivable.","es":""},"explanation":{"fr":"","en":"Rule to remember: a receivable without significant financing enters at the IFRS 15 transaction price (IFRS 9, para. 5.1.3).","es":""},"common_error":{"fr":"","en":"Measuring every receivable at discounted fair value.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Vandor invoices a manufacturer for a batch of parts for €56,000, payable in 45 days. The contract has no significant financing component within the meaning of IFRS 15. The IFRS 15 transaction price is €56,000. The fair value of the receivable, computed by discounting, would be €55,800.","es":""},"parts":[{"prompt":{"fr":"","en":"What is the initial amount of the receivable?","es":""},"explanation":{"fr":"","en":"No significant financing component: the receivable enters at its transaction price, i.e. €56,000, not at the fair value of €55,800 (IFRS 9, para. 5.1.3).","es":""},"common_error":{"fr":"","en":"Discounting a short-term receivable with no significant financing.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"a","label":{"fr":"","en":"Initial amount of the receivable","es":""},"answer":56000,"tolerance":0,"unit":"EUR"}],"id":"p1","dimension":"CALCULATION"},{"prompt":{"fr":"","en":"Which standard supplies the transaction price used for the initial measurement?","es":""},"explanation":{"fr":"","en":"Rule to remember: the transaction price comes from IFRS 15 (IFRS 9, para. 5.1.3).","es":""},"common_error":{"fr":"","en":"Confusing the transaction price with fair value.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"IFRS 13, because the price is an indicator of fair value","es":""},"correct":false,"feedback":{"fr":"","en":"The paragraph refers to the IFRS 15 transaction price, not to IFRS 13 fair value measurement (IFRS 9, para. 5.1.3).","es":""}},{"id":"B","text":{"fr":"","en":"IFRS 15, which defines the transaction price of contracts with customers","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"IAS 32, which defines receivables among financial instruments","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 32 deals with the liability and equity distinction, not the transaction price (IFRS 9, para. 5.1.3).","es":""}},{"id":"D","text":{"fr":"","en":"IFRS 16, which sets the rules for receivables arising from leases, for lessor and lessee","es":""},"correct":false,"feedback":{"fr":"","en":"The contract is a sale of parts, not a lease (IFRS 9, para. 5.1.3).","es":""}}],"id":"p2","dimension":"RULE_KNOWLEDGE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000016","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.INTERACTIONS.IFRS13"],"dimension":"ANALYSIS","format":"SINGLE_CHOICE","context":"INSURANCE","tested_point":"IFRS13_BOUNDARY","difficulty":"ADVANCED","estimated_time_s":60,"lesson_id":"LS.IFRS9.000002","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000002","section_id":"rule-ifrs13"},"references":["IFRS 9 §5.1.1"],"exercise":{"prompt":{"fr":"","en":"In a closing file, an auditor asks Halvane to support the fair value of an illiquid bond. Which part of the work falls under IFRS 13 rather than IFRS 9?","es":""},"explanation":{"fr":"","en":"Rule to remember: IFRS 9 decides when fair value is the measurement basis; IFRS 13 decides how it is determined (pointer).","es":""},"common_error":{"fr":"","en":"Looking in IFRS 9 for the method to compute fair value.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Choosing the valuation techniques and the inputs to determine the bond's fair value","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Deciding whether the bond must be measured at fair value through profit or loss or at amortised cost","es":""},"correct":false,"feedback":{"fr":"","en":"Classification and the measurement category are the subject of IFRS 9, not of the IFRS 13 fair value measurement (IFRS 13).","es":""}},{"id":"C","text":{"fr":"","en":"Determining in which line of profit or loss or equity the value changes are recorded","es":""},"correct":false,"feedback":{"fr":"","en":"Where the changes are recorded depends on the measurement category set by IFRS 9 (IFRS 13).","es":""}},{"id":"D","text":{"fr":"","en":"Computing the loss allowance for expected credit losses on the bond","es":""},"correct":false,"feedback":{"fr":"","en":"The impairment model is that of IFRS 9; IFRS 13 does not deal with it (IFRS 13).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000017","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.DERECOGNITION.DECISION_TREE","IFRS9.DERECOGNITION.RIGHTS_EXPIRY_OR_TRANSFER"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"TREE_FIRST_QUESTION","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IFRS9.000003","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000003","section_id":"rule-tree"},"references":["IFRS 9 §3.2.6"],"exercise":{"prompt":{"fr":"","en":"What is the first question to ask in order to derecognise a financial asset?","es":""},"explanation":{"fr":"","en":"Rule to remember: start with the expiry of the contractual rights to the cash flows (IFRS 9).","es":""},"common_error":{"fr":"","en":"Starting with control or the assignment price.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Can the transferee resell the whole asset to an unrelated third party without restriction?","es":""},"correct":false,"feedback":{"fr":"","en":"That is the control question, which comes in only last (IFRS 9, para. 3.2.6).","es":""}},{"id":"B","text":{"fr":"","en":"Has the entity transferred substantially all the risks and rewards of the asset?","es":""},"correct":false,"feedback":{"fr":"","en":"That question assumes a transfer has already been established; it comes after expiry and transfer (IFRS 9, para. 3.2.6).","es":""}},{"id":"C","text":{"fr":"","en":"Have the contractual rights to the asset's cash flows expired?","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Is the assignment price higher than the carrying amount of the asset?","es":""},"correct":false,"feedback":{"fr":"","en":"The price serves to compute the gain or loss, once derecognition has been decided (IFRS 9).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000018","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.DERECOGNITION.RIGHTS_EXPIRY_OR_TRANSFER","IFRS9.DERECOGNITION.DECISION_TREE"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"MEDIA","tested_point":"TREE_OUTCOMES","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS9.000003","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000003","section_id":"rule-tree"},"references":["IFRS 9 §3.2.6"],"exercise":{"prompt":{"fr":"","en":"Each situation concerns a financial asset of Merval. Classify it according to its conclusion at this stage of the tree.","es":""},"explanation":{"fr":"","en":"Rule to remember: expiry or transfer of substantially all the risks: derecognition; retention of substantially all: kept; in between: examination of control (IFRS 9, para. 3.2.6).","es":""},"common_error":{"fr":"","en":"Deciding from the mere fact that there was an assignment against cash.","es":""},"format":"CLASSIFICATION","categories":[{"id":"OFF","text":{"fr":"","en":"Derecognised","es":""}},{"id":"ON","text":{"fr":"","en":"Kept on the balance sheet","es":""}},{"id":"CTRL","text":{"fr":"","en":"Control to be examined","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"A receivable is paid at maturity by the debtor; the rights to its flows have expired","es":""},"category":"OFF"},{"id":"I2","text":{"fr":"","en":"A portfolio is assigned with full recourse: Merval repays the non-payments and the delays","es":""},"category":"ON"},{"id":"I3","text":{"fr":"","en":"A loan is assigned with no recourse or guarantee: the buyer bears all the credit and late-payment risks","es":""},"category":"OFF"},{"id":"I4","text":{"fr":"","en":"An asset is assigned: Merval has neither transferred nor retained substantially all the risks and rewards","es":""},"category":"CTRL"},{"id":"I5","text":{"fr":"","en":"Bonds are sold with a firm commitment to repurchase at the same price plus a fixed interest","es":""},"category":"ON"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000019","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.DERECOGNITION.RISKS_REWARDS"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"BANKING","tested_point":"NO_NUMERICAL_THRESHOLD","difficulty":"INTERMEDIATE","estimated_time_s":35,"lesson_id":"LS.IFRS9.000003","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000003","section_id":"rule-risks"},"references":["IFRS 9 §3.2.6"],"exercise":{"prompt":{"fr":"","en":"The standard specifies a percentage of cash flow variability beyond which the risks and rewards are deemed retained.","es":""},"explanation":{"fr":"","en":"Rule to remember: no numerical threshold defines \"substantially all\"; the assessment compares exposure before and after the transfer (IFRS 9, para. 3.2.6).","es":""},"common_error":{"fr":"","en":"Attributing to the standard a threshold known from other frameworks or practices.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000020","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.DERECOGNITION.RISKS_REWARDS","IFRS9.DERECOGNITION.DECISION_TREE"],"dimension":"ANALYSIS","format":"MINI_CASE","context":"AUTOMOTIVE","tested_point":"FACTORING_ANALYSIS","difficulty":"INTERMEDIATE","estimated_time_s":180,"lesson_id":"LS.IFRS9.000003","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000003","section_id":"example"},"references":["IFRS 9 §3.2.6"],"exercise":{"prompt":{"fr":"","en":"Analyse Sivane's receivables assignment.","es":""},"explanation":{"fr":"","en":"Rule to remember: risks borne by the transferee without recourse: derecognition; the difference between consideration and carrying amount goes to profit or loss (IFRS 9, para. 3.2.6).","es":""},"common_error":{"fr":"","en":"Keeping the receivables on the balance sheet because they were assigned at a loss.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Sivane assigns trade receivables of €320,000 to a factor for €305,000 in cash. The contract provides that the factor bears non-payments without recourse against Sivane, that delays give rise to no interest charged to Sivane and that there is no repurchase option. The rights to the cash flows have not expired.","es":""},"parts":[{"prompt":{"fr":"","en":"What is the conclusion at the risks and rewards step?","es":""},"explanation":{"fr":"","en":"Rule to remember: if the transferee bears the credit and late-payment risks without recourse, substantially all are transferred (IFRS 9, para. 3.2.6).","es":""},"common_error":{"fr":"","en":"Seeing a retention of risk in the discount.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Sivane retains substantially all the risks, since it assigned the receivables at a discount","es":""},"correct":false,"feedback":{"fr":"","en":"The discount is the price of the assignment, not a retention of risk (IFRS 9, para. 3.2.6).","es":""}},{"id":"B","text":{"fr":"","en":"Sivane has transferred substantially all the risks and rewards: the factor bears non-payments and delays","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Sivane has neither transferred nor retained substantially all: control must be examined","es":""},"correct":false,"feedback":{"fr":"","en":"The facts of the case leave Sivane with no exposure; the control step is not needed (IFRS 9, para. 3.2.6).","es":""}},{"id":"D","text":{"fr":"","en":"The conclusion depends on the percentage of risk transferred, which Sivane must calculate before concluding","es":""},"correct":false,"feedback":{"fr":"","en":"The standard calls for a judgement on the facts, without a percentage (IFRS 9, para. 3.2.6).","es":""}}],"id":"p1","dimension":"ANALYSIS"},{"prompt":{"fr":"","en":"Calculate the result of the assignment.","es":""},"explanation":{"fr":"","en":"Consideration €305,000 - carrying amount €320,000 = loss of €15,000 in profit or loss (IFRS 9).","es":""},"common_error":{"fr":"","en":"Reversing the sign of the difference.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"a","label":{"fr":"","en":"Loss on derecognition","es":""},"answer":15000,"tolerance":0,"unit":"EUR"}],"id":"p2","dimension":"CALCULATION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000021","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.DERECOGNITION.GAIN_LOSS"],"dimension":"CALCULATION","format":"CALCULATION","context":"TOURISM","tested_point":"DERECOGNITION_GAIN","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS9.000003","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000003","section_id":"numeric-gain-loss"},"references":["IFRS 9 §3.2.12"],"exercise":{"prompt":{"fr":"","en":"Hovane assigns receivables with a carrying amount of €128,000 for €131,500. Derecognition is complete and no amount sits in other comprehensive income. Calculate the result.","es":""},"explanation":{"fr":"","en":"131,500 - 128,000 = gain of €3,500 in profit or loss (IFRS 9).","es":""},"common_error":{"fr":"","en":"Comparing the consideration with the invoiced nominal amount rather than the carrying amount.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Carrying amount","es":""},"value":"128000","unit":"EUR"},{"label":{"fr":"","en":"Consideration received","es":""},"value":"131500","unit":"EUR"}],"steps":[{"id":"s1","label":{"fr":"","en":"Gain (+) or loss (-) on derecognition","es":""},"answer":3500,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000022","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.DERECOGNITION.GAIN_LOSS"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"TRANSPORT","tested_point":"DERECOGNITION_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS9.000003","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000003","section_id":"numeric-gain-loss"},"references":["IFRS 9 §3.2.12"],"exercise":{"prompt":{"fr":"","en":"Dolvane assigns receivables with a carrying amount of €84,000 for €79,200. Derecognition is complete. Post the assignment entry.","es":""},"explanation":{"fr":"","en":"84,000 - 79,200 = €4,800 loss; debit cash 79,200 and loss 4,800, credit receivables 84,000 (IFRS 9).","es":""},"common_error":{"fr":"","en":"Crediting a gain although the consideration is below the carrying amount.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"cash","text":{"fr":"","en":"Cash","es":""}},{"id":"rec","text":{"fr":"","en":"Trade receivables","es":""}},{"id":"loss","text":{"fr":"","en":"Loss on disposal of financial assets","es":""}},{"id":"gain","text":{"fr":"","en":"Gain on disposal of financial assets","es":""}}],"lines":[{"id":"l1","account":"cash","side":"DEBIT","amount":79200,"given":["account"]},{"id":"l2","account":"loss","side":"DEBIT","amount":4800,"given":["account"]},{"id":"l3","account":"rec","side":"CREDIT","amount":84000,"given":["account"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000023","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.DERECOGNITION.PASS_THROUGH"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"REAL_ESTATE","tested_point":"PASS_THROUGH_CONDITIONS","difficulty":"ADVANCED","estimated_time_s":60,"lesson_id":"LS.IFRS9.000003","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000003","section_id":"rule-pass-through"},"references":["IFRS 9 §3.2.5"],"exercise":{"prompt":{"fr":"","en":"Gartel collects the rents of a property portfolio and passes them on to investors. Which clause prevents treating the arrangement as a pass-through transfer?","es":""},"explanation":{"fr":"","en":"Rule to remember: no obligation to pay more than is collected, a ban on disposing of the asset and remittance without material delay (IFRS 9, para. 3.2.5).","es":""},"common_error":{"fr":"","en":"Forgetting that the entity must not advance its own funds.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Gartel passes the rents on to investors each month, without particular delay","es":""},"correct":false,"feedback":{"fr":"","en":"A regular remittance without material delay is precisely one of the three conditions (IFRS 9, para. 3.2.5).","es":""}},{"id":"B","text":{"fr":"","en":"The contract prohibits Gartel from selling the buildings except as security for the investors","es":""},"correct":false,"feedback":{"fr":"","en":"This ban on disposing of the original asset is one of the conditions of the pass-through, not an obstacle (IFRS 9, para. 3.2.5).","es":""}},{"id":"C","text":{"fr":"","en":"The investors are third parties with no link to Gartel and its shareholders","es":""},"correct":false,"feedback":{"fr":"","en":"The investors' independence is not among the three conditions and does not prevent the pass-through (IFRS 9, para. 3.2.5).","es":""}},{"id":"D","text":{"fr":"","en":"Gartel must pay investors a fixed monthly sum even if the rents have not yet been collected","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000024","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.DERECOGNITION.CONTROL_TEST","IFRS9.DERECOGNITION.DECISION_TREE"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"BANKING","tested_point":"CONTROL_PRACTICAL_ABILITY","difficulty":"EXPERT","estimated_time_s":180,"lesson_id":"LS.IFRS9.000003","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000003","section_id":"rule-control"},"references":["IFRS 9 §3.2.6"],"exercise":{"prompt":{"fr":"","en":"Analyse Tamrel's derecognition file for the syndicated loan.","es":""},"explanation":{"fr":"","en":"Rule to remember: control is judged on the transferee's practical ability to resell the whole asset alone (IFRS 9).","es":""},"common_error":{"fr":"","en":"Sticking to the letter of the contract without the practical constraints.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Tamrel assigns an unlisted syndicated loan with no active market to a fund. After analysis, it concludes that it has neither transferred nor retained substantially all the risks and rewards. The fund may in law resell the loan to any third party, but the contract gives Tamrel a right of first refusal (the fund must first offer it the loan, at a fixed price, before any resale to a third party), and the consent of the other lenders is required for any resale.","es":""},"parts":[{"prompt":{"fr":"","en":"Which question becomes decisive for Tamrel?","es":""},"explanation":{"fr":"","en":"Rule to remember: failing a conclusion on risks and rewards, control decides, according to the practical ability to resell (IFRS 9).","es":""},"common_error":{"fr":"","en":"Redoing the risk analysis already concluded.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Had the contractual rights to the loan's cash flows expired on the assignment date?","es":""},"correct":false,"feedback":{"fr":"","en":"Expiry is the first question; here the rights are assigned and the risks and rewards already analysed (IFRS 9, para. 3.2.6).","es":""}},{"id":"B","text":{"fr":"","en":"Is the assignment price equal to the loan's carrying amount in Tamrel's books?","es":""},"correct":false,"feedback":{"fr":"","en":"The price determines the gain or loss, not the conclusion on control (IFRS 9).","es":""}},{"id":"C","text":{"fr":"","en":"Is the fund consolidated by Tamrel under the consolidation rules?","es":""},"correct":false,"feedback":{"fr":"","en":"Consolidation falls under another standard; it does not replace the control step for the transferred asset (IFRS 9).","es":""}},{"id":"D","text":{"fr":"","en":"Does the fund have the practical ability to sell the whole loan to an unrelated third party without additional restriction?","es":""},"correct":true}],"id":"p1","dimension":"RECOGNITION"},{"prompt":{"fr":"","en":"Which conclusion is best supported by the facts?","es":""},"explanation":{"fr":"","en":"Rule to remember: control is not retained only if the transferee can in practice resell the whole asset alone without additional restriction (IFRS 9).","es":""},"common_error":{"fr":"","en":"Confusing legal freedom to resell with practical ability.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Control is not retained, since the fund is legally free to resell","es":""},"correct":false,"feedback":{"fr":"","en":"Legal freedom is not enough: the right of first refusal and the other lenders' consent hold back resale in practice (IFRS 9).","es":""}},{"id":"B","text":{"fr":"","en":"Control is retained: the fund cannot sell alone, without additional restriction; the loan stays recognised to the extent of continuing involvement","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The loan is derecognised in full, since there is no active market on which to resell it","es":""},"correct":false,"feedback":{"fr":"","en":"The absence of a market points rather to retained control, resale being difficult in practice (IFRS 9).","es":""}},{"id":"D","text":{"fr":"","en":"The loan stays fully recognised, as if substantially all the risks were retained","es":""},"correct":false,"feedback":{"fr":"","en":"The case states that substantially all is neither transferred nor retained; the asset stays recognised only to the extent of continuing involvement (IFRS 9, para. 3.2.6).","es":""}}],"id":"p2","dimension":"PROFESSIONAL_JUDGMENT"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000025","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.DERECOGNITION.LIABILITY_EXTINGUISHMENT"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"EXTINGUISHMENT_TRIGGER","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IFRS9.000004","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000004","section_id":"rule-extinguishment"},"references":["IFRS 9 §3.3.1","IFRS 9 §3.3.3"],"exercise":{"prompt":{"fr":"","en":"In which of these cases is a financial liability of Moriel extinguished?","es":""},"explanation":{"fr":"","en":"Rule to remember: the liability is extinguished if the obligation is discharged, cancelled or has expired (IFRS 9, para. 3.3.1).","es":""},"common_error":{"fr":"","en":"Confusing intention or provision with legal extinguishment.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The lender's written waiver of its claim, which cancels Moriel's debt","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The decision to repay the debt next month, with no payment made to date","es":""},"correct":false,"feedback":{"fr":"","en":"An intention to repay does not discharge the obligation: the liability remains (IFRS 9, para. 3.3.1).","es":""}},{"id":"C","text":{"fr":"","en":"A provision set aside to repay the debt at the scheduled maturity","es":""},"correct":false,"feedback":{"fr":"","en":"Setting aside reserves does not release the entity from its obligation to the lender (IFRS 9, para. 3.3.1).","es":""}},{"id":"D","text":{"fr":"","en":"The reclassification of the long-term debt as short-term","es":""},"correct":false,"feedback":{"fr":"","en":"A mere change of presentation does not extinguish the obligation (IFRS 9, para. 3.3.1).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000026","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.DERECOGNITION.LIABILITY_EXTINGUISHMENT"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"TELECOM","tested_point":"EXTINGUISHMENT_DIRECTION","difficulty":"BEGINNER","estimated_time_s":35,"lesson_id":"LS.IFRS9.000004","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000004","section_id":"rule-extinguishment"},"references":["IFRS 9 §3.3.1","IFRS 9 §3.3.3"],"exercise":{"prompt":{"fr":"","en":"If an entity buys back its debt for a price above its carrying amount, it recognises a gain in profit or loss.","es":""},"explanation":{"fr":"","en":"Rule to remember: gain or loss on extinguishment = carrying amount - consideration paid; a higher consideration gives a loss (IFRS 9, para. 3.3.3).","es":""},"common_error":{"fr":"","en":"Reasoning as for an asset sold.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000027","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.DERECOGNITION.LIABILITY_EXTINGUISHMENT"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"ENERGY","tested_point":"EXTINGUISHMENT_ENTRY_GAIN","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS9.000004","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000004","section_id":"entry-extinguishment"},"references":["IFRS 9 §3.3.1","IFRS 9 §3.3.3"],"exercise":{"prompt":{"fr":"","en":"Lorvik buys back for €702,500 a bond whose carrying amount is €730,000. Post the buyback entry.","es":""},"explanation":{"fr":"","en":"730,000 - 702,500 = €27,500 gain: debit bonds 730,000, credit cash 702,500 and gain 27,500 (IFRS 9, para. 3.3.3).","es":""},"common_error":{"fr":"","en":"Debiting a loss although the consideration is below the carrying amount.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"bond","text":{"fr":"","en":"Bonds payable","es":""}},{"id":"cash","text":{"fr":"","en":"Cash","es":""}},{"id":"gain","text":{"fr":"","en":"Gain on extinguishment of liability","es":""}},{"id":"loss","text":{"fr":"","en":"Loss on extinguishment of liability","es":""}}],"lines":[{"id":"l1","account":"bond","side":"DEBIT","amount":730000,"given":["account","side"]},{"id":"l2","account":"cash","side":"CREDIT","amount":702500,"given":["account","side"]},{"id":"l3","account":"gain","side":"CREDIT","amount":27500,"given":["account"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000028","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.DERECOGNITION.LIABILITY_MODIFICATION"],"dimension":"CALCULATION","format":"CALCULATION","context":"CONSTRUCTION","tested_point":"TEN_PERCENT_TEST_NOT_SUBSTANTIAL","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS9.000004","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000004","section_id":"numeric-10pct"},"references":["IFRS 9 §3.3.2","IFRS 9 §B3.3.6"],"exercise":{"prompt":{"fr":"","en":"Mavrel must repay €600,000 in five years, with a 6% coupon: original effective interest rate 6%, present value of the remaining cash flows €600,000. New terms: annual coupon of €24,000 and principal of €600,000 in five years, fee of €6,000 received from the lender. Case convention: present values rounded to the euro; percentage difference rounded to one decimal.","es":""},"explanation":{"fr":"","en":"24,000 / 1.06 + 24,000 / 1.06² + 24,000 / 1.06³ + 24,000 / 1.06⁴ + 624,000 / 1.06⁵ = €549,452; less the fee of 6,000: €543,452. Difference: -56,548 / 600,000 = -9.4%, i.e. below 10% in absolute terms: no substantial modification (IFRS 9, para. B3.3.6).","es":""},"common_error":{"fr":"","en":"Forgetting to deduct the fee received or comparing with an amount other than €600,000.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Present value of the original remaining cash flows","es":""},"value":"600000","unit":"EUR"},{"label":{"fr":"","en":"Original effective interest rate","es":""},"value":"6","unit":"PERCENT"}],"steps":[{"id":"s1","label":{"fr":"","en":"Present value of the new cash flows at 6%","es":""},"answer":549452,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Present value net of the fee received","es":""},"answer":543452,"tolerance":0,"unit":"EUR"},{"id":"s3","label":{"fr":"","en":"Difference from the original value, in percent (negative if lower)","es":""},"answer":-9.4,"tolerance":0,"unit":"PERCENT"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000029","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.DERECOGNITION.LIABILITY_MODIFICATION"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"MEDIA","tested_point":"TEN_PERCENT_FLOWS_INCLUDED","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS9.000004","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000004","section_id":"rule-modification"},"references":["IFRS 9 §3.3.2","IFRS 9 §B3.3.6"],"exercise":{"prompt":{"fr":"","en":"In the 10% test, a borrower pays an €8,000 fee to the lender on the modification. How does it include it?","es":""},"explanation":{"fr":"","en":"Rule to remember: fees paid net of fees received enter the present value of the new cash flows (IFRS 9, para. B3.3.6).","es":""},"common_error":{"fr":"","en":"Leaving fees outside the test.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It leaves it out: the flows of the test are the principal and interest instalments, which leaves the fee out of the calculation","es":""},"correct":false,"feedback":{"fr":"","en":"Fees paid, net of fees received, are part of the discounted new cash flows (IFRS 9, para. B3.3.6).","es":""}},{"id":"B","text":{"fr":"","en":"It adds it to the new cash flows, net of any fees received, before comparing","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It deducts it from the remaining original cash flows to bring the two values closer","es":""},"correct":false,"feedback":{"fr":"","en":"The fee belongs to the new terms; the original flows remain those that subsist (IFRS 9, para. B3.3.6).","es":""}},{"id":"D","text":{"fr":"","en":"It spreads it over the life of the debt without discounting it in the test","es":""},"correct":false,"feedback":{"fr":"","en":"The test discounts all new cash flows, fee included, at the original effective rate (IFRS 9, para. B3.3.6).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000030","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.DERECOGNITION.LIABILITY_MODIFICATION"],"dimension":"ANALYSIS","format":"MINI_CASE","context":"SOFTWARE","tested_point":"TEN_PERCENT_SUBSTANTIAL_CASE","difficulty":"INTERMEDIATE","estimated_time_s":180,"lesson_id":"LS.IFRS9.000004","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000004","section_id":"numeric-10pct"},"references":["IFRS 9 §3.3.2","IFRS 9 §B3.3.6"],"exercise":{"prompt":{"fr":"","en":"Analyse the renegotiation of Ostrel's debt.","es":""},"explanation":{"fr":"","en":"Rule to remember: the test compares present values at the original effective rate; at least 10% difference: substantial modification (IFRS 9, para. B3.3.6).","es":""},"common_error":{"fr":"","en":"Merely comparing coupons.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Ostrel must repay €600,000 in four years; the original effective interest rate is 6% and the present value of the remaining cash flows is €600,000. The lender agrees to extend the debt to eight years with an annual coupon of €18,000 and principal of €600,000 at maturity, with no fee. Case convention: present values rounded to the euro; percentage difference rounded to one decimal.","es":""},"parts":[{"prompt":{"fr":"","en":"Calculate the present value of the new cash flows and the percentage difference.","es":""},"explanation":{"fr":"","en":"Present value at 6% of the eight coupons of €18,000 and of the principal: €488,224. Difference: (488,224 - 600,000) / 600,000 = -18.6% (IFRS 9, para. B3.3.6).","es":""},"common_error":{"fr":"","en":"Discounting at the 3% coupon instead of the original effective rate.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"a","label":{"fr":"","en":"Present value of the new cash flows at 6%","es":""},"answer":488224,"tolerance":0,"unit":"EUR"},{"id":"b","label":{"fr":"","en":"Difference from the original value, in percent (negative if lower)","es":""},"answer":-18.6,"tolerance":0,"unit":"PERCENT"}],"id":"p1","dimension":"CALCULATION"},{"prompt":{"fr":"","en":"What conclusion does the test lead to?","es":""},"explanation":{"fr":"","en":"Rule to remember: a difference of at least 10% leads to extinguishment of the old liability and a new liability (IFRS 9, paras. 3.3.2 and B3.3.6).","es":""},"common_error":{"fr":"","en":"Making the conclusion depend on the debtor's financial position.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The difference exceeds 10% in absolute terms, but the original liability continues for lack of financial difficulty","es":""},"correct":false,"feedback":{"fr":"","en":"A substantial modification is assessed whether or not the debtor is in difficulty (IFRS 9, para. 3.3.2).","es":""}},{"id":"B","text":{"fr":"","en":"The difference is below 10%: the debt continues on its new terms","es":""},"correct":false,"feedback":{"fr":"","en":"The calculation gives a difference above 10% in absolute terms: the opposite conclusion applies (IFRS 9, para. B3.3.6).","es":""}},{"id":"C","text":{"fr":"","en":"The test is inconclusive until the fair value of the new debt is known","es":""},"correct":false,"feedback":{"fr":"","en":"The 10% test rests on present values at the original rate, not on fair value (IFRS 9, para. B3.3.6).","es":""}},{"id":"D","text":{"fr":"","en":"The difference exceeds 10%: the terms are substantially different, the old liability is extinguished and a new liability is recognised","es":""},"correct":true}],"id":"p2","dimension":"APPLICATION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000031","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.DERECOGNITION.LIABILITY_MODIFICATION"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"AGRIFOOD","tested_point":"SUBSTANTIAL_MODIFICATION_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS9.000004","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000004","section_id":"entry-modification"},"references":["IFRS 9 §3.3.2","IFRS 9 §B3.3.6"],"exercise":{"prompt":{"fr":"","en":"Tarvane renegotiates a loan with a carrying amount of €900,000: the 10% test concludes a substantial modification. The fair value of the new loan is €810,000 and Tarvane pays €13,000 in fees. Post the entry.","es":""},"explanation":{"fr":"","en":"Gain = 900,000 - (810,000 + 13,000) = €77,000: the fees go into the gain on extinguishment; the new loan is recorded at fair value (IFRS 9, para. 3.3.3).","es":""},"common_error":{"fr":"","en":"Spreading the fees instead of including them in the gain on extinguishment.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"old","text":{"fr":"","en":"Original borrowing","es":""}},{"id":"new","text":{"fr":"","en":"New borrowing","es":""}},{"id":"cash","text":{"fr":"","en":"Cash","es":""}},{"id":"gain","text":{"fr":"","en":"Gain on extinguishment of liability","es":""}},{"id":"loss","text":{"fr":"","en":"Loss on extinguishment of liability","es":""}}],"lines":[{"id":"l1","account":"old","side":"DEBIT","amount":900000,"given":["account","side"]},{"id":"l2","account":"new","side":"CREDIT","amount":810000,"given":["account"]},{"id":"l3","account":"cash","side":"CREDIT","amount":13000,"given":["account"]},{"id":"l4","account":"gain","side":"CREDIT","amount":77000}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000032","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.DERECOGNITION.LIABILITY_MODIFICATION"],"dimension":"RECOGNITION","format":"ERROR_SPOT","context":"PHARMA","tested_point":"TEN_PERCENT_ERROR_SPOT","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS9.000004","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000004","section_id":"rule-modification"},"references":["IFRS 9 §3.3.2","IFRS 9 §B3.3.6"],"exercise":{"prompt":{"fr":"","en":"A student summarises the 10% test. Spot the erroneous statement.","es":""},"explanation":{"fr":"","en":"Rule to remember: the test compares two present values at the same original effective rate (IFRS 9, para. B3.3.6).","es":""},"common_error":{"fr":"","en":"Comparing discounted new flows with an undiscounted carrying amount.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"The remaining cash flows of the original liability are discounted at the original effective interest rate.","es":""},"erroneous":false},{"id":"S2","text":{"fr":"","en":"The present value of the new cash flows is compared with the carrying amount of the old liability, without discounting the original cash flows.","es":""},"erroneous":true,"correction":{"fr":"","en":"The comparison is with the present value of the remaining original cash flows, computed at the same rate (IFRS 9, para. B3.3.6).","es":""}},{"id":"S3","text":{"fr":"","en":"A difference of at least 10% signals that the terms are substantially different.","es":""},"erroneous":false},{"id":"S4","text":{"fr":"","en":"In case of a substantial modification, the new liability is recognised at fair value.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000033","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.DERECOGNITION.LIABILITY_MODIFICATION"],"dimension":"PROFESSIONAL_JUDGMENT","format":"SINGLE_CHOICE","context":"BANKING","tested_point":"TEN_PERCENT_DOCUMENTATION","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS9.000004","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000004","section_id":"judgment"},"references":["IFRS 9 §3.3.2","IFRS 9 §B3.3.6"],"exercise":{"prompt":{"fr":"","en":"Quirel's 10% test gives a difference of 9.6%. What must the accounting file do?","es":""},"explanation":{"fr":"","en":"Rule to remember: the threshold is numerical but the cash flows retained call for a documented judgement (IFRS 9, para. B3.3.6).","es":""},"common_error":{"fr":"","en":"Treating a difference close to the threshold as a mere formality.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Document the cash flows retained, the original rate and the sensitivity of the calculation, since the difference is close to the threshold","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Treat the modification as substantial out of prudence, given how close the figure is to the threshold","es":""},"correct":false,"feedback":{"fr":"","en":"The test gives a numerical answer: at 9.6%, the difference is below the threshold and prudence does not change that (IFRS 9, para. B3.3.6).","es":""}},{"id":"C","text":{"fr":"","en":"Simply conclude that there is no substantial modification, with no further support or file evidence","es":""},"correct":false,"feedback":{"fr":"","en":"A difference close to the threshold calls for reinforced documentation of the choices of flows and rate (IFRS 9, para. B3.3.6).","es":""}},{"id":"D","text":{"fr":"","en":"Replace the test with a comparison of fair values, judged more reliable near the threshold","es":""},"correct":false,"feedback":{"fr":"","en":"The test to apply is that of present values at the original rate; it is not replaced depending on proximity to the threshold (IFRS 9, para. B3.3.6).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000034","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.CLASSIF_ASSETS.OVERVIEW"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"TWO_CRITERIA","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IFRS9.000005","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000005","section_id":"rule-categories"},"references":["IFRS 9 §4.1.1","IFRS 9 §4.1.4"],"exercise":{"prompt":{"fr":"","en":"Which two criteria determine the measurement category of a financial asset?","es":""},"explanation":{"fr":"","en":"Rule to remember: classification depends on the business model and the contractual cash flows (IFRS 9).","es":""},"common_error":{"fr":"","en":"Classifying by the risk or size of the asset.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The amount of the asset and the remaining time to its maturity","es":""},"correct":false,"feedback":{"fr":"","en":"Neither the amount nor the maturity drives classification (IFRS 9).","es":""}},{"id":"B","text":{"fr":"","en":"The debtor's creditworthiness and the presence of collateral on the asset","es":""},"correct":false,"feedback":{"fr":"","en":"Credit quality plays a part in impairment, not in the choice of category (IFRS 9).","es":""}},{"id":"C","text":{"fr":"","en":"The business model for managing the asset and the characteristics of its contractual cash flows","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The issuer's sector and the currency in which the asset is denominated, and the issuer's external rating","es":""},"correct":false,"feedback":{"fr":"","en":"Sector and currency play no part in classification (IFRS 9).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000035","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.CLASSIF_ASSETS.OVERVIEW","IFRS9.CLASSIF_ASSETS.BUSINESS_MODEL"],"dimension":"APPLICATION","format":"CLASSIFICATION","context":"BANKING","tested_point":"CATEGORY_DECISION","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS9.000005","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000005","section_id":"rule-categories"},"references":["IFRS 9 §4.1.2","IFRS 9 §4.1.2A"],"exercise":{"prompt":{"fr":"","en":"Classify each bond portfolio of Terval into its measurement category. All the cash flows are SPPI.","es":""},"explanation":{"fr":"","en":"Rule to remember: collect: amortised cost; collect and sell: FVOCI; other model: FVTPL (IFRS 9).","es":""},"common_error":{"fr":"","en":"Classifying in FVOCI any portfolio where a sale exists.","es":""},"format":"CLASSIFICATION","categories":[{"id":"AC","text":{"fr":"","en":"Amortised cost","es":""}},{"id":"OCI","text":{"fr":"","en":"FVOCI","es":""}},{"id":"PL","text":{"fr":"","en":"FVTPL","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Bonds kept to collect coupons and principal; only marginal sales linked to credit deterioration","es":""},"category":"AC"},{"id":"I2","text":{"fr":"","en":"Bonds bought to cover cash outflows, sold regularly when liquidity needs require","es":""},"category":"OCI"},{"id":"I3","text":{"fr":"","en":"Bonds managed and evaluated at fair value, with a short-term gain objective","es":""},"category":"PL"},{"id":"I4","text":{"fr":"","en":"Bonds of a regulatory reserve held to maturity for their cash flows","es":""},"category":"AC"},{"id":"I5","text":{"fr":"","en":"Bonds of a portfolio whose performance is reported to management at fair value and whose disposals are frequent","es":""},"category":"PL"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000036","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.CLASSIF_ASSETS.BUSINESS_MODEL"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"INSURANCE","tested_point":"CREDIT_SALES_COMPATIBLE","difficulty":"BEGINNER","estimated_time_s":35,"lesson_id":"LS.IFRS9.000005","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000005","section_id":"rule-business-model"},"references":["IFRS 9 §4.1.2","IFRS 9 §4.1.2A"],"exercise":{"prompt":{"fr":"","en":"Sales of assets prompted by a deterioration in credit risk are consistent with a business model of collecting contractual cash flows.","es":""},"explanation":{"fr":"","en":"Rule to remember: sales linked to credit risk deterioration do not rule out the collection model (IFRS 9).","es":""},"common_error":{"fr":"","en":"Treating any sale as breaking the collection model.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000037","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.CLASSIF_ASSETS.BUSINESS_MODEL"],"dimension":"RECOGNITION","format":"MATCHING","context":"TELECOM","tested_point":"EVIDENCE_MATCHING","difficulty":"INTERMEDIATE","estimated_time_s":80,"lesson_id":"LS.IFRS9.000005","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000005","section_id":"rule-business-model"},"references":["IFRS 9 §4.1.2","IFRS 9 §4.1.2A"],"exercise":{"prompt":{"fr":"","en":"Match each piece of evidence with what it helps assess in the business model analysis.","es":""},"explanation":{"fr":"","en":"Rule to remember: the model is deduced from reporting, past and expected sales and remuneration (IFRS 9).","es":""},"common_error":{"fr":"","en":"Looking for evidence of the model in the future disposal price.","es":""},"format":"MATCHING","left":[{"id":"L1","text":{"fr":"","en":"Reports given to key management personnel","es":""}},{"id":"L2","text":{"fr":"","en":"Sales history for the period","es":""}},{"id":"L3","text":{"fr":"","en":"Basis for calculating managers' bonuses","es":""}}],"right":[{"id":"R1","text":{"fr":"","en":"Whether performance is monitored at fair value or in cash flows collected","es":""}},{"id":"R2","text":{"fr":"","en":"Frequency, value, timing and reasons of past disposals","es":""}},{"id":"R3","text":{"fr":"","en":"Managers' orientation towards contractual cash flows or towards market value","es":""}},{"id":"R4","text":{"fr":"","en":"Price at which the asset will eventually be sold","es":""}}],"pairs":[{"left":"L1","right":"R1"},{"left":"L2","right":"R2"},{"left":"L3","right":"R3"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000038","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.CLASSIF_ASSETS.BUSINESS_MODEL"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"LUXURY","tested_point":"SALES_HISTORY_JUDGMENT","difficulty":"INTERMEDIATE","estimated_time_s":180,"lesson_id":"LS.IFRS9.000005","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000005","section_id":"example"},"references":["IFRS 9 §4.1.2","IFRS 9 §4.1.2A"],"exercise":{"prompt":{"fr":"","en":"Assess the business model of Sarvel's loan portfolio.","es":""},"explanation":{"fr":"","en":"Rule to remember: the judgement on the model rests on past and expected sales, their reasons and actual management (IFRS 9).","es":""},"common_error":{"fr":"","en":"Concluding mechanically from the number of sales.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Sarvel holds a portfolio of fixed-rate loans, all SPPI, managed to collect interest and principal. Over three years, disposals took place: two sales, each after a downgrade of a borrower's rating, and one sale of a large loan to optimise the portfolio's yield. Management has planned no further sales.","es":""},"parts":[{"prompt":{"fr":"","en":"What do the sales linked to rating downgrades indicate?","es":""},"explanation":{"fr":"","en":"Rule to remember: sales due to credit risk deterioration are consistent with collection (IFRS 9).","es":""},"common_error":{"fr":"","en":"Counting sales without examining their reasons.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"They are consistent with a collection model, since they respond to a deterioration in credit risk","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"They prove that the portfolio is managed at fair value, hence classified at FVTPL","es":""},"correct":false,"feedback":{"fr":"","en":"Sales for credit risk are consistent with collection and do not suffice to require FVTPL (IFRS 9).","es":""}},{"id":"C","text":{"fr":"","en":"They require counting as sales the transactions of the portfolio since inception, even those unrelated to credit risk","es":""},"correct":false,"feedback":{"fr":"","en":"The standard asks to examine frequency, value, timing and reasons, with no mechanical counting rule (IFRS 9).","es":""}},{"id":"D","text":{"fr":"","en":"They are neutral: sales decided by senior management are what count","es":""},"correct":false,"feedback":{"fr":"","en":"The reasons for the sales are on the contrary a central element of the analysis (IFRS 9).","es":""}}],"id":"p1","dimension":"RECOGNITION"},{"prompt":{"fr":"","en":"What should be concluded, on these facts, for Sarvel's model?","es":""},"explanation":{"fr":"","en":"Rule to remember: a conclusion on the model rests on the facts and their reasons, without a numerical threshold (IFRS 9).","es":""},"common_error":{"fr":"","en":"Looking for a number or percentage of sales set by the standard.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The collection model is invalidated by the first sale motivated by yield","es":""},"correct":false,"feedback":{"fr":"","en":"The standard sets no number of sales that invalidates the model; the analysis covers all the facts (IFRS 9).","es":""}},{"id":"B","text":{"fr":"","en":"The portfolio moves to FVOCI because sales have taken place","es":""},"correct":false,"feedback":{"fr":"","en":"A collect-and-sell model assumes sales are part of the objective, which the facts do not show (IFRS 9).","es":""}},{"id":"C","text":{"fr":"","en":"The collection model is maintained without examination, since the sale concerns only a small part of the portfolio","es":""},"correct":false,"feedback":{"fr":"","en":"The size of the sale does not remove the need for analysis: its reasons, frequency and value are examined (IFRS 9).","es":""}},{"id":"D","text":{"fr":"","en":"The collection model can be maintained: an isolated sale with no other sale planned does not change the objective, to be documented with its reasons","es":""},"correct":true}],"id":"p2","dimension":"PROFESSIONAL_JUDGMENT"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000039","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.CLASSIF_ASSETS.OVERVIEW"],"dimension":"RECOGNITION","format":"ERROR_SPOT","context":"RETAIL","tested_point":"CATEGORIES_ERROR_SPOT","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS9.000005","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000005","section_id":"rule-categories"},"references":["IFRS 9 §4.1.1","IFRS 9 §4.1.4"],"exercise":{"prompt":{"fr":"","en":"A student summarises the classification of financial assets. Spot the erroneous statement.","es":""},"explanation":{"fr":"","en":"Rule to remember: both conditions, model and SPPI flows, are cumulative for amortised cost and FVOCI (IFRS 9).","es":""},"common_error":{"fr":"","en":"Letting the holding intention override the cash flow test.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"An asset held to collect contractual cash flows and whose flows are SPPI is measured at amortised cost.","es":""},"erroneous":false},{"id":"S2","text":{"fr":"","en":"The FVTPL category receives the assets that meet neither the amortised cost nor the FVOCI conditions.","es":""},"erroneous":false},{"id":"S3","text":{"fr":"","en":"A portfolio managed and evaluated on a fair value basis is not held to collect contractual cash flows.","es":""},"erroneous":false},{"id":"S4","text":{"fr":"","en":"An asset whose cash flows are not SPPI stays at amortised cost if the entity intends to keep it to maturity.","es":""},"erroneous":true,"correction":{"fr":"","en":"Without SPPI flows, amortised cost and FVOCI are ruled out: the asset is measured at FVTPL, whatever the holding intention (IFRS 9).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000040","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.CLASSIF_ASSETS.OVERVIEW"],"dimension":"RULE_KNOWLEDGE","format":"FILL_BLANK","context":"AUTOMOTIVE","tested_point":"CATEGORIES_FILL_BLANK","difficulty":"BEGINNER","estimated_time_s":70,"lesson_id":"LS.IFRS9.000005","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000005","section_id":"rule-categories"},"references":["IFRS 9 §4.1.1","IFRS 9 §4.1.4"],"exercise":{"prompt":{"fr":"","en":"Complete the amortised cost rule.","es":""},"explanation":{"fr":"","en":"Rule to remember: amortised cost = collection model and SPPI flows (IFRS 9).","es":""},"common_error":{"fr":"","en":"Forgetting that the two conditions are cumulative.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"A financial asset is measured at amortised cost if the model is to {{modele}} the contractual cash flows and if these flows are {{flux}}.","es":""},"blanks":[{"id":"modele","mode":"CHOICE","choices":[{"id":"COLLECT","text":{"fr":"","en":"collect","es":""}},{"id":"SELL","text":{"fr":"","en":"sell","es":""}},{"id":"TRADE","text":{"fr":"","en":"trade","es":""}}],"answer":"COLLECT"},{"id":"flux","mode":"CHOICE","choices":[{"id":"ANY","text":{"fr":"","en":"of any kind","es":""}},{"id":"SPPI","text":{"fr":"","en":"SPPI","es":""}},{"id":"VAR","text":{"fr":"","en":"indexed to a stock index","es":""}}],"answer":"SPPI"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000041","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.CLASSIF_ASSETS.SPPI_TEST"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"BANKING","tested_point":"SPPI_CLAUSE_FAIL","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IFRS9.000006","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000006","section_id":"rule-sppi"},"references":["IFRS 9 §B4.1.7B"],"exercise":{"prompt":{"fr":"","en":"Fandrel bank holds a loan whose return includes a supplement tied to the gold price. What can be said of the contractual cash flow test?","es":""},"explanation":{"fr":"","en":"Rule to remember: a factor foreign to a basic loan in the cash flows makes the test fail, hence FVTPL (IFRS 9).","es":""},"common_error":{"fr":"","en":"Thinking holding intention corrects a failed test.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The loan fails the test: a factor foreign to a basic loan enters the cash flows, hence FVTPL measurement","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The loan is SPPI, since the supplement pays for the market risk borne by the lender","es":""},"correct":false,"feedback":{"fr":"","en":"A market risk foreign to a basic loan is not part of interest within the meaning of the test (IFRS 9).","es":""}},{"id":"C","text":{"fr":"","en":"The loan is SPPI if the supplement stays below the base rate","es":""},"correct":false,"feedback":{"fr":"","en":"The test sets no cap: it is the nature of the factor that matters (IFRS 9).","es":""}},{"id":"D","text":{"fr":"","en":"The loan fails the test but stays at amortised cost if the bank holds it to maturity, provided its intention is documented","es":""},"correct":false,"feedback":{"fr":"","en":"A non-SPPI asset goes to FVTPL, whatever the holding intention (IFRS 9).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000042","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.CLASSIF_ASSETS.SPPI_TEST"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"MEDIA","tested_point":"SPPI_CLASSIFICATION_ITEMS","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS9.000006","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000006","section_id":"rule-sppi"},"references":["IFRS 9 §B4.1.7B"],"exercise":{"prompt":{"fr":"","en":"Classify each cash flow feature of a loan according to whether or not it is consistent with SPPI cash flows.","es":""},"explanation":{"fr":"","en":"Rule to remember: time, credit risk, basic lending costs and a margin are SPPI; a foreign factor is not (IFRS 9).","es":""},"common_error":{"fr":"","en":"Accepting any additional remuneration clause as interest.","es":""},"format":"CLASSIFICATION","categories":[{"id":"OK","text":{"fr":"","en":"Consistent with the SPPI test","es":""}},{"id":"KO","text":{"fr":"","en":"Makes the SPPI test fail","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Interest computed at 5% on the principal outstanding","es":""},"category":"OK"},{"id":"I2","text":{"fr":"","en":"Repayment of principal in ten equal annual instalments","es":""},"category":"OK"},{"id":"I3","text":{"fr":"","en":"Interest supplement equal to 10% of the rise in the national stock index","es":""},"category":"KO"},{"id":"I4","text":{"fr":"","en":"Margin of 0.8 points covering the loan's administration costs","es":""},"category":"OK"},{"id":"I5","text":{"fr":"","en":"Final repayment increased by a share of the borrower's net profit","es":""},"category":"KO"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000043","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.CLASSIF_ASSETS.SPPI_TEST"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"REAL_ESTATE","tested_point":"PRINCIPAL_MAY_VARY","difficulty":"BEGINNER","estimated_time_s":35,"lesson_id":"LS.IFRS9.000006","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000006","section_id":"rule-sppi"},"references":["IFRS 9 §B4.1.7B"],"exercise":{"prompt":{"fr":"","en":"The principal used for the SPPI test is the fair value of the asset at initial recognition and it may change during the life of the asset, for example because of repayments.","es":""},"explanation":{"fr":"","en":"Rule to remember: the principal is the initial fair value and may change with repayments (IFRS 9).","es":""},"common_error":{"fr":"","en":"Believing partial repayments make the test fail.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000044","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.CLASSIF_ASSETS.SPPI_TEST","IFRS9.CLASSIF_ASSETS.BUSINESS_MODEL","IFRS9.CLASSIF_ASSETS.OVERVIEW"],"dimension":"ANALYSIS","format":"MINI_CASE","context":"ENERGY","tested_point":"SPPI_THEN_CATEGORY","difficulty":"INTERMEDIATE","estimated_time_s":180,"lesson_id":"LS.IFRS9.000006","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000006","section_id":"example"},"references":["IFRS 9 §B4.1.7B","IFRS 9 §4.1.2","IFRS 9 §4.1.2A"],"exercise":{"prompt":{"fr":"","en":"Classify Gorvel's three investments.","es":""},"explanation":{"fr":"","en":"Rule to remember: a collection model leads to amortised cost for assets whose flows are SPPI (IFRS 9).","es":""},"common_error":{"fr":"","en":"Treating the portfolio as a block.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Gorvel manages a portfolio of investments kept to collect contractual cash flows, with no sale planned. It includes: (1) a 4% fixed bond repayable at maturity; (2) a loan whose interest is increased by a share of the performance of an equity fund; (3) a fixed-coupon bond with a margin covering the lender's administration costs.","es":""},"parts":[{"prompt":{"fr":"","en":"Which of these investments fails the SPPI test?","es":""},"explanation":{"fr":"","en":"Rule to remember: a share in equity performance makes the test fail, whatever the model (IFRS 9).","es":""},"common_error":{"fr":"","en":"Confusing a collection model with compliance of the cash flows.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The 4% fixed bond, because its principal is repaid in one go at maturity","es":""},"correct":false,"feedback":{"fr":"","en":"A bullet repayment is still principal and interest: the test is passed (IFRS 9).","es":""}},{"id":"B","text":{"fr":"","en":"The fixed-coupon bond with an administration-cost margin, because the margin exceeds pure interest","es":""},"correct":false,"feedback":{"fr":"","en":"Interest includes basic lending costs and a margin: this bond is SPPI (IFRS 9).","es":""}},{"id":"C","text":{"fr":"","en":"The loan whose interest is increased by a share of the performance of an equity fund","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The three investments are SPPI since the portfolio is managed for collection","es":""},"correct":false,"feedback":{"fr":"","en":"The test is independent of the business model and is done security by security (IFRS 9).","es":""}}],"id":"p1","dimension":"RECOGNITION"},{"prompt":{"fr":"","en":"Give the measurement category of each investment.","es":""},"explanation":{"fr":"","en":"Rule to remember: collection model and SPPI flows: amortised cost; non-SPPI flows: FVTPL (IFRS 9).","es":""},"common_error":{"fr":"","en":"Applying the portfolio's category to the indexed loan.","es":""},"format":"CLASSIFICATION","categories":[{"id":"AC","text":{"fr":"","en":"Amortised cost","es":""}},{"id":"PL","text":{"fr":"","en":"FVTPL","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"4% fixed bond repayable at maturity","es":""},"category":"AC"},{"id":"I2","text":{"fr":"","en":"Loan increased by a share of the performance of an equity fund","es":""},"category":"PL"},{"id":"I3","text":{"fr":"","en":"Fixed-coupon bond with an administration-cost margin","es":""},"category":"AC"}],"id":"p2","dimension":"APPLICATION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000045","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.CLASSIF_ASSETS.SPPI_TEST"],"dimension":"RECOGNITION","format":"MULTIPLE_CHOICE","context":"TRANSPORT","tested_point":"INTEREST_COMPONENTS","difficulty":"INTERMEDIATE","estimated_time_s":80,"lesson_id":"LS.IFRS9.000006","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000006","section_id":"rule-sppi"},"references":["IFRS 9 §B4.1.7B"],"exercise":{"prompt":{"fr":"","en":"Which components may be part of interest within the meaning of the SPPI test? More than one answer possible.","es":""},"explanation":{"fr":"","en":"Rule to remember: interest covers time value, credit risk and other basic lending risks and costs with a margin (IFRS 9).","es":""},"common_error":{"fr":"","en":"Retaining any extra return as interest.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Consideration for the time value of money","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Consideration for the credit risk on the principal outstanding","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A share of the capital gain on the financed building","es":""},"correct":false,"feedback":{"fr":"","en":"A share in the value of an underlying asset is foreign to a basic loan (IFRS 9).","es":""}},{"id":"D","text":{"fr":"","en":"A margin covering the holding and liquidity costs of the loan","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"A bonus linked to the borrower's share price","es":""},"correct":false,"feedback":{"fr":"","en":"The share price exposes the cash flows to a risk foreign to a basic loan (IFRS 9).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000046","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.CLASSIF_ASSETS.SPPI_CONTRACT_FEATURES"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"TELECOM","tested_point":"BENCHMARK_INSTRUMENT","difficulty":"ADVANCED","estimated_time_s":60,"lesson_id":"LS.IFRS9.000006","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000006","section_id":"rule-features"},"references":["IFRS 9 §B4.1.9D","IFRS 9 §B4.1.12"],"exercise":{"prompt":{"fr":"","en":"The rate of a Harlan loan is reset monthly but indexed to a five-year rate. How is the modification of the time value assessed?","es":""},"explanation":{"fr":"","en":"Rule to remember: if the cash flows could be significantly different from those of the benchmark instrument, the asset is measured at FVTPL (IFRS 9).","es":""},"common_error":{"fr":"","en":"Looking for a numerical threshold that the standard does not provide.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"By a percentage gap between the reset rate and the market rate set by the standard, read at each reporting date","es":""},"correct":false,"feedback":{"fr":"","en":"The standard sets no percentage gap: it calls for a comparison with a benchmark instrument (IFRS 9).","es":""}},{"id":"B","text":{"fr":"","en":"By comparing the contractual cash flows with those of a benchmark instrument without the modification","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"By checking that the rate stays above the inflation rate for the period","es":""},"correct":false,"feedback":{"fr":"","en":"Inflation is not the criterion: the comparison is on the flows of a benchmark instrument (IFRS 9).","es":""}},{"id":"D","text":{"fr":"","en":"By accepting the clause as soon as it is customary on the local credit market","es":""},"correct":false,"feedback":{"fr":"","en":"Market custom does not replace the comparison of cash flows (IFRS 9).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000047","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.CLASSIF_ASSETS.SPPI_CONTRACT_FEATURES"],"dimension":"RECOGNITION","format":"ERROR_SPOT","context":"SOFTWARE","tested_point":"PREPAYMENT_EXCEPTION","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IFRS9.000006","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000006","section_id":"rule-features"},"references":["IFRS 9 §B4.1.9D","IFRS 9 §B4.1.12"],"exercise":{"prompt":{"fr":"","en":"An analyst summarises the prepayment exception. Spot the erroneous statement.","es":""},"explanation":{"fr":"","en":"Rule to remember: the exception requires a premium or discount at origination, a repayment close to par plus accrued interest and a clause of insignificant fair value (IFRS 9).","es":""},"common_error":{"fr":"","en":"Forgetting the condition of a premium or discount at origination.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"The asset must have been acquired or originated at an amount equal to par, with no premium or discount.","es":""},"erroneous":true,"correction":{"fr":"","en":"The exception assumes on the contrary that the asset was acquired or originated at a premium or discount to par (IFRS 9).","es":""}},{"id":"S2","text":{"fr":"","en":"The exception concerns a prepayable asset that fails the test solely because of this clause.","es":""},"erroneous":false},{"id":"S3","text":{"fr":"","en":"The prepayment amount must substantially reflect par plus accrued interest.","es":""},"erroneous":false},{"id":"S4","text":{"fr":"","en":"The fair value of the prepayment clause must be insignificant at initial recognition.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000048","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.CLASSIF_ASSETS.NONRECOURSE_LINKED","IFRS9.CLASSIF_ASSETS.SPPI_TEST"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"REAL_ESTATE","tested_point":"TRANCHE_LOOK_THROUGH","difficulty":"EXPERT","estimated_time_s":180,"lesson_id":"LS.IFRS9.000006","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000006","section_id":"rule-nonrecourse"},"references":["IFRS 9 §B4.1.7B"],"exercise":{"prompt":{"fr":"","en":"Analyse the tranche held by Wendrel.","es":""},"explanation":{"fr":"","en":"Rule to remember: a tranche is analysed on a look-through basis; it passes the test only if its three conditions are met (IFRS 9).","es":""},"common_error":{"fr":"","en":"Examining the tranche without looking at the underlying pool.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Wendrel holds the junior tranche of a securitisation of fixed-rate home loans. The underlying pool comprises instruments with SPPI cash flows. The tranche's own terms provide for interest and principal with no other factor. However, the tranche absorbs the first losses of the pool: its exposure to credit risk is higher than that of the underlying pool taken as a whole.","es":""},"parts":[{"prompt":{"fr":"","en":"Which condition of the tranche is not met?","es":""},"explanation":{"fr":"","en":"Rule to remember: the tranche's exposure to credit risk must not exceed that of the underlying pool (IFRS 9).","es":""},"common_error":{"fr":"","en":"Validating the tranche because the underlying loans are SPPI.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The tranche's own terms do not give principal and interest cash flows, taken alone","es":""},"correct":false,"feedback":{"fr":"","en":"The case states that the tranche's own terms contain no other factor (IFRS 9).","es":""}},{"id":"B","text":{"fr":"","en":"The underlying pool does not include instruments with SPPI cash flows","es":""},"correct":false,"feedback":{"fr":"","en":"The case states on the contrary that the pool is made up of SPPI instruments (IFRS 9).","es":""}},{"id":"C","text":{"fr":"","en":"The structure has a single tranche and is therefore not a linked instrument","es":""},"correct":false,"feedback":{"fr":"","en":"The case describes a junior tranche, hence several tranches (IFRS 9).","es":""}},{"id":"D","text":{"fr":"","en":"The tranche's exposure to credit risk does not exceed that of the underlying pool","es":""},"correct":true}],"id":"p1","dimension":"ANALYSIS"},{"prompt":{"fr":"","en":"What is the consequence for the classification of the tranche?","es":""},"explanation":{"fr":"","en":"Rule to remember: a tranche whose credit exposure exceeds that of the pool fails the test and goes to FVTPL (IFRS 9).","es":""},"common_error":{"fr":"","en":"Believing FVOCI is less demanding on cash flows.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The tranche stays at amortised cost if Wendrel holds it to collect the cash flows","es":""},"correct":false,"feedback":{"fr":"","en":"A tranche that fails the test is measured at FVTPL, whatever the business model (IFRS 9).","es":""}},{"id":"B","text":{"fr":"","en":"The tranche moves to FVOCI, which accepts higher credit exposures","es":""},"correct":false,"feedback":{"fr":"","en":"FVOCI also requires SPPI flows; failing the test rules out both categories (IFRS 9).","es":""}},{"id":"C","text":{"fr":"","en":"The classification of the tranche depends on the prior derecognition of the underlying loans","es":""},"correct":false,"feedback":{"fr":"","en":"Derecognition of the underlying loans has no bearing on the classification of the tranche held (IFRS 9).","es":""}},{"id":"D","text":{"fr":"","en":"The tranche's cash flows are not SPPI: it is measured at FVTPL","es":""},"correct":true}],"id":"p2","dimension":"PROFESSIONAL_JUDGMENT"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000049","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.CLASSIF_ASSETS.EQUITY_ELECTION"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"AGRIFOOD","tested_point":"EQUITY_DEFAULT_FVTPL","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IFRS9.000007","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000007","section_id":"understand"},"references":["IFRS 9 §5.7.5"],"exercise":{"prompt":{"fr":"","en":"The Valdorin cooperative holds shares of a listed company, without having made any particular election. How are they measured?","es":""},"explanation":{"fr":"","en":"Rule to remember: without an election, equity instruments are at FVTPL (IFRS 9).","es":""},"common_error":{"fr":"","en":"Retaining amortised cost for any long-held investment.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"At amortised cost, since the shares are kept for the long term","es":""},"correct":false,"feedback":{"fr":"","en":"Shares have no principal and interest cash flows: amortised cost is ruled out (IFRS 9).","es":""}},{"id":"B","text":{"fr":"","en":"At fair value through other comprehensive income, like a long-term investment","es":""},"correct":false,"feedback":{"fr":"","en":"Presentation in OCI requires an irrevocable election that the cooperative has not made (IFRS 9).","es":""}},{"id":"C","text":{"fr":"","en":"At fair value through profit or loss, the default category for shares","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"At historical cost, since a share price is not a reliable measure","es":""},"correct":false,"feedback":{"fr":"","en":"The standard measures shares at fair value; historical cost is not a measurement category (IFRS 9).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000050","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.CLASSIF_ASSETS.EQUITY_ELECTION"],"dimension":"RULE_KNOWLEDGE","format":"MULTIPLE_CHOICE","context":"PHARMA","tested_point":"ELECTION_CONDITIONS","difficulty":"INTERMEDIATE","estimated_time_s":80,"lesson_id":"LS.IFRS9.000007","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000007","section_id":"rule-election"},"references":["IFRS 9 §5.7.5"],"exercise":{"prompt":{"fr":"","en":"Which conditions characterise the election to present the fair value changes of shares in OCI? More than one answer possible.","es":""},"explanation":{"fr":"","en":"Rule to remember: irrevocable election, instrument by instrument, at inception, excluding holding for trading (IFRS 9).","es":""},"common_error":{"fr":"","en":"Treating the election as a yearly choice.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It can be revoked if the entity changes its mind at the next year end","es":""},"correct":false,"feedback":{"fr":"","en":"The election is irrevocable (IFRS 9).","es":""}},{"id":"B","text":{"fr":"","en":"It is made on initial recognition of the investment","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It concerns one instrument at a time, not a whole portfolio","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"It excludes investments held for trading","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"It extends to debt instruments to avoid the impairment model","es":""},"correct":false,"feedback":{"fr":"","en":"The election concerns equity instruments; debt instruments follow the business model and the SPPI test (IFRS 9).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000051","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.CLASSIF_ASSETS.EQUITY_ELECTION"],"dimension":"CALCULATION","format":"CALCULATION","context":"LUXURY","tested_point":"ELECTION_OCI_AMOUNTS","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS9.000007","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000007","section_id":"numeric-election"},"references":["IFRS 9 §5.7.5"],"exercise":{"prompt":{"fr":"","en":"Parvel acquires shares for €320,000 for which it makes the OCI election. Fair value at year end N: €355,000; at year end N+1: €338,000. Calculate the amounts. Case convention: no fees, no dividend.","es":""},"explanation":{"fr":"","en":"N: 355,000 - 320,000 = €35,000 in OCI. N+1: 338,000 - 355,000 = -€17,000 in OCI. Cumulative: 35,000 - 17,000 = €18,000. Profit or loss receives no fair value change: effect of €0 (IFRS 9).","es":""},"common_error":{"fr":"","en":"Running the N+1 decrease through profit or loss.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Acquisition cost","es":""},"value":"320000","unit":"EUR"},{"label":{"fr":"","en":"Fair value at year end N","es":""},"value":"355000","unit":"EUR"},{"label":{"fr":"","en":"Fair value at year end N+1","es":""},"value":"338000","unit":"EUR"}],"steps":[{"id":"s1","label":{"fr":"","en":"Change in OCI in N (+ gain)","es":""},"answer":35000,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Change in OCI in N+1 (- loss)","es":""},"answer":-17000,"tolerance":0,"unit":"EUR"},{"id":"s3","label":{"fr":"","en":"Cumulative OCI at year end N+1","es":""},"answer":18000,"tolerance":0,"unit":"EUR"},{"id":"s4","label":{"fr":"","en":"Total effect on profit or loss of N and N+1","es":""},"answer":0,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Change in OCI in N (+ gain)","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value at year end N","es":""},"value":355000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Acquisition cost","es":""},"value":320000,"unit":"EUR"}],"result":35000,"unit":"EUR"},{"step":"s2","meaning":{"fr":"","en":"Change in OCI in N+1 (- loss)","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value at year end N+1","es":""},"value":338000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Fair value at year end N","es":""},"value":355000,"unit":"EUR"}],"result":-17000,"unit":"EUR"}],"rationale":{"fr":"","en":"Profit or loss receives no fair value change: effect of €0 (IFRS 9).","es":""},"references":["REF.IFRS9.5.7.5"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000052","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.CLASSIF_ASSETS.EQUITY_ELECTION"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"TOURISM","tested_point":"ELECTION_REMEASUREMENT_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS9.000007","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000007","section_id":"entry-election"},"references":["IFRS 9 §5.7.5"],"exercise":{"prompt":{"fr":"","en":"At year end, the fair value of shares held by Rimelle falls from €150,000 to €141,000. Rimelle made the OCI election for these shares. Post the remeasurement entry.","es":""},"explanation":{"fr":"","en":"150,000 - 141,000 = €9,000 decrease: debit OCI, credit investment; no charge in profit or loss with the election (IFRS 9).","es":""},"common_error":{"fr":"","en":"Debiting profit or loss as for an FVTPL asset.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"inv","text":{"fr":"","en":"Equity investment (OCI election)","es":""}},{"id":"oci","text":{"fr":"","en":"OCI (fair value reserve)","es":""}},{"id":"pl","text":{"fr":"","en":"Fair value loss (profit or loss)","es":""}},{"id":"cash","text":{"fr":"","en":"Cash","es":""}}],"lines":[{"id":"l1","account":"oci","side":"DEBIT","amount":9000,"given":["account"]},{"id":"l2","account":"inv","side":"CREDIT","amount":9000,"given":["account"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000053","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.CLASSIF_ASSETS.EQUITY_ELECTION","IFRS9.DEFINITIONS.HELD_FOR_TRADING"],"dimension":"APPLICATION","format":"MINI_CASE","context":"BANKING","tested_point":"ELECTION_VS_HELD_FOR_TRADING","difficulty":"INTERMEDIATE","estimated_time_s":180,"lesson_id":"LS.IFRS9.000007","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000007","section_id":"rule-election"},"references":["IFRS 9 §5.7.5"],"exercise":{"prompt":{"fr":"","en":"Examine the eligibility of Solvik's investments for the OCI election.","es":""},"explanation":{"fr":"","en":"Rule to remember: election for the strategic investment, FVTPL for the trading portfolio (IFRS 9).","es":""},"common_error":{"fr":"","en":"Not distinguishing strategic from trading investments.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Solvik holds two equity investments. The first, 15% of an industrial partner, is kept for strategic reasons. The second belongs to a portfolio managed by the trading room, with a short-term profit-taking pattern.","es":""},"parts":[{"prompt":{"fr":"","en":"Which investment may be the subject of the OCI election?","es":""},"explanation":{"fr":"","en":"Rule to remember: the election is ruled out for investments held for trading (IFRS 9).","es":""},"common_error":{"fr":"","en":"Opening the election to any equity instrument.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The first, which is not held for trading","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Both, because they are equity instruments","es":""},"correct":false,"feedback":{"fr":"","en":"The second investment is held for trading, which rules out the election (IFRS 9).","es":""}},{"id":"C","text":{"fr":"","en":"The second, since its fair value monitoring makes presentation in OCI easier","es":""},"correct":false,"feedback":{"fr":"","en":"Fair value monitoring is a sign of holding for trading, hence of exclusion (IFRS 9).","es":""}},{"id":"D","text":{"fr":"","en":"The election is closed to both, since it is reserved for stakes above 20%","es":""},"correct":false,"feedback":{"fr":"","en":"No shareholding threshold appears in the election rule (IFRS 9).","es":""}}],"id":"p1","dimension":"RECOGNITION"},{"prompt":{"fr":"","en":"If Solvik sells the first investment with a cumulative gain in OCI, that gain is reclassified to profit or loss on sale.","es":""},"explanation":{"fr":"","en":"Rule to remember: the cumulative OCI of elected shares is not reclassified to profit or loss (IFRS 9).","es":""},"common_error":{"fr":"","en":"Applying the recycling of debt instruments.","es":""},"format":"TRUE_FALSE","answer":false,"id":"p2","dimension":"APPLICATION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000054","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.CLASSIF_ASSETS.FAIR_VALUE_OPTION"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"INSURANCE","tested_point":"FVO_MISMATCH_CASE","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS9.000007","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000007","section_id":"rule-fvo"},"references":["IFRS 9 §4.1.5"],"exercise":{"prompt":{"fr":"","en":"Odrel funds a loan portfolio (amortised cost) with a liability it has designated at FVTPL whose changes offset economically those of the loans. Which decision is consistent?","es":""},"explanation":{"fr":"","en":"Rule to remember: designation at FVTPL at inception reduces the accounting mismatch (IFRS 9).","es":""},"common_error":{"fr":"","en":"Designating after the fact once the asymmetry is observed.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Designating the loans at FVTPL later, when value differences appear in profit or loss, once the portfolio is built up","es":""},"correct":false,"feedback":{"fr":"","en":"Designation is made on initial recognition; it cannot happen after the fact (IFRS 9).","es":""}},{"id":"B","text":{"fr":"","en":"Irrevocably designating the loans at FVTPL as soon as they are recognised to reduce the mismatch","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Reclassifying the loans to FVOCI to offset the change in the liability in OCI","es":""},"correct":false,"feedback":{"fr":"","en":"FVOCI depends on the model and the SPPI test; it does not settle an asymmetry by mere choice (IFRS 9).","es":""}},{"id":"D","text":{"fr":"","en":"Leaving the loans at amortised cost, a mismatch not justifying designation","es":""},"correct":false,"feedback":{"fr":"","en":"The option exists precisely to eliminate or reduce a significant accounting mismatch (IFRS 9).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000055","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.CLASSIF_ASSETS.EQUITY_ELECTION"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"INSURANCE","tested_point":"ELECTION_NO_RECYCLING","difficulty":"BEGINNER","estimated_time_s":35,"lesson_id":"LS.IFRS9.000007","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000007","section_id":"rule-election"},"references":["IFRS 9 §5.7.5"],"exercise":{"prompt":{"fr":"","en":"For a share for which the entity elected to present fair value changes in other comprehensive income, those amounts are not reclassified to profit or loss on disposal.","es":""},"explanation":{"fr":"","en":"Rule to remember: with the election, fair value changes stay in other comprehensive income and are not recycled to profit or loss (IFRS 9).","es":""},"common_error":{"fr":"","en":"Applying to the election the recycling that exists for debt instruments.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000056","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.CLASSIF_LIABS.AMORTISED_COST_DEFAULT"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"LIABILITIES_CLASSIFICATION_ITEMS","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS9.000008","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000008","section_id":"rule-default"},"references":["IFRS 9 §4.2.1"],"exercise":{"prompt":{"fr":"","en":"Classify each financial liability of Jarvel according to its subsequent measurement treatment.","es":""},"explanation":{"fr":"","en":"Rule to remember: amortised cost by default; exceptions notably for derivatives and financial guarantee contracts (IFRS 9).","es":""},"common_error":{"fr":"","en":"Classifying a derivative liability at amortised cost.","es":""},"format":"CLASSIFICATION","categories":[{"id":"AC","text":{"fr":"","en":"Amortised cost (default rule)","es":""}},{"id":"EX","text":{"fr":"","en":"Exception to amortised cost","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Debt to a raw materials supplier","es":""},"category":"AC"},{"id":"I2","text":{"fr":"","en":"Five-year fixed-rate bank loan","es":""},"category":"AC"},{"id":"I3","text":{"fr":"","en":"Forward currency contract with a negative value","es":""},"category":"EX"},{"id":"I4","text":{"fr":"","en":"Financial guarantee contract issued in favour of a banking subsidiary","es":""},"category":"EX"},{"id":"I5","text":{"fr":"","en":"Ordinary bond issued at par","es":""},"category":"AC"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000057","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.CLASSIF_LIABS.AMORTISED_COST_DEFAULT"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"TRANSPORT","tested_point":"LIABILITY_NO_BUSINESS_MODEL","difficulty":"BEGINNER","estimated_time_s":35,"lesson_id":"LS.IFRS9.000008","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000008","section_id":"understand"},"references":["IFRS 9 §4.2.1"],"exercise":{"prompt":{"fr":"","en":"To classify a financial liability, the entity must first assess its business model for holding the debt.","es":""},"explanation":{"fr":"","en":"Rule to remember: classification of a liability follows a default rule, amortised cost, and listed exceptions; there is no business model test (IFRS 9).","es":""},"common_error":{"fr":"","en":"Transposing the asset classification reasoning to liabilities.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000058","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.CLASSIF_LIABS.OWN_CREDIT"],"dimension":"CALCULATION","format":"CALCULATION","context":"MEDIA","tested_point":"OWN_CREDIT_SPLIT","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS9.000008","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000008","section_id":"numeric-own-credit"},"references":["IFRS 9 §5.7.7"],"exercise":{"prompt":{"fr":"","en":"Nolvik's liability designated at FVTPL sees its fair value increase by €90,000 over the year (loss). According to Nolvik's documented analysis (case data), €35,000 of this change is attributable to a fall in its own credit risk; no accounting mismatch is created by presentation in OCI.","es":""},"explanation":{"fr":"","en":"Own credit risk portion: €35,000 in OCI; the rest: 90,000 - 35,000 = €55,000 in profit or loss (IFRS 9, para. 5.7.7).","es":""},"common_error":{"fr":"","en":"Running the whole change through profit or loss as for an asset.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Total fair value change (loss)","es":""},"value":"90000","unit":"EUR"},{"label":{"fr":"","en":"Portion due to own credit risk","es":""},"value":"35000","unit":"EUR"}],"steps":[{"id":"s1","label":{"fr":"","en":"Loss presented in OCI","es":""},"answer":35000,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Loss presented in profit or loss","es":""},"answer":55000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s2","meaning":{"fr":"","en":"Loss presented in profit or loss","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Total fair value change (loss)","es":""},"value":90000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Portion due to own credit risk","es":""},"value":35000,"unit":"EUR"}],"result":55000,"unit":"EUR"}],"references":["REF.IFRS9.5.7.7"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000059","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.CLASSIF_LIABS.OWN_CREDIT"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"TELECOM","tested_point":"OWN_CREDIT_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS9.000008","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000008","section_id":"numeric-own-credit"},"references":["IFRS 9 §5.7.7"],"exercise":{"prompt":{"fr":"","en":"The fair value of Peltan's designated liability falls by €64,000, of which €24,000 is attributable to its own credit risk (case data). No mismatch is created. Post the entry.","es":""},"explanation":{"fr":"","en":"64,000 - 24,000 = €40,000 gain in profit or loss; €24,000 in OCI, never recycled; the liability decreases by €64,000 (IFRS 9, para. 5.7.7).","es":""},"common_error":{"fr":"","en":"Crediting the whole gain to profit or loss.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"liab","text":{"fr":"","en":"Financial liability designated at FVTPL","es":""}},{"id":"pl","text":{"fr":"","en":"Fair value gain (profit or loss)","es":""}},{"id":"oci","text":{"fr":"","en":"OCI (own credit risk)","es":""}},{"id":"cash","text":{"fr":"","en":"Cash","es":""}}],"lines":[{"id":"l1","account":"liab","side":"DEBIT","amount":64000,"given":["account","side"]},{"id":"l2","account":"pl","side":"CREDIT","amount":40000,"given":["account"]},{"id":"l3","account":"oci","side":"CREDIT","amount":24000,"given":["account"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000060","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.CLASSIF_LIABS.OWN_CREDIT"],"dimension":"APPLICATION","format":"MINI_CASE","context":"BANKING","tested_point":"OWN_CREDIT_MISMATCH_EXCEPTION","difficulty":"INTERMEDIATE","estimated_time_s":180,"lesson_id":"LS.IFRS9.000008","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000008","section_id":"rule-own-credit"},"references":["IFRS 9 §5.7.7"],"exercise":{"prompt":{"fr":"","en":"Analyse the treatment of Ruvel's designated debt.","es":""},"explanation":{"fr":"","en":"Rule to remember: the OCI rule for own credit risk gives way to an accounting mismatch (IFRS 9).","es":""},"common_error":{"fr":"","en":"Ignoring the presentation effect on the offsetting asset.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Ruvel designated at FVTPL a loan that funds a portfolio of assets measured at FVTPL in profit or loss. The fair value of the loan fell by €50,000, of which €20,000 is attributable to its own credit risk (case data). Presenting this €20,000 in OCI would create a gap in profit or loss, since the offsetting asset is in profit or loss.","es":""},"parts":[{"prompt":{"fr":"","en":"Where does Ruvel present the €50,000 change?","es":""},"explanation":{"fr":"","en":"Rule to remember: if presentation in OCI creates or enlarges an accounting mismatch, the whole change goes to profit or loss (IFRS 9).","es":""},"common_error":{"fr":"","en":"Applying the general rule without testing for a mismatch.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"€50,000 in profit or loss, because presentation in OCI would create an accounting mismatch","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"€30,000 in profit or loss and €20,000 in OCI, under the general own credit risk rule","es":""},"correct":false,"feedback":{"fr":"","en":"The general rule gives way when presentation in OCI creates or enlarges a mismatch in profit or loss (IFRS 9).","es":""}},{"id":"C","text":{"fr":"","en":"€50,000 in OCI, the fair value change of a designated liability being presented in OCI","es":""},"correct":false,"feedback":{"fr":"","en":"Only the own credit risk portion goes to OCI, and not in case of a mismatch (IFRS 9).","es":""}},{"id":"D","text":{"fr":"","en":"€20,000 directly in equity, without passing through OCI or profit or loss","es":""},"correct":false,"feedback":{"fr":"","en":"There is no direct presentation of this portion in equity (IFRS 9).","es":""}}],"id":"p1","dimension":"APPLICATION"},{"prompt":{"fr":"","en":"What amount of gain does Ruvel present in profit or loss?","es":""},"explanation":{"fr":"","en":"The whole fall of €50,000 goes to profit or loss, the €20,000 own credit risk portion not being presented in OCI in this case (IFRS 9).","es":""},"common_error":{"fr":"","en":"Deducting the own credit risk portion.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"a","label":{"fr":"","en":"Gain in profit or loss","es":""},"answer":50000,"tolerance":0,"unit":"EUR"}],"id":"p2","dimension":"CALCULATION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000061","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.INTERACTIONS.IAS32"],"dimension":"ANALYSIS","format":"SINGLE_CHOICE","context":"SOFTWARE","tested_point":"IAS32_BOUNDARY","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS9.000008","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000008","section_id":"rule-ias32"},"references":["IFRS 9 §4.2.1"],"exercise":{"prompt":{"fr":"","en":"An entity issues an instrument and hesitates between \"financial liability\" and \"equity\". Which standard settles this question first?","es":""},"explanation":{"fr":"","en":"Rule to remember: the liability or equity nature falls under IAS 32; IFRS 9 then handles the classification and measurement of the liability.","es":""},"common_error":{"fr":"","en":"Looking in IFRS 9 for the liability or equity criterion.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The financial instruments standard, IFRS 9, since it sets the classification and measurement of financial instruments of the entity","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 9 comes in once the instrument is established as a liability; the distinction falls under IAS 32.","es":""}},{"id":"B","text":{"fr":"","en":"The revenue standard, IFRS 15, since the issue produces consideration received from a third party","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 15 deals with contracts with customers, not the issue of financial instruments.","es":""}},{"id":"C","text":{"fr":"","en":"The liabilities and equity standard, IAS 32, which deals with the distinction between financial liabilities and equity","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The fair value standard, IFRS 13, since the choice depends on the fair value of the instrument on issue","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 13 measures fair value; it does not decide the nature of the instrument.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000062","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.CLASSIF_LIABS.FAIR_VALUE_OPTION"],"dimension":"RULE_KNOWLEDGE","format":"ERROR_SPOT","context":"RETAIL","tested_point":"LIABILITY_FVO_CONDITIONS","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS9.000008","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000008","section_id":"rule-fvo"},"references":["IFRS 9 §4.2.2"],"exercise":{"prompt":{"fr":"","en":"A trainee summarises the fair value option for liabilities. Spot the erroneous statement.","es":""},"explanation":{"fr":"","en":"Rule to remember: designation of a liability at FVTPL is made at inception and remains irrevocable (IFRS 9, para. 4.2.2).","es":""},"common_error":{"fr":"","en":"Treating designation as a yearly option.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"Designating a liability at FVTPL is made on initial recognition.","es":""},"erroneous":false},{"id":"S2","text":{"fr":"","en":"The designation is irrevocable.","es":""},"erroneous":false},{"id":"S3","text":{"fr":"","en":"The entity may cancel the designation at the year end if the accounting mismatch disappears.","es":""},"erroneous":true,"correction":{"fr":"","en":"The designation is irrevocable: it cannot be cancelled if the mismatch disappears (IFRS 9, para. 4.2.2).","es":""}},{"id":"S4","text":{"fr":"","en":"The accepted reason is the elimination or significant reduction of an accounting mismatch.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000063","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.MEASUREMENT.EFFECTIVE_INTEREST"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"BANKING","tested_point":"EIR_DEFINITION","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IFRS9.000009","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000009","section_id":"understand"},"references":["IFRS 9 §5.4.1","IFRS 9 §B5.4.1","IFRS 9"],"exercise":{"prompt":{"fr":"","en":"What is the effective interest rate of a financial asset at amortised cost?","es":""},"explanation":{"fr":"","en":"Rule to remember: the EIR exactly discounts the estimated future cash flows over the expected life (IFRS 9, Appendix A).","es":""},"common_error":{"fr":"","en":"Confusing the effective rate with the contract's nominal rate.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The rate that exactly discounts the estimated future cash flows over the instrument's expected life","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The nominal rate written in the loan contract, applied to the principal","es":""},"correct":false,"feedback":{"fr":"","en":"The nominal rate may differ from the effective rate, which includes fees, costs and premiums or discounts (IFRS 9, Appendix A).","es":""}},{"id":"C","text":{"fr":"","en":"The market rate observed for comparable instruments at the reporting date, leaving the expected contractual cash flows aside","es":""},"correct":false,"feedback":{"fr":"","en":"The EIR is set at inception for the instrument and does not move with market rates (IFRS 9, Appendix A).","es":""}},{"id":"D","text":{"fr":"","en":"The average rate of the borrowings of the entity financing the asset","es":""},"correct":false,"feedback":{"fr":"","en":"The EIR depends on the instrument's own cash flows, not on the entity's financing (IFRS 9, Appendix A).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000064","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.MEASUREMENT.EFFECTIVE_INTEREST"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"REAL_ESTATE","tested_point":"FEES_INTEGRAL_OR_NOT","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS9.000009","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000009","section_id":"rule-fees"},"references":["IFRS 9 §5.4.1","IFRS 9 §B5.4.1","IFRS 9"],"exercise":{"prompt":{"fr":"","en":"Fornel bank collects several fees on a loan portfolio. Classify each according to its treatment.","es":""},"explanation":{"fr":"","en":"Rule to remember: origination and credit assessment fees adjust the EIR; management and syndication fall under IFRS 15 (IFRS 9, paras. B5.4.1 to B5.4.3).","es":""},"common_error":{"fr":"","en":"Spreading a distinct-service fee over the life of the loan.","es":""},"format":"CLASSIFICATION","categories":[{"id":"EIR","text":{"fr":"","en":"Adjusts the effective interest rate","es":""}},{"id":"IFRS15","text":{"fr":"","en":"Falls under IFRS 15","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Origination fees collected when the loan is created","es":""},"category":"EIR"},{"id":"I2","text":{"fr":"","en":"Fees for assessing the borrower's creditworthiness","es":""},"category":"EIR"},{"id":"I3","text":{"fr":"","en":"Annual fee for managing the portfolio on behalf of a third party","es":""},"category":"IFRS15"},{"id":"I4","text":{"fr":"","en":"Syndication fee collected for placing the loan with other banks","es":""},"category":"IFRS15"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000065","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.MEASUREMENT.EFFECTIVE_INTEREST"],"dimension":"CALCULATION","format":"CALCULATION","context":"AUTOMOTIVE","tested_point":"INITIAL_NET_AMOUNT_FEE","difficulty":"BEGINNER","estimated_time_s":120,"lesson_id":"LS.IFRS9.000009","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000009","section_id":"rule-fees"},"references":["IFRS 9 §5.4.1","IFRS 9 §B5.4.1","IFRS 9"],"exercise":{"prompt":{"fr":"","en":"Pivane grants a €250,000 loan and collects €3,750 of origination fees that form an integral part of the effective interest rate. Give the initial amount used as the basis of the schedule.","es":""},"explanation":{"fr":"","en":"250,000 - 3,750 = €246,250: the fees collected reduce the net amount advanced (IFRS 9, para. B5.4.1).","es":""},"common_error":{"fr":"","en":"Adding the fees collected to the amount advanced.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Amount advanced","es":""},"value":"250000","unit":"EUR"},{"label":{"fr":"","en":"Integral origination fees collected","es":""},"value":"3750","unit":"EUR"}],"steps":[{"id":"s1","label":{"fr":"","en":"Net initial amount","es":""},"answer":246250,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Net initial amount","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Amount advanced","es":""},"value":250000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Integral origination fees collected","es":""},"value":3750,"unit":"EUR"}],"result":246250,"unit":"EUR"}],"rationale":{"fr":"","en":"250,000 - 3,750 = €246,250: the fees collected reduce the net amount advanced (IFRS 9, para. B5.4.1).","es":""},"references":["REF.IFRS9.5.4.1","REF.IFRS9.B5.4.1","REF.IFRS9.A.AMORTISED"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000066","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.MEASUREMENT.AMORTISED_COST_SCHEDULE"],"dimension":"CALCULATION","format":"CALCULATION","context":"TELECOM","tested_point":"ZERO_COUPON_SCHEDULE","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS9.000009","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000009","section_id":"numeric-schedule"},"references":["IFRS 9 §5.4.1","IFRS 9"],"exercise":{"prompt":{"fr":"","en":"Hendrel holds a debt instrument at amortised cost, with no coupon. Opening carrying amount: €200,000. Effective interest rate: 4% (case data). Case convention: interest rounded to the euro; no cash received before maturity.","es":""},"explanation":{"fr":"","en":"Year 1: 200,000 x 4% = €8,000; amount €208,000. Year 2: 208,000 x 4% = €8,320; amount €216,320. Year 2 interest is computed on a higher base (IFRS 9, para. 5.4.1).","es":""},"common_error":{"fr":"","en":"Recomputing year 2 interest on year 1's opening amount.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Opening carrying amount","es":""},"value":"200000","unit":"EUR"},{"label":{"fr":"","en":"Effective interest rate","es":""},"value":"4","unit":"PERCENT"}],"steps":[{"id":"s1","label":{"fr":"","en":"Interest of the first year","es":""},"answer":8000,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Carrying amount at the end of the first year","es":""},"answer":208000,"tolerance":0,"unit":"EUR"},{"id":"s3","label":{"fr":"","en":"Interest of the second year","es":""},"answer":8320,"tolerance":0,"unit":"EUR"},{"id":"s4","label":{"fr":"","en":"Carrying amount at the end of the second year","es":""},"answer":216320,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Interest of the first year","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Opening carrying amount","es":""},"value":200000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Effective interest rate","es":""},"value":4,"unit":"PERCENT"}],"result":8000,"unit":"EUR"},{"step":"s3","meaning":{"fr":"","en":"Interest of the second year","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount at the end of the first year","es":""},"value":208000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Effective interest rate","es":""},"value":4,"unit":"PERCENT"}],"result":8320,"unit":"EUR"}],"references":["REF.IFRS9.5.4.1","REF.IFRS9.A.AMORTISED"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000067","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.MEASUREMENT.AMORTISED_COST_SCHEDULE","IFRS9.MEASUREMENT.EFFECTIVE_INTEREST"],"dimension":"CALCULATION","format":"CALCULATION","context":"MEDIA","tested_point":"COUPON_BOND_SCHEDULE","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS9.000009","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000009","section_id":"numeric-schedule"},"references":["IFRS 9 §5.4.1","IFRS 9","IFRS 9 §B5.4.1"],"exercise":{"prompt":{"fr":"","en":"Larvik buys a three-year bond at amortised cost. Initial carrying amount: €47,958; coupon received at year end: €1,750; effective interest rate: 5% (case data). Case convention: interest rounded to the euro. Give the figures for the first two years.","es":""},"explanation":{"fr":"","en":"Year 1: 47,958 x 5% = €2,398; amount 47,958 + 2,398 - 1,750 = €48,606. Year 2: 48,606 x 5% = €2,430; amount 48,606 + 2,430 - 1,750 = €49,286. Interest income exceeds the coupon: the discount is amortised (IFRS 9, para. 5.4.1).","es":""},"common_error":{"fr":"","en":"Deducting the coupon twice or adding it to the carrying amount.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Initial carrying amount","es":""},"value":"47958","unit":"EUR"},{"label":{"fr":"","en":"Annual coupon received","es":""},"value":"1750","unit":"EUR"},{"label":{"fr":"","en":"Effective interest rate","es":""},"value":"5","unit":"PERCENT"}],"steps":[{"id":"s1","label":{"fr":"","en":"Interest income of year 1","es":""},"answer":2398,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Carrying amount at end of year 1","es":""},"answer":48606,"tolerance":0,"unit":"EUR"},{"id":"s3","label":{"fr":"","en":"Interest income of year 2","es":""},"answer":2430,"tolerance":0,"unit":"EUR"},{"id":"s4","label":{"fr":"","en":"Carrying amount at end of year 2","es":""},"answer":49286,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Interest income of year 1","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Initial carrying amount","es":""},"value":47958,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Effective interest rate","es":""},"value":5,"unit":"PERCENT"}],"result":2398,"unit":"EUR"},{"step":"s2","meaning":{"fr":"","en":"Carrying amount at end of year 1","es":""},"expression":"a + b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Initial carrying amount","es":""},"value":47958,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Interest income of year 1","es":""},"value":2398,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Annual coupon received","es":""},"value":1750,"unit":"EUR"}],"result":48606,"unit":"EUR"},{"step":"s3","meaning":{"fr":"","en":"Interest income of year 2","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount at end of year 1","es":""},"value":48606,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Effective interest rate","es":""},"value":5,"unit":"PERCENT"}],"result":2430,"unit":"EUR"},{"step":"s4","meaning":{"fr":"","en":"Carrying amount at end of year 2","es":""},"expression":"a + b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount at end of year 1","es":""},"value":48606,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Interest income of year 2","es":""},"value":2430,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Annual coupon received","es":""},"value":1750,"unit":"EUR"}],"result":49286,"unit":"EUR"}],"references":["REF.IFRS9.5.4.1","REF.IFRS9.A.AMORTISED","REF.IFRS9.B5.4.1"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000068","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.MEASUREMENT.AMORTISED_COST_SCHEDULE"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"PHARMA","tested_point":"EIR_INTEREST_ENTRY_ZERO_COUPON","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS9.000009","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000009","section_id":"entry-schedule"},"references":["IFRS 9 §5.4.1","IFRS 9"],"exercise":{"prompt":{"fr":"","en":"Zavrel bought a zero-coupon security for €95,000 plus €2,500 of direct transaction costs, at amortised cost. Effective interest rate: 5% (case data). Post the first-year interest entry (rounded to the euro).","es":""},"explanation":{"fr":"","en":"Initial amount: 95,000 + 2,500 = €97,500; interest: 97,500 x 5% = €4,875. Debit financial assets, credit interest income: no cash received, since the security has no coupon (IFRS 9, para. 5.4.1).","es":""},"common_error":{"fr":"","en":"Debiting cash although no coupon is received.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"fa","text":{"fr":"","en":"Financial assets at amortised cost","es":""}},{"id":"int","text":{"fr":"","en":"Interest income","es":""}},{"id":"cash","text":{"fr":"","en":"Cash","es":""}},{"id":"exp","text":{"fr":"","en":"Fee expense","es":""}}],"lines":[{"id":"l1","account":"fa","side":"DEBIT","amount":4875,"given":["account","side"]},{"id":"l2","account":"int","side":"CREDIT","amount":4875,"given":["account"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000069","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.MEASUREMENT.EFFECTIVE_INTEREST","IFRS9.MEASUREMENT.INITIAL"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"TRANSPORT","tested_point":"LOAN_ORIGINATION_FEE_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS9.000009","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000009","section_id":"entry-schedule"},"references":["IFRS 9 §5.4.1","IFRS 9 §B5.4.1","IFRS 9","IFRS 9 §5.1.1"],"exercise":{"prompt":{"fr":"","en":"Thorvel grants a €400,000 loan and collects €6,000 of origination fees that form an integral part of the effective interest rate. Post the grant entry, in net amounts.","es":""},"explanation":{"fr":"","en":"400,000 - 6,000 = €394,000: the loan's initial amount is net of fees; the fees do not go to income on day one but are spread through the effective interest rate (IFRS 9, para. B5.4.1).","es":""},"common_error":{"fr":"","en":"Recognising the fees as immediate income and recording the loan at nominal.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"loan","text":{"fr":"","en":"Loans at amortised cost","es":""}},{"id":"cash","text":{"fr":"","en":"Cash","es":""}},{"id":"inc","text":{"fr":"","en":"Fee income","es":""}},{"id":"int","text":{"fr":"","en":"Interest income","es":""}}],"lines":[{"id":"l1","account":"loan","side":"DEBIT","amount":394000,"given":["account","side"]},{"id":"l2","account":"cash","side":"CREDIT","amount":394000,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000070","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.MEASUREMENT.EFFECTIVE_INTEREST","IFRS9.MEASUREMENT.AMORTISED_COST_SCHEDULE","IFRS9.MEASUREMENT.INITIAL"],"dimension":"ANALYSIS","format":"MINI_CASE","context":"SOFTWARE","tested_point":"PURCHASE_WITH_COSTS_SCHEDULE","difficulty":"INTERMEDIATE","estimated_time_s":180,"lesson_id":"LS.IFRS9.000009","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000009","section_id":"how"},"references":["IFRS 9 §5.4.1","IFRS 9 §B5.4.1","IFRS 9","IFRS 9 §5.1.1"],"exercise":{"prompt":{"fr":"","en":"Establish the treatment of the security acquired by Gelvan.","es":""},"explanation":{"fr":"","en":"Rule to remember: the initial amount includes direct costs; EIR interest is computed on the carrying amount (IFRS 9, paras. 5.1.1 and 5.4.1).","es":""},"common_error":{"fr":"","en":"Treating acquisition costs as an immediate expense.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Gelvan buys, to hold until the collection maturity, zero-coupon securities with a fair value of €180,000. It pays €2,700 of directly attributable brokerage fees. The cash flows are SPPI and the model is collection (amortised cost classification). The effective interest rate is 4% a year (case data). Case convention: interest rounded to the euro.","es":""},"parts":[{"prompt":{"fr":"","en":"Calculate the initial amount, the first-year interest and the closing carrying amount.","es":""},"explanation":{"fr":"","en":"Initial amount: 180,000 + 2,700 = €182,700. Interest: 182,700 x 4% = €7,308. Closing amount: 182,700 + 7,308 = €190,008 (IFRS 9, paras. 5.1.1 and 5.4.1).","es":""},"common_error":{"fr":"","en":"Computing interest on the fair value of €180,000 alone.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"a","label":{"fr":"","en":"Initial amount","es":""},"answer":182700,"tolerance":0,"unit":"EUR"},{"id":"b","label":{"fr":"","en":"First-year interest","es":""},"answer":7308,"tolerance":0,"unit":"EUR"},{"id":"c","label":{"fr":"","en":"Closing carrying amount of the first year","es":""},"answer":190008,"tolerance":0,"unit":"EUR"}],"id":"p1","dimension":"CALCULATION","formula":{"lines":[{"step":"c","meaning":{"fr":"","en":"Closing carrying amount of the first year","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Initial amount","es":""},"value":182700,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"First-year interest","es":""},"value":7308,"unit":"EUR"}],"result":190008,"unit":"EUR"}],"rationale":{"fr":"","en":"Closing amount: 182,700 + 7,308 = €190,008 (IFRS 9, paras. 5.1.1 and 5.4.1).","es":""},"references":["REF.IFRS9.5.4.1","REF.IFRS9.B5.4.1","REF.IFRS9.A.AMORTISED","REF.IFRS9.5.1.1"]}},{"prompt":{"fr":"","en":"Why is interest based on the carrying amount rather than the purchase fair value?","es":""},"explanation":{"fr":"","en":"Rule to remember: interest = opening carrying amount x EIR, the initial amount including direct transaction costs (IFRS 9, paras. 5.1.1 and 5.4.1).","es":""},"common_error":{"fr":"","en":"Computing interest on the purchase price without fees.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Because brokerage fees are finance income amortised separately from the security","es":""},"correct":false,"feedback":{"fr":"","en":"Direct fees increase the initial amount of the security; they are not income (IFRS 9, para. 5.1.1).","es":""}},{"id":"B","text":{"fr":"","en":"Because the standard imposes the market rate at the purchase date on the fair value","es":""},"correct":false,"feedback":{"fr":"","en":"The rate is the instrument's EIR, applied to the carrying amount (IFRS 9, para. 5.4.1).","es":""}},{"id":"C","text":{"fr":"","en":"Because the redemption amount is not known when buying a zero-coupon security","es":""},"correct":false,"feedback":{"fr":"","en":"The redemption amount is contractual; it is not the reason for the calculation base (IFRS 9, para. 5.4.1).","es":""}},{"id":"D","text":{"fr":"","en":"Because amortised cost starts from the initial amount including direct transaction costs and the rate applies to the carrying amount","es":""},"correct":true}],"id":"p2","dimension":"RULE_KNOWLEDGE"},{"prompt":{"fr":"","en":"Post the entry for the acquisition of the securities.","es":""},"explanation":{"fr":"","en":"Debit financial assets €182,700 (180,000 + 2,700), credit cash €182,700; no fee expense (IFRS 9, para. 5.1.1).","es":""},"common_error":{"fr":"","en":"Charging the fees to expenses for an amortised cost asset.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"fa","text":{"fr":"","en":"Financial assets at amortised cost","es":""}},{"id":"cash","text":{"fr":"","en":"Cash","es":""}},{"id":"exp","text":{"fr":"","en":"Fee expense","es":""}}],"lines":[{"id":"l1","account":"fa","side":"DEBIT","amount":182700,"given":["account"]},{"id":"l2","account":"cash","side":"CREDIT","amount":182700,"given":["account"]}],"id":"p3","dimension":"JOURNAL_ENTRY"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000071","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.MEASUREMENT.AMORTISED_COST_SCHEDULE"],"dimension":"RECOGNITION","format":"ERROR_SPOT","context":"ENERGY","tested_point":"SCHEDULE_ERROR_SPOT","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS9.000009","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000009","section_id":"how"},"references":["IFRS 9 §5.4.1","IFRS 9"],"exercise":{"prompt":{"fr":"","en":"A colleague explains the amortised cost mechanism. Spot the erroneous statement.","es":""},"explanation":{"fr":"","en":"Rule to remember: EIR interest is computed on the carrying amount and differs from the coupon received (IFRS 9, para. 5.4.1).","es":""},"common_error":{"fr":"","en":"Equating interest income with the coupon.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"The closing carrying amount equals the opening amount, plus interest, minus cash received.","es":""},"erroneous":false},{"id":"S2","text":{"fr":"","en":"The interest income of a period is the contractual coupon received during that period.","es":""},"erroneous":true,"correction":{"fr":"","en":"Interest income is the opening carrying amount multiplied by the effective interest rate, and differs from the coupon received (IFRS 9, para. 5.4.1).","es":""}},{"id":"S3","text":{"fr":"","en":"For a security bought at a discount, interest income exceeds the coupon and the carrying amount increases.","es":""},"erroneous":false},{"id":"S4","text":{"fr":"","en":"After the last cash flow is received, the carrying amount falls back to zero.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000072","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.MEASUREMENT.FVOCI_DEBT"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"BANKING","tested_point":"FVOCI_PL_OCI_ITEMS","difficulty":"BEGINNER","estimated_time_s":90,"lesson_id":"LS.IFRS9.000010","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000010","section_id":"rule-fvoci"},"references":["IFRS 9 §5.7.10","IFRS 9 §5.5.2"],"exercise":{"prompt":{"fr":"","en":"Classify each element of a debt instrument at FVOCI according to where it is recognised.","es":""},"explanation":{"fr":"","en":"Rule to remember: interest, credit losses and exchange differences in profit or loss; other fair value changes in OCI (IFRS 9).","es":""},"common_error":{"fr":"","en":"Putting interest in OCI on the grounds that it is part of the security's return.","es":""},"format":"CLASSIFICATION","categories":[{"id":"PL","text":{"fr":"","en":"Profit or loss","es":""}},{"id":"OCI","text":{"fr":"","en":"Other comprehensive income","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Interest computed at the effective interest rate","es":""},"category":"PL"},{"id":"I2","text":{"fr":"","en":"Fair value increase due to a fall in market rates","es":""},"category":"OCI"},{"id":"I3","text":{"fr":"","en":"Expected credit loss recognised at the reporting date","es":""},"category":"PL"},{"id":"I4","text":{"fr":"","en":"Exchange difference on the amortised cost of a foreign-currency security","es":""},"category":"PL"},{"id":"I5","text":{"fr":"","en":"Fair value decrease due to a rise in market rates","es":""},"category":"OCI"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000073","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.MEASUREMENT.FVOCI_DEBT"],"dimension":"CALCULATION","format":"CALCULATION","context":"INSURANCE","tested_point":"FVOCI_RECYCLING_AMOUNT","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS9.000010","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000010","section_id":"numeric-fvoci"},"references":["IFRS 9 §5.7.10","IFRS 9 §5.5.2"],"exercise":{"prompt":{"fr":"","en":"Parnel acquires at par a €240,000 bond at FVOCI (amortised cost unchanged at €240,000). Fair value at the reporting date: €248,000. The bond is then sold for €243,500. Case convention: no credit loss, no exchange difference. Calculate the amounts.","es":""},"explanation":{"fr":"","en":"Reporting date: 248,000 - 240,000 = €8,000 in OCI. Up to the sale: 243,500 - 248,000 = €-4,500. Cumulative amount recycled: 8,000 + (-4,500) = €3,500, i.e. the sale price minus amortised cost (IFRS 9).","es":""},"common_error":{"fr":"","en":"Recycling only the last change and not the cumulative amount.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Amortised cost","es":""},"value":"240000","unit":"EUR"},{"label":{"fr":"","en":"Fair value at the reporting date","es":""},"value":"248000","unit":"EUR"},{"label":{"fr":"","en":"Sale price","es":""},"value":"243500","unit":"EUR"}],"steps":[{"id":"s1","label":{"fr":"","en":"Change in OCI at the reporting date","es":""},"answer":8000,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Change in OCI up to the sale (- if decrease)","es":""},"answer":-4500,"tolerance":0,"unit":"EUR"},{"id":"s3","label":{"fr":"","en":"Amount recycled to profit or loss on sale","es":""},"answer":3500,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Change in OCI at the reporting date","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value at the reporting date","es":""},"value":248000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Amortised cost","es":""},"value":240000,"unit":"EUR"}],"result":8000,"unit":"EUR"},{"step":"s2","meaning":{"fr":"","en":"Change in OCI up to the sale (- if decrease)","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Sale price","es":""},"value":243500,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Fair value at the reporting date","es":""},"value":248000,"unit":"EUR"}],"result":-4500,"unit":"EUR"}],"rationale":{"fr":"","en":"Cumulative amount recycled: 8,000 + (-4,500) = €3,500, i.e. the sale price minus amortised cost (IFRS 9).","es":""},"references":["REF.IFRS9.5.7.10","REF.IFRS9.5.5.2"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000074","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.MEASUREMENT.FVOCI_DEBT"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"MEDIA","tested_point":"FVOCI_RECYCLING_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS9.000010","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000010","section_id":"entry-fvoci"},"references":["IFRS 9 §5.7.10","IFRS 9 §5.5.2"],"exercise":{"prompt":{"fr":"","en":"Mirvane sells for €118,000 a bond at FVOCI whose fair value at the last reporting date was €118,000; the cumulative OCI is a gain of €4,500. Post the entry recycling the cumulative amount (the receipt is already recorded).","es":""},"explanation":{"fr":"","en":"The cumulative OCI of €4,500 is reclassified to profit or loss: debit OCI, credit gain on disposal; the reserve balance becomes nil (IFRS 9).","es":""},"common_error":{"fr":"","en":"Leaving the cumulative amount in OCI after the sale.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"oci","text":{"fr":"","en":"OCI (fair value reserve)","es":""}},{"id":"gain","text":{"fr":"","en":"Gain on disposal (profit or loss)","es":""}},{"id":"cash","text":{"fr":"","en":"Cash","es":""}},{"id":"inv","text":{"fr":"","en":"Debt instruments (FVOCI)","es":""}}],"lines":[{"id":"l1","account":"oci","side":"DEBIT","amount":4500,"given":["account","side"]},{"id":"l2","account":"gain","side":"CREDIT","amount":4500,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000075","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.MEASUREMENT.FVOCI_DEBT"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"RETAIL","tested_point":"FVOCI_VS_EQUITY_ELECTION","difficulty":"INTERMEDIATE","estimated_time_s":35,"lesson_id":"LS.IFRS9.000010","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000010","section_id":"rule-fvoci"},"references":["IFRS 9 §5.7.10","IFRS 9 §5.5.2"],"exercise":{"prompt":{"fr":"","en":"On the sale of a bond at FVOCI, the cumulative fair value changes in OCI are reclassified to profit or loss, unlike a share elected at OCI.","es":""},"explanation":{"fr":"","en":"Rule to remember: the FVOCI debt instrument is recycled on exit; the elected share never is (IFRS 9).","es":""},"common_error":{"fr":"","en":"Applying the same treatment to every position in OCI.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000076","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.MEASUREMENT.FVTPL_GAINS"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"PHARMA","tested_point":"FVTPL_GAIN_ENTRY","difficulty":"BEGINNER","estimated_time_s":120,"lesson_id":"LS.IFRS9.000010","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000010","section_id":"rule-fvtpl"},"references":["IFRS 9 §5.7.1"],"exercise":{"prompt":{"fr":"","en":"At the reporting date, the fair value of fund units measured at FVTPL by Quelvane goes from €120,000 to €128,400. Post the entry.","es":""},"explanation":{"fr":"","en":"128,400 - 120,000 = €8,400 gain: debit investments, credit fair value gain in profit or loss; no passage through OCI (IFRS 9).","es":""},"common_error":{"fr":"","en":"Crediting the OCI reserve for an asset at FVTPL.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"inv","text":{"fr":"","en":"Investments at FVTPL","es":""}},{"id":"gain","text":{"fr":"","en":"Fair value gain (profit or loss)","es":""}},{"id":"oci","text":{"fr":"","en":"OCI (fair value reserve)","es":""}},{"id":"cash","text":{"fr":"","en":"Cash","es":""}}],"lines":[{"id":"l1","account":"inv","side":"DEBIT","amount":8400,"given":["account","side"]},{"id":"l2","account":"gain","side":"CREDIT","amount":8400,"given":["account"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000077","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.MEASUREMENT.MODIFICATION_ASSETS"],"dimension":"CALCULATION","format":"CALCULATION","context":"CONSTRUCTION","tested_point":"ASSET_MODIFICATION_LOSS","difficulty":"ADVANCED","estimated_time_s":120,"lesson_id":"LS.IFRS9.000010","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000010","section_id":"rule-modification"},"references":["IFRS 9 §5.4.3"],"exercise":{"prompt":{"fr":"","en":"Cardel holds a loan with a gross carrying amount of €800,000, original effective interest rate 5%, coupon of 5% (€40,000 a year), three years remaining, principal of €800,000 at maturity. The coupon is cut to 3% (€24,000 a year), with no other change; the modification does not lead to derecognition. Case convention: recalculated gross amount = present value of the modified cash flows at the original effective interest rate, rounded to the euro.","es":""},"explanation":{"fr":"","en":"24,000 / 1.05 + 24,000 / 1.05² + 824,000 / 1.05³ = €756,428. Modification loss: 800,000 - 756,428 = €43,572, in profit or loss (IFRS 9, para. 5.4.3).","es":""},"common_error":{"fr":"","en":"Discounting at the new coupon rate of 3%.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Gross carrying amount before modification","es":""},"value":"800000","unit":"EUR"},{"label":{"fr":"","en":"Original effective interest rate","es":""},"value":"5","unit":"PERCENT"}],"steps":[{"id":"s1","label":{"fr":"","en":"Recalculated gross amount","es":""},"answer":756428,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Modification loss in profit or loss","es":""},"answer":43572,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s2","meaning":{"fr":"","en":"Modification loss in profit or loss","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Gross carrying amount before modification","es":""},"value":800000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Recalculated gross amount","es":""},"value":756428,"unit":"EUR"}],"result":43572,"unit":"EUR"}],"rationale":{"fr":"","en":"Modification loss: 800,000 - 756,428 = €43,572, in profit or loss (IFRS 9, para. 5.4.3).","es":""},"references":["REF.IFRS9.5.4.3"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000078","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.MEASUREMENT.MODIFICATION_ASSETS","IFRS9.MEASUREMENT.EFFECTIVE_INTEREST"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"BANKING","tested_point":"ASSET_MODIFICATION_CASE","difficulty":"EXPERT","estimated_time_s":180,"lesson_id":"LS.IFRS9.000010","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000010","section_id":"rule-modification"},"references":["IFRS 9 §5.4.3","IFRS 9 §5.4.1","IFRS 9 §B5.4.1","IFRS 9"],"exercise":{"prompt":{"fr":"","en":"Deal with the renegotiation of Dervane's loan.","es":""},"explanation":{"fr":"","en":"Rule to remember: the recalculated gross amount becomes the new base and the modification loss goes to profit or loss (IFRS 9, para. 5.4.3).","es":""},"common_error":{"fr":"","en":"Ignoring the impact of the modification on the gross amount.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Dervane holds a loan with a gross carrying amount of €1,200,000, original effective interest rate 4%, coupon of 4% (€48,000 a year), two years remaining, principal of €1,200,000 at maturity. The debtor, in difficulty, obtains a coupon cut to 2% (€24,000 a year), principal and maturity unchanged. Dervane's documented analysis concludes that the modification does not lead to derecognition. Case convention: recalculated gross amount = present value of the modified cash flows at the original effective interest rate, rounded to the euro.","es":""},"parts":[{"prompt":{"fr":"","en":"What treatment applies to the modification, on these facts?","es":""},"explanation":{"fr":"","en":"Rule to remember: without derecognition, the gross amount is recalculated and the difference goes to profit or loss (IFRS 9, para. 5.4.3).","es":""},"common_error":{"fr":"","en":"Making every renegotiation a derecognition.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The gross amount is recalculated and the difference is recognised in profit or loss as a modification gain or loss","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The loan is derecognised and a new asset is recognised at its fair value","es":""},"correct":false,"feedback":{"fr":"","en":"The case states that the modification does not lead to derecognition: the loan continues (IFRS 9, para. 5.4.3).","es":""}},{"id":"C","text":{"fr":"","en":"The difference is presented in OCI until the loan leaves, then recycled","es":""},"correct":false,"feedback":{"fr":"","en":"The modification gain or loss is recognised in profit or loss (IFRS 9, para. 5.4.3).","es":""}},{"id":"D","text":{"fr":"","en":"Nothing is recognised as long as the debtor keeps paying the new coupons","es":""},"correct":false,"feedback":{"fr":"","en":"The modification requires the gross amount to be recalculated, whether or not the debtor pays (IFRS 9, para. 5.4.3).","es":""}}],"id":"p1","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"Calculate the recalculated gross amount and the modification loss.","es":""},"explanation":{"fr":"","en":"24,000 / 1.04 + 1,224,000 / 1.04² = €1,154,734. Loss: 1,200,000 - 1,154,734 = €45,266 (IFRS 9, para. 5.4.3).","es":""},"common_error":{"fr":"","en":"Discounting at the 2% rate of the new coupon.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"a","label":{"fr":"","en":"Recalculated gross amount","es":""},"answer":1154734,"tolerance":0,"unit":"EUR"},{"id":"b","label":{"fr":"","en":"Modification loss","es":""},"answer":45266,"tolerance":0,"unit":"EUR"}],"id":"p2","dimension":"CALCULATION"},{"prompt":{"fr":"","en":"Post the modification entry.","es":""},"explanation":{"fr":"","en":"Debit modification loss in profit or loss, credit loans: the gross amount falls from €1,200,000 to the recalculated value (IFRS 9, para. 5.4.3).","es":""},"common_error":{"fr":"","en":"Reversing the debit and the credit.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"loan","text":{"fr":"","en":"Loans at amortised cost (gross amount)","es":""}},{"id":"loss","text":{"fr":"","en":"Modification loss (profit or loss)","es":""}},{"id":"cash","text":{"fr":"","en":"Cash","es":""}},{"id":"oci","text":{"fr":"","en":"OCI","es":""}}],"lines":[{"id":"l1","account":"loss","side":"DEBIT","amount":45266,"given":["account","side"]},{"id":"l2","account":"loan","side":"CREDIT","amount":45266,"given":["account"]}],"id":"p3","dimension":"JOURNAL_ENTRY"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000079","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.RECLASSIFICATION.ASSETS"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"RECLASS_TRIGGER_RULE","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IFRS9.000011","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000011","section_id":"understand"},"references":["IFRS 9 §4.4.1","IFRS 9 §B4.4.1"],"exercise":{"prompt":{"fr":"","en":"When may a financial asset be reclassified into another measurement category?","es":""},"explanation":{"fr":"","en":"Rule to remember: only a change in the business model's objective triggers a reclassification (IFRS 9, para. 4.4.1).","es":""},"common_error":{"fr":"","en":"Reclassifying to follow value or rating movements.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Whenever its fair value departs markedly from its carrying amount","es":""},"correct":false,"feedback":{"fr":"","en":"A value gap is not a trigger for reclassification (IFRS 9, para. 4.4.1).","es":""}},{"id":"B","text":{"fr":"","en":"If, and only if, the objective of the business model for managing those assets changes","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"At each reporting date, at the entity's choice, to reflect its intention of the moment, with no other condition","es":""},"correct":false,"feedback":{"fr":"","en":"Reclassification is not a yearly choice; it requires a model change (IFRS 9, para. 4.4.1).","es":""}},{"id":"D","text":{"fr":"","en":"When the issuer of the asset sees its credit rating deteriorate","es":""},"correct":false,"feedback":{"fr":"","en":"Credit deterioration bears on impairment, not on the category (IFRS 9, para. 4.4.1).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000080","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.RECLASSIFICATION.ASSETS"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"BANKING","tested_point":"MODEL_CHANGE_EVENTS","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS9.000011","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000011","section_id":"rule-trigger"},"references":["IFRS 9 §4.4.1","IFRS 9 §B4.4.1"],"exercise":{"prompt":{"fr":"","en":"Classify each event experienced by Eldrin bank according to whether or not it is a business model change.","es":""},"explanation":{"fr":"","en":"Rule to remember: a model change is decided by senior management, very infrequent and demonstrable; intention, temporary market and internal transfer are not one (IFRS 9, para. B4.4.3).","es":""},"common_error":{"fr":"","en":"Seeing a model change in a mere internal transfer.","es":""},"format":"CLASSIFICATION","categories":[{"id":"CHG","text":{"fr":"","en":"Business model change","es":""}},{"id":"NOCHG","text":{"fr":"","en":"Not a model change","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Senior management disposes of its trading room and decides to hold its securities to collect their cash flows, which practices confirm","es":""},"category":"CHG"},{"id":"I2","text":{"fr":"","en":"A manager wishes to keep a specific security longer than planned","es":""},"category":"NOCHG"},{"id":"I3","text":{"fr":"","en":"The market for a series of bonds is closed for two weeks","es":""},"category":"NOCHG"},{"id":"I4","text":{"fr":"","en":"A portfolio is transferred from a collection department to a trading department of the same bank","es":""},"category":"NOCHG"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000081","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.RECLASSIFICATION.ASSETS"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"MEDIA","tested_point":"RECLASS_DATE_QUESTION","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS9.000011","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000011","section_id":"rule-date"},"references":["IFRS 9 §4.4.1","IFRS 9 §B4.4.1"],"exercise":{"prompt":{"fr":"","en":"Sandrel's senior management decides on 12 October N to change business model; the year ends on 31 December. What is the reclassification date?","es":""},"explanation":{"fr":"","en":"Rule to remember: the reclassification date is the first day of the first reporting period following the model change (IFRS 9, Appendix A).","es":""},"common_error":{"fr":"","en":"Using the decision date or the closing date.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"12 October N, the day of senior management's decision","es":""},"correct":false,"feedback":{"fr":"","en":"The reclassification date is not the decision date but the first day of the first following period (IFRS 9, Appendix A).","es":""}},{"id":"B","text":{"fr":"","en":"31 December N, the closing date of the current year","es":""},"correct":false,"feedback":{"fr":"","en":"31 December is the end of the current period; the reclassification date is the first day of the following period (IFRS 9, Appendix A).","es":""}},{"id":"C","text":{"fr":"","en":"1 January N, the start of the year in which the decision is taken, to keep statements comparable","es":""},"correct":false,"feedback":{"fr":"","en":"A reclassification does not precede the model change: it is prospective (IFRS 9, Appendix A).","es":""}},{"id":"D","text":{"fr":"","en":"1 January N+1, the first day of the first reporting period following the change","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000082","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.RECLASSIFICATION.ASSETS"],"dimension":"CALCULATION","format":"CALCULATION","context":"AGRIFOOD","tested_point":"RECLASS_DIFFERENCE_AMOUNT","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS9.000011","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000011","section_id":"numeric-reclass"},"references":["IFRS 9 §4.4.1","IFRS 9 §B4.4.1"],"exercise":{"prompt":{"fr":"","en":"A model change leads Tirvane to reclassify a portfolio from amortised cost to FVTPL. Gross amount before reclassification: €1,350,000; fair value at the reclassification date: €1,332,500. Pedagogical assumption of the case: the difference is recognised in profit or loss. Calculate it.","es":""},"explanation":{"fr":"","en":"The portfolio enters FVTPL at €1,332,500 (fair value at the reclassification date); the difference of 1,350,000 - 1,332,500 = €17,500 is a loss in profit or loss (case assumption; IFRS 9, Appendix A for the date).","es":""},"common_error":{"fr":"","en":"Restating prior-year results.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Gross amount before reclassification","es":""},"value":"1350000","unit":"EUR"},{"label":{"fr":"","en":"Fair value at the reclassification date","es":""},"value":"1332500","unit":"EUR"}],"steps":[{"id":"s1","label":{"fr":"","en":"Entry amount at FVTPL","es":""},"answer":1332500,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Loss recognised in profit or loss","es":""},"answer":17500,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s2","meaning":{"fr":"","en":"Loss recognised in profit or loss","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Gross amount before reclassification","es":""},"value":1350000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Fair value at the reclassification date","es":""},"value":1332500,"unit":"EUR"}],"result":17500,"unit":"EUR"}],"references":["REF.IFRS9.4.4.1","REF.IFRS9.B4.4.1"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000083","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.RECLASSIFICATION.ASSETS"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"PHARMA","tested_point":"RECLASS_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS9.000011","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000011","section_id":"numeric-reclass"},"references":["IFRS 9 §4.4.1","IFRS 9 §B4.4.1"],"exercise":{"prompt":{"fr":"","en":"Take Tirvane again: gross amount €1,350,000, fair value at the reclassification date €1,332,500, reclassification from amortised cost to FVTPL, difference in profit or loss (case assumption). Post the entry at the reclassification date.","es":""},"explanation":{"fr":"","en":"Debit FVTPL 1,332,500, debit loss 17,500, credit amortised cost 1,350,000: the old asset leaves at its gross amount, the new one enters at fair value (case assumption).","es":""},"common_error":{"fr":"","en":"Crediting the loss instead of debiting it.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"fvtpl","text":{"fr":"","en":"Financial assets at FVTPL","es":""}},{"id":"ac","text":{"fr":"","en":"Financial assets at amortised cost","es":""}},{"id":"loss","text":{"fr":"","en":"Reclassification loss (profit or loss)","es":""}},{"id":"oci","text":{"fr":"","en":"OCI","es":""}}],"lines":[{"id":"l1","account":"fvtpl","side":"DEBIT","amount":1332500,"given":["account","side"]},{"id":"l2","account":"loss","side":"DEBIT","amount":17500,"given":["account"]},{"id":"l3","account":"ac","side":"CREDIT","amount":1350000,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000084","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.RECLASSIFICATION.ASSETS"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"TRANSPORT","tested_point":"RECLASS_CASE_JUDGMENT","difficulty":"INTERMEDIATE","estimated_time_s":180,"lesson_id":"LS.IFRS9.000011","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000011","section_id":"judgment"},"references":["IFRS 9 §4.4.1","IFRS 9 §B4.4.1"],"exercise":{"prompt":{"fr":"","en":"Assess Gavrel's reclassification request.","es":""},"explanation":{"fr":"","en":"Rule to remember: reclassification requires a genuine model change and takes effect only at the reclassification date (IFRS 9, para. 4.4.1).","es":""},"common_error":{"fr":"","en":"Reclassifying for presentational convenience.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Gavrel manages a bond portfolio on a collect-and-sell basis (FVOCI). Its finance director proposes to reclassify it to amortised cost because the fair value changes in OCI seem awkward to him. No decision by senior management, no change of activity and no change in the management of the portfolio has taken place; regular sales continue.","es":""},"parts":[{"prompt":{"fr":"","en":"What should be answered to this proposal?","es":""},"explanation":{"fr":"","en":"Rule to remember: only a model change justifies reclassification; accounting discomfort is not one (IFRS 9, para. 4.4.1).","es":""},"common_error":{"fr":"","en":"Treating reclassification as a profit smoothing tool.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Accept, because the entity may choose to reclassify at each reporting date","es":""},"correct":false,"feedback":{"fr":"","en":"Reclassification does not rest on a choice at the reporting date but on a model change (IFRS 9, para. 4.4.1).","es":""}},{"id":"B","text":{"fr":"","en":"Accept, since amortised cost gives a less volatile result, which justifies the change, requested by management","es":""},"correct":false,"feedback":{"fr":"","en":"Volatility of profit is not a ground for reclassification (IFRS 9, para. 4.4.1).","es":""}},{"id":"C","text":{"fr":"","en":"Accept provided that prior years are restated","es":""},"correct":false,"feedback":{"fr":"","en":"Reclassification is prospective and is in any case not open here (IFRS 9, para. 4.4.1).","es":""}},{"id":"D","text":{"fr":"","en":"Refuse: without a change in the business model's objective, no reclassification is possible","es":""},"correct":true}],"id":"p1","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"Even if senior management genuinely decided to stop selling and to hold in order to collect, reclassification would occur only on the first day of the following period.","es":""},"explanation":{"fr":"","en":"Rule to remember: the reclassification date is the first day of the first period following the change (IFRS 9, Appendix A).","es":""},"common_error":{"fr":"","en":"Reclassifying as soon as the decision is taken.","es":""},"format":"TRUE_FALSE","answer":true,"id":"p2","dimension":"RULE_KNOWLEDGE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000085","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.RECLASSIFICATION.LIABILITIES"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"REAL_ESTATE","tested_point":"LIABILITY_NOT_RECLASSIFIED","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IFRS9.000011","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000011","section_id":"rule-liabilities"},"references":["IFRS 9 §4.4.2"],"exercise":{"prompt":{"fr":"","en":"Brevane designated a loan at FVTPL at inception for a mismatch that has since disappeared. What may it do?","es":""},"explanation":{"fr":"","en":"Rule to remember: financial liabilities are not reclassified (IFRS 9).","es":""},"common_error":{"fr":"","en":"Reclassifying a liability like an asset.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Reclassify the loan to amortised cost as soon as the mismatch disappears","es":""},"correct":false,"feedback":{"fr":"","en":"Financial liabilities are not reclassified after initial recognition (IFRS 9).","es":""}},{"id":"B","text":{"fr":"","en":"Keep the loan at FVTPL: liabilities are not reclassified","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Reclassify the loan at the reclassification date following the next model change","es":""},"correct":false,"feedback":{"fr":"","en":"Reclassification after a model change concerns assets, not liabilities (IFRS 9).","es":""}},{"id":"D","text":{"fr":"","en":"Cancel the designation by presenting it as a correction of an error","es":""},"correct":false,"feedback":{"fr":"","en":"A designation valid at inception is not an error and remains irrevocable (IFRS 9).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000086","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.DEFINITIONS.CREDIT_TERMS"],"dimension":"RULE_KNOWLEDGE","format":"MATCHING","context":"GENERIC","tested_point":"CREDIT_TERMS_MATCHING","difficulty":"BEGINNER","estimated_time_s":80,"lesson_id":"LS.IFRS9.000012","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000012","section_id":"rule-terms"},"references":["IFRS 9"],"exercise":{"prompt":{"fr":"","en":"Match each credit risk term with its definition.","es":""},"explanation":{"fr":"","en":"Rule to remember: each credit risk term has its own definition (IFRS 9, Appendix A).","es":""},"common_error":{"fr":"","en":"Confusing expected loss with 12-month loss.","es":""},"format":"MATCHING","left":[{"id":"L1","text":{"fr":"","en":"Credit loss","es":""}},{"id":"L2","text":{"fr":"","en":"Expected credit loss","es":""}},{"id":"L3","text":{"fr":"","en":"12-month expected credit loss","es":""}},{"id":"L4","text":{"fr":"","en":"Credit-impaired asset","es":""}}],"right":[{"id":"R1","text":{"fr":"","en":"Gap between contractual cash flows due and cash flows expected","es":""}},{"id":"R2","text":{"fr":"","en":"Weighted average of losses, with default risks as weights","es":""}},{"id":"R3","text":{"fr":"","en":"Portion of the lifetime loss due to defaults possible within 12 months","es":""}},{"id":"R4","text":{"fr":"","en":"Asset hit by an event adverse to its estimated future cash flows","es":""}},{"id":"R5","text":{"fr":"","en":"Gap between market value and carrying amount","es":""}}],"pairs":[{"left":"L1","right":"R1"},{"left":"L2","right":"R2"},{"left":"L3","right":"R3"},{"left":"L4","right":"R4"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000087","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.IMPAIRMENT.GENERAL_APPROACH"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"BANKING","tested_point":"STAGE1_MEASURE","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IFRS9.000012","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000012","section_id":"understand"},"references":["IFRS 9 §5.5.3","IFRS 9 §5.5.5","IFRS 9"],"exercise":{"prompt":{"fr":"","en":"A new loan of Tessar, whose credit risk has not increased significantly, has a loss allowance. On what basis is it measured?","es":""},"explanation":{"fr":"","en":"Rule to remember: at stage 1, the loss allowance equals the 12-month expected losses (IFRS 9, para. 5.5.5).","es":""},"common_error":{"fr":"","en":"Measuring over the lifetime from inception or recognising nothing.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The 12-month expected losses, resulting from defaults possible within 12 months after the reporting date","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The expected losses over the life of the loan, from the first reporting date, without distinguishing impairment stages","es":""},"correct":false,"feedback":{"fr":"","en":"Lifetime is reserved for instruments that have suffered a significant increase in risk or are impaired (IFRS 9).","es":""}},{"id":"C","text":{"fr":"","en":"No allowance as long as the loan is up to date: nothing is recognised","es":""},"correct":false,"feedback":{"fr":"","en":"An allowance equal to 12-month losses is recognised from inception (IFRS 9, para. 5.5.5).","es":""}},{"id":"D","text":{"fr":"","en":"The difference between the loan's fair value and its carrying amount at the reporting date","es":""},"correct":false,"feedback":{"fr":"","en":"The loss allowance rests on expected credit losses, not on fair value (IFRS 9, para. 5.5.5).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000088","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.IMPAIRMENT.GENERAL_APPROACH","IFRS9.IMPAIRMENT.SIGNIFICANT_INCREASE"],"dimension":"APPLICATION","format":"CLASSIFICATION","context":"RETAIL","tested_point":"STAGE_ASSIGNMENT_ITEMS","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS9.000012","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000012","section_id":"numeric-stages"},"references":["IFRS 9 §5.5.3","IFRS 9 §5.5.5","IFRS 9","IFRS 9 §5.5.9","IFRS 9 §5.5.11"],"exercise":{"prompt":{"fr":"","en":"Place each loan of Vernel bank in its stage at the reporting date. No rebuttal of the 30-day presumption is documented.","es":""},"explanation":{"fr":"","en":"Rule to remember: stage 1: no significant increase; stage 2: significant increase; stage 3: credit-impaired (IFRS 9, paras. 5.5.3, 5.5.5 and Appendix A).","es":""},"common_error":{"fr":"","en":"Making stage 2 depend on a proven default.","es":""},"format":"CLASSIFICATION","categories":[{"id":"S1","text":{"fr":"","en":"Stage 1 (12-month loss)","es":""}},{"id":"S2","text":{"fr":"","en":"Stage 2 (lifetime)","es":""}},{"id":"S3","text":{"fr":"","en":"Stage 3 (credit-impaired)","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Loan up to date on payments, rating unchanged since origination","es":""},"category":"S1"},{"id":"I2","text":{"fr":"","en":"Loan with 40 days past due on an instalment, with nothing to rebut the presumption","es":""},"category":"S2"},{"id":"I3","text":{"fr":"","en":"Loan whose debtor has ceased payments: a default event has occurred","es":""},"category":"S3"},{"id":"I4","text":{"fr":"","en":"Loan whose default risk has risen markedly since origination, with no delay or default","es":""},"category":"S2"},{"id":"I5","text":{"fr":"","en":"New loan granted last month to a good-quality company, up to date","es":""},"category":"S1"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000089","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.IMPAIRMENT.GENERAL_APPROACH"],"dimension":"CALCULATION","format":"CALCULATION","context":"TELECOM","tested_point":"STAGE_TRANSFER_CHARGE","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS9.000012","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000012","section_id":"numeric-stages"},"references":["IFRS 9 §5.5.3","IFRS 9 §5.5.5","IFRS 9"],"exercise":{"prompt":{"fr":"","en":"At 31 December N, Dorsen's loan (gross amount €520,000) is at stage 1 with a 12-month loss of €2,600. At 31 December N+1, a significant increase in risk is found: the lifetime loss is €15,600. Calculate the charge for N+1 (no other movement).","es":""},"explanation":{"fr":"","en":"At stage 2, the loss allowance equals the lifetime loss: €15,600. Charge: 15,600 - 2,600 = €13,000 in profit or loss (IFRS 9, para. 5.5.3).","es":""},"common_error":{"fr":"","en":"Recognising the lifetime loss on top of the existing allowance.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Loss allowance at end of N","es":""},"value":"2600","unit":"EUR"},{"label":{"fr":"","en":"Lifetime loss at end of N+1","es":""},"value":"15600","unit":"EUR"}],"steps":[{"id":"s1","label":{"fr":"","en":"Loss allowance at end of N+1","es":""},"answer":15600,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Charge for N+1 in profit or loss","es":""},"answer":13000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s2","meaning":{"fr":"","en":"Charge for N+1 in profit or loss","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Lifetime loss at end of N+1","es":""},"value":15600,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Loss allowance at end of N","es":""},"value":2600,"unit":"EUR"}],"result":13000,"unit":"EUR"}],"rationale":{"fr":"","en":"Charge: 15,600 - 2,600 = €13,000 in profit or loss (IFRS 9, para. 5.5.3).","es":""},"references":["REF.IFRS9.5.5.3","REF.IFRS9.5.5.5","REF.IFRS9.A.CREDIT"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000090","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.IMPAIRMENT.SIGNIFICANT_INCREASE"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"CONSTRUCTION","tested_point":"THIRTY_DAYS_PRESUMPTION","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS9.000012","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000012","section_id":"rule-sicr"},"references":["IFRS 9 §5.5.9","IFRS 9 §5.5.11","IFRS 9 §B5.5.37"],"exercise":{"prompt":{"fr":"","en":"A Lunar loan is 35 days past due on an instalment because of a bank IT incident, demonstrated by documents. Which conclusion is best founded?","es":""},"explanation":{"fr":"","en":"Rule to remember: the presumption of more than 30 days past due is rebuttable with reasonable and supportable information (IFRS 9, para. 5.5.11).","es":""},"common_error":{"fr":"","en":"Turning the presumption into an automatic rule in either direction.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Moving to stage 2 is compulsory, because the 30-day presumption is irrebuttable","es":""},"correct":false,"feedback":{"fr":"","en":"The presumption is rebuttable with reasonable and supportable information (IFRS 9, para. 5.5.11).","es":""}},{"id":"B","text":{"fr":"","en":"The presumption can be rebutted: the documents show that the delay does not mark a significant increase in risk","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Classification at stage 3 applies, since this delay is a default event","es":""},"correct":false,"feedback":{"fr":"","en":"The standard refers to the internal definition of default, presumed no later than 90 days past due, and 35 days past due does not in itself make the asset credit-impaired (IFRS 9, para. B5.5.37).","es":""}},{"id":"D","text":{"fr":"","en":"Staying at stage 1 applies, because a technical incident is not a credit risk, and the delays are administrative in nature","es":""},"correct":false,"feedback":{"fr":"","en":"Rebuttal requires a documented demonstration; it is not automatic (IFRS 9, para. 5.5.11).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000091","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.IMPAIRMENT.GENERAL_APPROACH","IFRS9.IMPAIRMENT.SIGNIFICANT_INCREASE"],"dimension":"ANALYSIS","format":"MINI_CASE","context":"ENERGY","tested_point":"STAGE_CASE_FULL","difficulty":"INTERMEDIATE","estimated_time_s":180,"lesson_id":"LS.IFRS9.000012","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000012","section_id":"numeric-stages"},"references":["IFRS 9 §5.5.3","IFRS 9 §5.5.5","IFRS 9","IFRS 9 §5.5.9","IFRS 9 §5.5.11"],"exercise":{"prompt":{"fr":"","en":"Determine the stage and the charge for Mervel's loan.","es":""},"explanation":{"fr":"","en":"Rule to remember: moving to stage 2 brings the loss allowance up to the lifetime loss (IFRS 9, para. 5.5.3).","es":""},"common_error":{"fr":"","en":"Confusing the charge with the total allowance.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Mervel Bank granted a €700,000 loan to a good-quality company. The previous year's loss allowance was €3,500 (12-month loss). At the reporting date, the borrower's default risk has risen sharply compared with origination (its main activity lost its major customer), but payments are up to date. The lifetime expected loss is €21,000.","es":""},"parts":[{"prompt":{"fr":"","en":"In which stage is the loan?","es":""},"explanation":{"fr":"","en":"Rule to remember: a sharp rise in default risk since inception places the loan at stage 2 (IFRS 9, para. 5.5.9).","es":""},"common_error":{"fr":"","en":"Waiting for a payment delay before moving to stage 2.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"At stage 1, since payments are up to date and without delay","es":""},"correct":false,"feedback":{"fr":"","en":"Delay is not the only indicator: the comparison of default risks may suffice to justify stage 2 (IFRS 9, para. 5.5.9).","es":""}},{"id":"B","text":{"fr":"","en":"At stage 3, because the lifetime expected loss exceeds 1% of the loan, measured at the reporting date","es":""},"correct":false,"feedback":{"fr":"","en":"No loss percentage defines stage 3, reserved for credit-impaired assets (IFRS 9, Appendix A).","es":""}},{"id":"C","text":{"fr":"","en":"There is no stage as long as no default is found","es":""},"correct":false,"feedback":{"fr":"","en":"The stages apply from inception, without waiting for a default (IFRS 9, paras. 5.5.3 and 5.5.5).","es":""}},{"id":"D","text":{"fr":"","en":"At stage 2: the default risk has increased significantly since origination","es":""},"correct":true}],"id":"p1","dimension":"ANALYSIS"},{"prompt":{"fr":"","en":"Calculate the loss allowance at the reporting date and the charge for the year.","es":""},"explanation":{"fr":"","en":"Stage 2: allowance = lifetime loss = €21,000. Charge: 21,000 - 3,500 = €17,500 (IFRS 9, para. 5.5.3).","es":""},"common_error":{"fr":"","en":"Deducting the 12-month loss from an already net loss.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"a","label":{"fr":"","en":"Loss allowance at the reporting date","es":""},"answer":21000,"tolerance":0,"unit":"EUR"},{"id":"b","label":{"fr":"","en":"Charge in profit or loss","es":""},"answer":17500,"tolerance":0,"unit":"EUR"}],"id":"p2","dimension":"CALCULATION","formula":{"lines":[{"step":"b","meaning":{"fr":"","en":"Charge in profit or loss","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Loss allowance at the reporting date","es":""},"value":21000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"The previous year's loss allowance was €3,500","es":""},"value":3500,"unit":"EUR"}],"result":17500,"unit":"EUR"}],"rationale":{"fr":"","en":"Charge: 21,000 - 3,500 = €17,500 (IFRS 9, para. 5.5.3).","es":""},"references":["REF.IFRS9.5.5.3","REF.IFRS9.5.5.5","REF.IFRS9.A.CREDIT","REF.IFRS9.5.5.9","REF.IFRS9.5.5.11"]}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000092","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.IMPAIRMENT.LOW_CREDIT_RISK"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"INSURANCE","tested_point":"LOW_CREDIT_RISK_EXPEDIENT","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS9.000012","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000012","section_id":"rule-low-credit-risk"},"references":["IFRS 9 §5.5.10"],"exercise":{"prompt":{"fr":"","en":"Marvik holds an investment-grade bond and wishes to use the low credit risk simplification. Which statement is correct?","es":""},"explanation":{"fr":"","en":"Rule to remember: low credit risk is an optional expedient that allows the 12-month loss to be kept (IFRS 9).","es":""},"common_error":{"fr":"","en":"Making the expedient an obligation or an automatic rule.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The simplification is optional: the entity may assume no significant increase and measure the 12-month loss","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The simplification is compulsory for an investment-grade security","es":""},"correct":false,"feedback":{"fr":"","en":"It is an optional expedient: the entity may also carry out the full analysis (IFRS 9).","es":""}},{"id":"C","text":{"fr":"","en":"A good-quality collateral is enough to establish low credit risk","es":""},"correct":false,"feedback":{"fr":"","en":"Collateral alone is not enough to show low credit risk (IFRS 9).","es":""}},{"id":"D","text":{"fr":"","en":"Once it leaves the low-risk category, the security moves to the lifetime loss, with no other monitoring condition","es":""},"correct":false,"feedback":{"fr":"","en":"Leaving the category does not automatically trigger lifetime measurement (IFRS 9).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000093","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.IMPAIRMENT.MODIFIED_ASSETS","IFRS9.IMPAIRMENT.SIGNIFICANT_INCREASE"],"dimension":"PROFESSIONAL_JUDGMENT","format":"SINGLE_CHOICE","context":"REAL_ESTATE","tested_point":"MODIFIED_ASSET_COMPARISON","difficulty":"ADVANCED","estimated_time_s":60,"lesson_id":"LS.IFRS9.000012","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000012","section_id":"rule-modified"},"references":["IFRS 9 §5.5.12","IFRS 9 §5.4.3","IFRS 9 §5.5.9","IFRS 9 §5.5.11"],"exercise":{"prompt":{"fr":"","en":"Tarnis renegotiates a loan without derecognising it. To assess the significant increase in credit risk, which comparison is right?","es":""},"explanation":{"fr":"","en":"Rule to remember: the current default risk (modified terms) is compared with the risk at inception (original terms) (IFRS 9, para. 5.5.12).","es":""},"common_error":{"fr":"","en":"Restarting a modified asset from stage 1.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The default risk at the reporting date under the modified terms, compared with the risk at the modification date","es":""},"correct":false,"feedback":{"fr":"","en":"The reference is initial recognition, not the modification date (IFRS 9, para. 5.5.12).","es":""}},{"id":"B","text":{"fr":"","en":"The default risk at the reporting date under the original terms, compared with that under the modified terms","es":""},"correct":false,"feedback":{"fr":"","en":"The comparison sets current risk against original risk, not two current risks (IFRS 9, para. 5.5.12).","es":""}},{"id":"C","text":{"fr":"","en":"The default risk at the reporting date under the modified terms, compared with the risk at initial recognition under the original terms","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"No comparison: the modified loan restarts at stage 1 on the renegotiation date","es":""},"correct":false,"feedback":{"fr":"","en":"A modification without derecognition does not reset the counter (IFRS 9, para. 5.5.12).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000094","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.IMPAIRMENT.SCOPE"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"TRANSPORT","tested_point":"ECL_SCOPE_SORTING","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS9.000012","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000012","section_id":"rule-scope"},"references":["IFRS 9 §5.5.1"],"exercise":{"prompt":{"fr":"","en":"Indicate whether each asset on a carrier's balance sheet falls within the expected credit loss model.","es":""},"explanation":{"fr":"","en":"Rule to remember: the model covers assets at amortised cost, debt instruments at FVOCI and receivables; it excludes equity instruments (IFRS 9).","es":""},"common_error":{"fr":"","en":"Applying the impairment model to shares.","es":""},"format":"CLASSIFICATION","categories":[{"id":"in","text":{"fr":"","en":"Within the model","es":""}},{"id":"out","text":{"fr":"","en":"Outside the model","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Loan granted to a supplier, measured at amortised cost","es":""},"category":"in"},{"id":"i2","text":{"fr":"","en":"Shares in a partner, measured at fair value through profit or loss","es":""},"category":"out"},{"id":"i3","text":{"fr":"","en":"Corporate bond measured at fair value through other comprehensive income","es":""},"category":"in"},{"id":"i4","text":{"fr":"","en":"Shares for which the entity elected presentation in other comprehensive income","es":""},"category":"out"},{"id":"i5","text":{"fr":"","en":"Receivables from freight customers","es":""},"category":"in"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000095","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.IMPAIRMENT.ECL_MEASUREMENT"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"ECL_NOT_WORST_CASE","difficulty":"BEGINNER","estimated_time_s":35,"lesson_id":"LS.IFRS9.000013","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000013","section_id":"rule-measure"},"references":["IFRS 9 §5.5.17"],"exercise":{"prompt":{"fr":"","en":"The expected credit loss of a loan equals the loss of the worst scenario envisaged.","es":""},"explanation":{"fr":"","en":"Rule to remember: the expected loss is an unbiased amount, weighted by the probabilities of several outcomes (IFRS 9).","es":""},"common_error":{"fr":"","en":"Confusing expected loss with maximum loss.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000096","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.IMPAIRMENT.ECL_MEASUREMENT"],"dimension":"CALCULATION","format":"CALCULATION","context":"CONSTRUCTION","tested_point":"ECL_THREE_SCENARIOS","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS9.000013","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000013","section_id":"numeric-scenarios"},"references":["IFRS 9 §5.5.17"],"exercise":{"prompt":{"fr":"","en":"A one-year €800,000 loan (effective interest rate 4%) has three scenarios at maturity: 60% probability with no loss, 30% with a loss of €120,000, 10% with a loss of €360,000. Case convention: present value rounded to the euro. Calculate the expected loss.","es":""},"explanation":{"fr":"","en":"0 x 60% + 120,000 x 30% + 360,000 x 10% = 36,000 + 36,000 = €72,000. Discounting over one year: 72,000 / 1.04 = €69,231 (IFRS 9).","es":""},"common_error":{"fr":"","en":"Forgetting the no-loss scenario in the weighting or the discounting.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Exposure","es":""},"value":"800000","unit":"EUR"},{"label":{"fr":"","en":"Effective interest rate","es":""},"value":"4","unit":"PERCENT"}],"steps":[{"id":"s1","label":{"fr":"","en":"Undiscounted expected loss","es":""},"answer":72000,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Discounted expected loss","es":""},"answer":69231,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s2","meaning":{"fr":"","en":"Discounted expected loss","es":""},"expression":"a / (1 + b)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Undiscounted expected loss","es":""},"value":72000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Effective interest rate","es":""},"value":4,"unit":"PERCENT"}],"result":69231,"unit":"EUR"}],"rationale":{"fr":"","en":"Discounting over one year: 72,000 / 1.04 = €69,231 (IFRS 9).","es":""},"references":["REF.IFRS9.5.5.17"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000097","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.IMPAIRMENT.ECL_MEASUREMENT"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"AUTOMOTIVE","tested_point":"ECL_CHARGE_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS9.000013","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000013","section_id":"entry-ecl"},"references":["IFRS 9 §5.5.17"],"exercise":{"prompt":{"fr":"","en":"The loss allowance on Orsel's loan goes from €25,000 at the opening to €69,000 at the reporting date (discounted expected loss). Post the charge entry.","es":""},"explanation":{"fr":"","en":"69,000 - 25,000 = €44,000 charge: debit impairment loss in profit or loss, credit loss allowance; the gross amount of the loan is unchanged (IFRS 9).","es":""},"common_error":{"fr":"","en":"Crediting the loan directly instead of a loss allowance.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"exp","text":{"fr":"","en":"Impairment loss on financial assets (profit or loss)","es":""}},{"id":"allow","text":{"fr":"","en":"Loss allowance for credit losses","es":""}},{"id":"loan","text":{"fr":"","en":"Loans at amortised cost (gross amount)","es":""}},{"id":"cash","text":{"fr":"","en":"Cash","es":""}}],"lines":[{"id":"l1","account":"exp","side":"DEBIT","amount":44000,"given":["account","side"]},{"id":"l2","account":"allow","side":"CREDIT","amount":44000,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000098","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.IMPAIRMENT.ECL_MEASUREMENT"],"dimension":"CALCULATION","format":"CALCULATION","context":"TRANSPORT","tested_point":"ECL_PD_LGD_EAD","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS9.000013","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000013","section_id":"numeric-building-blocks"},"references":["IFRS 9 §5.5.17"],"exercise":{"prompt":{"fr":"","en":"Course pedagogical assumption: expected loss = exposure x probability of default x loss given default. Exposure €560,000; 12-month probability of default 2%; loss given default 35%; effective interest rate 7%. Case convention: present value rounded to the euro. Calculate.","es":""},"explanation":{"fr":"","en":"560,000 x 2% x 35% = €3,920; discounting: 3,920 / 1.07 = €3,664 (IFRS 9).","es":""},"common_error":{"fr":"","en":"Applying the loss given default to the whole exposure without the probability.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Exposure","es":""},"value":"560000","unit":"EUR"},{"label":{"fr":"","en":"12-month probability of default","es":""},"value":"2","unit":"PERCENT"},{"label":{"fr":"","en":"Loss given default","es":""},"value":"35","unit":"PERCENT"}],"steps":[{"id":"s1","label":{"fr":"","en":"Undiscounted 12-month expected loss","es":""},"answer":3920,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Expected loss discounted over one year","es":""},"answer":3664,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Undiscounted 12-month expected loss","es":""},"expression":"a * b * c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Exposure","es":""},"value":560000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"12-month probability of default","es":""},"value":2,"unit":"PERCENT"},{"symbol":"c","meaning":{"fr":"","en":"Loss given default","es":""},"value":35,"unit":"PERCENT"}],"result":3920,"unit":"EUR"}],"references":["REF.IFRS9.5.5.17"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000099","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.IMPAIRMENT.MAXIMUM_PERIOD"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"BANKING","tested_point":"MAX_PERIOD_EXTENSION_OPTION","difficulty":"ADVANCED","estimated_time_s":60,"lesson_id":"LS.IFRS9.000013","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000013","section_id":"rule-max-period"},"references":["IFRS 9 §5.5.19"],"exercise":{"prompt":{"fr":"","en":"Radvel granted a three-year loan with an option, at the borrower's initiative, to extend for two years. The bank usually renews its loans to eight years by mutual agreement. Which period does it use to measure expected losses?","es":""},"explanation":{"fr":"","en":"Rule to remember: the maximum period is the contractual period of exposure, borrower extension options included (IFRS 9).","es":""},"common_error":{"fr":"","en":"Using commercial practice to extend the period beyond the contract.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Five years at most: three years of contract plus two years of the borrower's option","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Eight years, since that is the actual period of exposure observed in its commercial practice","es":""},"correct":false,"feedback":{"fr":"","en":"The period cannot be longer than the maximum contractual period, even if practice would justify it (IFRS 9).","es":""}},{"id":"C","text":{"fr":"","en":"Three years, because the borrower's extension option is not exercised at the reporting date","es":""},"correct":false,"feedback":{"fr":"","en":"Extension options at the borrower's initiative form part of the maximum contractual period (IFRS 9).","es":""}},{"id":"D","text":{"fr":"","en":"Two years, i.e. the length of the option itself, since the bank controls the risk","es":""},"correct":false,"feedback":{"fr":"","en":"The period includes the length of the initial contract, with the option on top (IFRS 9).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000100","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.IMPAIRMENT.COMMITMENTS_GUARANTEES","IFRS9.IMPAIRMENT.MAXIMUM_PERIOD","IFRS9.IMPAIRMENT.ECL_MEASUREMENT"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"RETAIL","tested_point":"REVOLVING_FACILITY_CASE","difficulty":"EXPERT","estimated_time_s":180,"lesson_id":"LS.IFRS9.000013","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000013","section_id":"rule-commitments"},"references":["IFRS 9 §5.5.20"],"exercise":{"prompt":{"fr":"","en":"Measure the expected loss on Veltan's credit card portfolio.","es":""},"explanation":{"fr":"","en":"Rule to remember: revolving facilities are measured over the period of exposure not mitigated by risk management (IFRS 9, para. 5.5.20).","es":""},"common_error":{"fr":"","en":"Reducing the exposure to the day's drawn balance.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Veltan Bank manages a credit card portfolio. The contract lets it cancel the line at one day's notice, but in practice it reduces it only after several months of non-payment, and its risk management actions limit the exposure only from that point. For the portfolio, the exposure at default is €6,000,000 (drawn part plus undrawn part expected to be drawn before default, case data), the probability of default over the unmitigated exposure period is 4% and the loss given default is 60%. Pedagogical assumption: expected loss = exposure x probability x loss given default; discounting is ignored.","es":""},"parts":[{"prompt":{"fr":"","en":"Over what period is the expected loss measured?","es":""},"explanation":{"fr":"","en":"Rule to remember: for revolving facilities, the period is that of the exposure not mitigated by risk management (IFRS 9, para. 5.5.20).","es":""},"common_error":{"fr":"","en":"Sticking to the contractual notice of cancellation.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"One day, the contractual notice period for cancelling the line","es":""},"correct":false,"feedback":{"fr":"","en":"The revolving facilities exception sets aside the limitation to the notice period where the cancellation ability does not limit exposure in practice (IFRS 9, para. 5.5.20).","es":""}},{"id":"B","text":{"fr":"","en":"The average length of the commercial relationship with the customer, as measured by the sales team","es":""},"correct":false,"feedback":{"fr":"","en":"The period is not based on the length of the commercial relationship but on the unmitigated exposure (IFRS 9, para. 5.5.20).","es":""}},{"id":"C","text":{"fr":"","en":"Twelve months, the normal length of an accounting year","es":""},"correct":false,"feedback":{"fr":"","en":"Twelve months is the stage 1 measure, independent of the exposure period used here (IFRS 9, para. 5.5.20).","es":""}},{"id":"D","text":{"fr":"","en":"The period of exposure to credit risk not mitigated by credit risk management actions","es":""},"correct":true}],"id":"p1","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"Calculate the portfolio's expected loss.","es":""},"explanation":{"fr":"","en":"6,000,000 x 4% x 60% = €144,000 (pedagogical assumption; IFRS 9, para. 5.5.20 for the period).","es":""},"common_error":{"fr":"","en":"Applying the probability of default alone to the exposure.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"a","label":{"fr":"","en":"Expected loss (undiscounted)","es":""},"answer":144000,"tolerance":0,"unit":"EUR"}],"id":"p2","dimension":"CALCULATION","formula":{"lines":[{"step":"a","meaning":{"fr":"","en":"Expected loss (undiscounted)","es":""},"expression":"a * b * c","variables":[{"symbol":"a","meaning":{"fr":"","en":"For the portfolio, the exposure at default is €6,000,000","es":""},"value":6000000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"the probability of default over the unmitigated exposure period is 4%","es":""},"value":4,"unit":"PERCENT"},{"symbol":"c","meaning":{"fr":"","en":"the loss given default is 60%","es":""},"value":60,"unit":"PERCENT"}],"result":144000,"unit":"EUR"}],"rationale":{"fr":"","en":"6,000,000 x 4% x 60% = €144,000 (pedagogical assumption; IFRS 9, para. 5.5.20 for the period).","es":""},"references":["REF.IFRS9.5.5.20"]}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000101","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.IMPAIRMENT.ECL_MEASUREMENT"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"BANKING","tested_point":"ECL_UNBIASED_WEIGHTED","difficulty":"BEGINNER","estimated_time_s":35,"lesson_id":"LS.IFRS9.000013","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000013","section_id":"rule-measure"},"references":["IFRS 9 §5.5.17"],"exercise":{"prompt":{"fr":"","en":"Expected credit loss is estimated by retaining the most likely scenario, to the exclusion of the other possible outcomes.","es":""},"explanation":{"fr":"","en":"Rule to remember: expected loss is an unbiased, probability-weighted amount over a range of outcomes (IFRS 9).","es":""},"common_error":{"fr":"","en":"Retaining the single most likely scenario.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000102","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.IMPAIRMENT.CREDIT_IMPAIRED"],"dimension":"CALCULATION","format":"CALCULATION","context":"CONSTRUCTION","tested_point":"STAGE3_INTEREST_NET","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS9.000014","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000014","section_id":"numeric-stage3"},"references":["IFRS 9","IFRS 9 §5.4.1"],"exercise":{"prompt":{"fr":"","en":"A Brelan loan with a gross amount of €480,000 is credit-impaired; its loss allowance is €130,000 and the effective interest rate 6%. Case convention: annual interest rounded to the euro. Calculate the year's interest and the gap with the gross base.","es":""},"explanation":{"fr":"","en":"Net amortised cost: 480,000 - 130,000 = €350,000. Interest: 350,000 x 6% = €21,000; on the gross amount: €28,800; gap: €7,800 (IFRS 9, para. 5.4.1).","es":""},"common_error":{"fr":"","en":"Applying the rate to the loss allowance or to the gross amount.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Gross amount","es":""},"value":"480000","unit":"EUR"},{"label":{"fr":"","en":"Loss allowance","es":""},"value":"130000","unit":"EUR"},{"label":{"fr":"","en":"Effective interest rate","es":""},"value":"6","unit":"PERCENT"}],"steps":[{"id":"s1","label":{"fr":"","en":"Net amortised cost","es":""},"answer":350000,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Interest for the year at stage 3","es":""},"answer":21000,"tolerance":0,"unit":"EUR"},{"id":"s3","label":{"fr":"","en":"Interest not recognised compared with the gross base","es":""},"answer":7800,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Net amortised cost","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Gross amount","es":""},"value":480000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Loss allowance","es":""},"value":130000,"unit":"EUR"}],"result":350000,"unit":"EUR"},{"step":"s2","meaning":{"fr":"","en":"Interest for the year at stage 3","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Net amortised cost","es":""},"value":350000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Effective interest rate","es":""},"value":6,"unit":"PERCENT"}],"result":21000,"unit":"EUR"}],"references":["REF.IFRS9.A.CREDIT","REF.IFRS9.5.4.1"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000103","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.IMPAIRMENT.CREDIT_IMPAIRED"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"LUXURY","tested_point":"STAGE3_INTEREST_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS9.000014","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000014","section_id":"numeric-stage3"},"references":["IFRS 9","IFRS 9 §5.4.1"],"exercise":{"prompt":{"fr":"","en":"Take Brelan's credit-impaired loan again (stage 3 interest for the year: €21,000, recognised without collection). Post the interest entry.","es":""},"explanation":{"fr":"","en":"Interest of €21,000 (350,000 x 6%) increases the gross amount and is interest income; no interest is recognised on the part covered by the loss allowance (IFRS 9, para. 5.4.1).","es":""},"common_error":{"fr":"","en":"Recognising €28,800 of interest on the gross amount.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"loan","text":{"fr":"","en":"Loans at amortised cost (gross amount)","es":""}},{"id":"int","text":{"fr":"","en":"Interest income","es":""}},{"id":"allow","text":{"fr":"","en":"Loss allowance","es":""}},{"id":"cash","text":{"fr":"","en":"Cash","es":""}}],"lines":[{"id":"l1","account":"loan","side":"DEBIT","amount":21000,"given":["account","side"]},{"id":"l2","account":"int","side":"CREDIT","amount":21000,"given":["account"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000104","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.IMPAIRMENT.CURE"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"AGRIFOOD","tested_point":"CURE_INTEREST_PRESENTATION","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS9.000014","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000014","section_id":"rule-cure"},"references":["IFRS 9"],"exercise":{"prompt":{"fr":"","en":"A credit-impaired asset of Taldor cures: it leaves stage 3. How is the difference between interest computed on the gross amount and that computed on amortised cost presented?","es":""},"explanation":{"fr":"","en":"Rule to remember: after cure of a credit-impaired asset, the interest difference is presented as a reversal of impairment (Committee decision, March 2019).","es":""},"common_error":{"fr":"","en":"Inflating the interest income of the year of cure.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As a reversal of impairment, and not as interest income","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"As an additional interest income of the period","es":""},"correct":false,"feedback":{"fr":"","en":"The Interpretations Committee retained a presentation as a reversal of impairment, not as interest income (March 2019).","es":""}},{"id":"C","text":{"fr":"","en":"In OCI, until the asset leaves","es":""},"correct":false,"feedback":{"fr":"","en":"No presentation in OCI is provided for this difference (Committee decision, March 2019).","es":""}},{"id":"D","text":{"fr":"","en":"It is not recognised, cure having no effect on it on the balance","es":""},"correct":false,"feedback":{"fr":"","en":"Cure changes the interest base and the presentation of the gap (Committee decision, March 2019).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000105","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.IMPAIRMENT.PRESENTATION"],"dimension":"CALCULATION","format":"CALCULATION","context":"TELECOM","tested_point":"ALLOWANCE_ROLL_FORWARD","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS9.000014","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000014","section_id":"rule-presentation"},"references":["IFRS 9"],"exercise":{"prompt":{"fr":"","en":"Moravel's loss allowance is €64,000 at the opening. During the year, uncollectable assets of €21,000 are written off (using the allowance) and the charge to profit or loss is €38,000. Calculate the closing allowance.","es":""},"explanation":{"fr":"","en":"Closing = opening + charge - write-offs = 64,000 + 38,000 - 21,000 = €81,000 (IFRS 9).","es":""},"common_error":{"fr":"","en":"Adding the write-offs instead of deducting them.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Allowance at the opening","es":""},"value":"64000","unit":"EUR"},{"label":{"fr":"","en":"Charge for the year","es":""},"value":"38000","unit":"EUR"},{"label":{"fr":"","en":"Write-offs for the year","es":""},"value":"21000","unit":"EUR"}],"steps":[{"id":"s1","label":{"fr":"","en":"Loss allowance at the reporting date","es":""},"answer":81000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Loss allowance at the reporting date","es":""},"expression":"a + b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Allowance at the opening","es":""},"value":64000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Charge for the year","es":""},"value":38000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Write-offs for the year","es":""},"value":21000,"unit":"EUR"}],"result":81000,"unit":"EUR"}],"rationale":{"fr":"","en":"Closing = opening + charge - write-offs = 64,000 + 38,000 - 21,000 = €81,000 (IFRS 9).","es":""},"references":["REF.IFRS9.IC.2019.CURING"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000106","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.MEASUREMENT.WRITE_OFF"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"MEDIA","tested_point":"WRITE_OFF_PARTIAL_COVERAGE","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS9.000014","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000014","section_id":"rule-write-off"},"references":["IFRS 9 §5.4.4"],"exercise":{"prompt":{"fr":"","en":"No reasonable recovery is expected on a Dessan loan with a gross amount of €90,000; its loss allowance is €55,000. Post the full write-off entry, recognising the additional charge needed.","es":""},"explanation":{"fr":"","en":"The €55,000 allowance is used; the balance of 90,000 - 55,000 = €35,000 is an additional charge in profit or loss; the gross amount is brought to zero (IFRS 9).","es":""},"common_error":{"fr":"","en":"Debiting the whole write-off to profit or loss without using the allowance.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"allow","text":{"fr":"","en":"Loss allowance for credit losses","es":""}},{"id":"loss","text":{"fr":"","en":"Impairment loss on financial assets (profit or loss)","es":""}},{"id":"loan","text":{"fr":"","en":"Loans at amortised cost (gross amount)","es":""}},{"id":"cash","text":{"fr":"","en":"Cash","es":""}}],"lines":[{"id":"l1","account":"allow","side":"DEBIT","amount":55000,"given":["account","side"]},{"id":"l2","account":"loss","side":"DEBIT","amount":35000,"given":["account"]},{"id":"l3","account":"loan","side":"CREDIT","amount":90000,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000107","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.MEASUREMENT.WRITE_OFF"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"WRITE_OFF_TRIGGER","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IFRS9.000014","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000014","section_id":"rule-write-off"},"references":["IFRS 9 §5.4.4"],"exercise":{"prompt":{"fr":"","en":"In which case is the gross amount of a financial asset reduced directly by a write-off?","es":""},"explanation":{"fr":"","en":"Rule to remember: the write-off occurs when no reasonable recovery is expected (IFRS 9).","es":""},"common_error":{"fr":"","en":"Triggering the write-off on a delay period.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"When the debtor is more than 30 days late in paying","es":""},"correct":false,"feedback":{"fr":"","en":"The 30 days relate to the significant increase in risk, not to the write-off (IFRS 9).","es":""}},{"id":"B","text":{"fr":"","en":"When the asset moves to stage 3, even if the amount of the loss allowance is small","es":""},"correct":false,"feedback":{"fr":"","en":"Stage 3 corresponds to impairment, not to the absence of an expectation of recovery (IFRS 9).","es":""}},{"id":"C","text":{"fr":"","en":"When there is no longer a reasonable expectation of recovering all or part of the asset","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"On the contractual maturity date, whether or not the debtor has paid","es":""},"correct":false,"feedback":{"fr":"","en":"Maturity does not trigger the write-off: it is the absence of an expectation of recovery (IFRS 9).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000108","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.IMPAIRMENT.POCI"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"REAL_ESTATE","tested_point":"POCI_ALLOWANCE_CHANGES","difficulty":"ADVANCED","estimated_time_s":60,"lesson_id":"LS.IFRS9.000014","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000014","section_id":"rule-poci"},"references":["IFRS 9 §5.4.1"],"exercise":{"prompt":{"fr":"","en":"Ferdan acquires a loan that was credit-impaired on purchase (credit-adjusted effective interest rate already established). At the reporting date, the lifetime expected loss has increased by €6,500 compared with the original expectations. What does it recognise?","es":""},"explanation":{"fr":"","en":"Rule to remember: for a POCI asset, only the cumulative changes in expected loss since inception are recognised (IFRS 9).","es":""},"common_error":{"fr":"","en":"Applying the stage 1 12-month measure to a POCI asset.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A loss allowance equal to 12-month losses, as at stage 1","es":""},"correct":false,"feedback":{"fr":"","en":"The general stage model does not apply to these assets (IFRS 9).","es":""}},{"id":"B","text":{"fr":"","en":"An impairment loss of €6,500 in profit or loss, i.e. the cumulative change in expected loss since inception","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Nothing, since the impairment was already known at the time of acquisition","es":""},"correct":false,"feedback":{"fr":"","en":"Only the original expectations are in the rate; the later worsening is recognised (IFRS 9).","es":""}},{"id":"D","text":{"fr":"","en":"The total lifetime expected loss, ignoring what is already in the rate, as on the first day","es":""},"correct":false,"feedback":{"fr":"","en":"Only the cumulative change since initial recognition is recognised (IFRS 9).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000109","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.IMPAIRMENT.POCI","IFRS9.INTERACTIONS.IFRS7"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"BANKING","tested_point":"POCI_FULL_CASE","difficulty":"EXPERT","estimated_time_s":180,"lesson_id":"LS.IFRS9.000014","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000014","section_id":"rule-poci"},"references":["IFRS 9 §5.4.1"],"exercise":{"prompt":{"fr":"","en":"Deal with Kelvar's loan that was credit-impaired on purchase.","es":""},"explanation":{"fr":"","en":"Rule to remember: a POCI asset follows its credit-adjusted rate and cumulative changes in expected loss; disclosures fall under IFRS 7.","es":""},"common_error":{"fr":"","en":"Treating a POCI asset like an ordinary asset.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Kelvar Bank buys a credit-impaired loan at its fair value of €52,000. The credit-adjusted effective interest rate is 15% (case data). At the first reporting date, the lifetime expected loss exceeds by €6,500 the one included in the rate; at the next reporting date, it is €2,000 lower than at the previous one (improvement). Case convention: annual interest rounded to the euro.","es":""},"parts":[{"prompt":{"fr":"","en":"Calculate the first-year interest and the loss allowance at the end of each reporting date.","es":""},"explanation":{"fr":"","en":"Interest: 52,000 x 15% = €7,800. First reporting date: cumulative change of €6,500. Next reporting date: 6,500 - 2,000 = €4,500 (IFRS 9, para. 5.4.1).","es":""},"common_error":{"fr":"","en":"Recognising the year's change as a new total allowance.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"a","label":{"fr":"","en":"Interest of the first year","es":""},"answer":7800,"tolerance":0,"unit":"EUR"},{"id":"b","label":{"fr":"","en":"Loss allowance at the first reporting date","es":""},"answer":6500,"tolerance":0,"unit":"EUR"},{"id":"c","label":{"fr":"","en":"Loss allowance at the next reporting date","es":""},"answer":4500,"tolerance":0,"unit":"EUR"}],"id":"p1","dimension":"CALCULATION","formula":{"lines":[{"step":"a","meaning":{"fr":"","en":"Interest of the first year","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Kelvar Bank buys a credit-impaired loan at its fair value of €52,000","es":""},"value":52000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"The credit-adjusted effective interest rate is 15%","es":""},"value":15,"unit":"PERCENT"}],"result":7800,"unit":"EUR"},{"step":"c","meaning":{"fr":"","en":"Loss allowance at the next reporting date","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Loss allowance at the first reporting date","es":""},"value":6500,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"it is €2,000 lower than at the previous one","es":""},"value":2000,"unit":"EUR"}],"result":4500,"unit":"EUR"}],"rationale":{"fr":"","en":"Next reporting date: 6,500 - 2,000 = €4,500 (IFRS 9, para. 5.4.1).","es":""},"references":["REF.IFRS9.5.4.1"]}},{"prompt":{"fr":"","en":"How does the bank treat the €2,000 improvement at the second reporting date?","es":""},"explanation":{"fr":"","en":"Rule to remember: cumulative changes in expected loss, favourable or unfavourable, go through the loss allowance and profit or loss (IFRS 9).","es":""},"common_error":{"fr":"","en":"Recognising only deteriorations.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is ignored, since improvements are not recognised for a POCI asset at this stage","es":""},"correct":false,"feedback":{"fr":"","en":"The cumulative changes are recognised in both directions, including improvements (IFRS 9).","es":""}},{"id":"B","text":{"fr":"","en":"It is interest income of €2,000 that increases the effective interest rate","es":""},"correct":false,"feedback":{"fr":"","en":"The credit-adjusted rate is set at inception; the improvement goes through the loss allowance (IFRS 9).","es":""}},{"id":"C","text":{"fr":"","en":"It is presented in OCI until the loan leaves","es":""},"correct":false,"feedback":{"fr":"","en":"Changes in the loss allowance of an asset at amortised cost go to profit or loss (IFRS 9).","es":""}},{"id":"D","text":{"fr":"","en":"It is an impairment gain of €2,000 in profit or loss, which reduces the loss allowance","es":""},"correct":true}],"id":"p2","dimension":"APPLICATION"},{"prompt":{"fr":"","en":"Where are the disclosures about the estimation assumptions for these expected losses found?","es":""},"explanation":{"fr":"","en":"Rule to remember: disclosures on credit risk and the loss allowance fall under IFRS 7 (pointer).","es":""},"common_error":{"fr":"","en":"Looking for the disclosures in the recognition standard.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"In IFRS 9, in the same paragraph as the measurement of the loss allowance","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 9 deals with recognition and measurement; disclosures are in IFRS 7.","es":""}},{"id":"B","text":{"fr":"","en":"In IAS 1, which sets the entity's risk information","es":""},"correct":false,"feedback":{"fr":"","en":"Disclosures on the credit risk of financial instruments fall under IFRS 7 (IFRS 7).","es":""}},{"id":"C","text":{"fr":"","en":"In IFRS 13, which governs the assumptions of an estimate","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 13 concerns fair value, not expected credit losses (IFRS 7).","es":""}},{"id":"D","text":{"fr":"","en":"In IFRS 7, which sets out disclosures on credit risk and on changes in the loss allowance","es":""},"correct":true}],"id":"p3","dimension":"RULE_KNOWLEDGE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000110","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.IMPAIRMENT.SIMPLIFIED_APPROACH"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"RETAIL","tested_point":"SIMPLIFIED_MANDATORY_SCOPE","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IFRS9.000015","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000015","section_id":"rule-simplified"},"references":["IFRS 9 §5.5.15"],"exercise":{"prompt":{"fr":"","en":"For which of these assets is the simplified approach compulsory?","es":""},"explanation":{"fr":"","en":"Rule to remember: the simplified approach is compulsory for trade receivables and contract assets without significant financing (IFRS 9, para. 5.5.15).","es":""},"common_error":{"fr":"","en":"Extending the simplified approach to any short-term asset.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Loans granted to long-term customers by a credit company","es":""},"correct":false,"feedback":{"fr":"","en":"Loans follow the general stage approach (IFRS 9, para. 5.5.15).","es":""}},{"id":"B","text":{"fr":"","en":"Government bonds held at FVOCI by a treasurer","es":""},"correct":false,"feedback":{"fr":"","en":"Debt instruments follow the general approach, with a possible low credit risk simplification (IFRS 9).","es":""}},{"id":"C","text":{"fr":"","en":"Trade receivables without a significant financing component","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Shares held at FVTPL by a holding company","es":""},"correct":false,"feedback":{"fr":"","en":"Equity instruments are outside the impairment model (IFRS 9).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000111","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.IMPAIRMENT.SIMPLIFIED_APPROACH","IFRS9.INTERACTIONS.IFRS16"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"REAL_ESTATE","tested_point":"LEASE_RECEIVABLE_POLICY","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IFRS9.000015","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000015","section_id":"rule-simplified"},"references":["IFRS 9 §5.5.15","IFRS 9 §3.3.3"],"exercise":{"prompt":{"fr":"","en":"Examine the impairment policy of the leasing company Ulven.","es":""},"explanation":{"fr":"","en":"Rule to remember: lease receivables open a choice of approach, single per type of asset (IFRS 9, para. 5.5.15).","es":""},"common_error":{"fr":"","en":"Treating each lease receivable as a case apart.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Ulven is a lessor: it holds lease receivables on customers. It considers applying the simplified approach to type A lease receivables (rolling stock) and the general approach to type B (real estate), choosing case by case according to perceived risk.","es":""},"parts":[{"prompt":{"fr":"","en":"What can be concluded on this plan?","es":""},"explanation":{"fr":"","en":"Rule to remember: the choice of approach for lease receivables is a single policy per type of asset (IFRS 9, para. 5.5.15).","es":""},"common_error":{"fr":"","en":"Choosing the approach file by file.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The choice between simplified and general approach is an accounting policy, with a single policy per type of asset: case-by-case choice is not allowed","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The simplified approach is imposed on lease receivables, with no other choice","es":""},"correct":false,"feedback":{"fr":"","en":"For lease receivables, the standard leaves a choice of accounting policy (IFRS 9, para. 5.5.15).","es":""}},{"id":"C","text":{"fr":"","en":"The general approach is compulsory for lease receivables, which are not trade receivables","es":""},"correct":false,"feedback":{"fr":"","en":"Lease receivables can follow the simplified approach at the entity's choice (IFRS 9, para. 5.5.15).","es":""}},{"id":"D","text":{"fr":"","en":"The plan is compliant, since each type of asset has its own risk","es":""},"correct":false,"feedback":{"fr":"","en":"The policy is single per type of asset: two methods for the same type are not allowed (IFRS 9, para. 5.5.15).","es":""}}],"id":"p1","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"If Ulven adopts the simplified approach for its lease receivables, the loss allowance equals lifetime expected losses, with no tracking of stages.","es":""},"explanation":{"fr":"","en":"Rule to remember: the simplified approach adopted gives an allowance equal to lifetime losses, without stages (IFRS 9, para. 5.5.15).","es":""},"common_error":{"fr":"","en":"Keeping stages in the simplified approach.","es":""},"format":"TRUE_FALSE","answer":true,"id":"p2","dimension":"RULE_KNOWLEDGE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000112","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.IMPAIRMENT.PROVISION_MATRIX"],"dimension":"CALCULATION","format":"CALCULATION","context":"TELECOM","tested_point":"PROVISION_MATRIX_TOTAL","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS9.000015","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000015","section_id":"numeric-matrix"},"references":["IFRS 9 §5.5.15"],"exercise":{"prompt":{"fr":"","en":"Orvane applies a provision matrix to its trade receivables of €750,000. Balances and loss rates (already adjusted for forward-looking information): not past due €420,000 at 1%; 1 to 30 days €180,000 at 3%; 31 to 60 days €90,000 at 8%; 61 to 90 days €40,000 at 20%; over 90 days €20,000 at 50%. The opening allowance is €26,000. Case convention: amounts rounded to the euro. Calculate the total allowance and the charge.","es":""},"explanation":{"fr":"","en":"420,000 x 1% = €4,200; 180,000 x 3% = €5,400; 90,000 x 8% = €7,200; 40,000 x 20% = €8,000; 20,000 x 50% = €10,000. Total: €34,800. Charge: 34,800 - 26,000 = €8,800 (IFRS 9).","es":""},"common_error":{"fr":"","en":"Applying the average rate to the whole or adding up the rates.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Total trade receivables","es":""},"value":"750000","unit":"EUR"}],"steps":[{"id":"s1","label":{"fr":"","en":"Allowance of the 'not past due' bucket","es":""},"answer":4200,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Allowance of the 'over 90 days' bucket","es":""},"answer":10000,"tolerance":0,"unit":"EUR"},{"id":"s3","label":{"fr":"","en":"Total loss allowance","es":""},"answer":34800,"tolerance":0,"unit":"EUR"},{"id":"s4","label":{"fr":"","en":"Charge for the year","es":""},"answer":8800,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s4","meaning":{"fr":"","en":"Charge for the year","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Total loss allowance","es":""},"value":34800,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"The opening allowance is €26,000","es":""},"value":26000,"unit":"EUR"}],"result":8800,"unit":"EUR"}],"references":["REF.IFRS9.5.5.15"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000113","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.IMPAIRMENT.PROVISION_MATRIX"],"dimension":"CALCULATION","format":"CALCULATION","context":"PHARMA","tested_point":"LOSS_RATE_DERIVATION","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS9.000015","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000015","section_id":"numeric-rate"},"references":["IFRS 9 §5.5.15"],"exercise":{"prompt":{"fr":"","en":"For Tolvik's '61 to 90 days' bucket, historical receivables of €60,000 produced €3,900 of losses. Forecasts justify a relative forward-looking adjustment of +20%. Case convention: rates rounded to two decimals. Calculate the historical rate and the adjusted rate, then the allowance for a current balance of €80,000.","es":""},"explanation":{"fr":"","en":"Historical rate: 3,900 / 60,000 = 6.50%. Adjusted: 6.50% x 1.20 = 7.80%. Allowance: 80,000 x 7.80% = €6,240 (IFRS 9).","es":""},"common_error":{"fr":"","en":"Adding 20 percentage points instead of a relative adjustment.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Historical losses","es":""},"value":"3900","unit":"EUR"},{"label":{"fr":"","en":"Historical receivables of the bucket","es":""},"value":"60000","unit":"EUR"},{"label":{"fr":"","en":"Current balance of the bucket","es":""},"value":"80000","unit":"EUR"}],"steps":[{"id":"s1","label":{"fr":"","en":"Historical loss rate (in %)","es":""},"answer":6.5,"tolerance":0,"unit":"PERCENT"},{"id":"s2","label":{"fr":"","en":"Adjusted loss rate (in %)","es":""},"answer":7.8,"tolerance":0,"unit":"PERCENT"},{"id":"s3","label":{"fr":"","en":"Loss allowance of the bucket","es":""},"answer":6240,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Historical loss rate (in %)","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Historical losses","es":""},"value":3900,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Historical receivables of the bucket","es":""},"value":60000,"unit":"EUR"}],"result":6.5,"unit":"PERCENT"},{"step":"s3","meaning":{"fr":"","en":"Loss allowance of the bucket","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Current balance of the bucket","es":""},"value":80000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Adjusted loss rate (in %)","es":""},"value":7.8,"unit":"PERCENT"}],"result":6240,"unit":"EUR"}],"rationale":{"fr":"","en":"Allowance: 80,000 x 7.80% = €6,240 (IFRS 9).","es":""},"references":["REF.IFRS9.5.5.15"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000114","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.IMPAIRMENT.PROVISION_MATRIX","IFRS9.IMPAIRMENT.SIMPLIFIED_APPROACH"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"SOFTWARE","tested_point":"MATRIX_CHARGE_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS9.000015","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000015","section_id":"entry-matrix"},"references":["IFRS 9 §5.5.15"],"exercise":{"prompt":{"fr":"","en":"Kerlan's provision matrix gives a closing loss allowance of €14,800; the opening allowance was €10,300. Post the charge entry.","es":""},"explanation":{"fr":"","en":"14,800 - 10,300 = €4,500 charge: debit impairment loss in profit or loss, credit loss allowance; the gross receivables do not change (IFRS 9, para. 5.5.15).","es":""},"common_error":{"fr":"","en":"Recognising the full closing allowance instead of the change.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"exp","text":{"fr":"","en":"Impairment loss on trade receivables (profit or loss)","es":""}},{"id":"allow","text":{"fr":"","en":"Loss allowance on trade receivables","es":""}},{"id":"rec","text":{"fr":"","en":"Trade receivables (gross amount)","es":""}},{"id":"rev","text":{"fr":"","en":"Impairment reversal income","es":""}}],"lines":[{"id":"l1","account":"exp","side":"DEBIT","amount":4500,"given":["account","side"]},{"id":"l2","account":"allow","side":"CREDIT","amount":4500,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000115","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.IMPAIRMENT.PROVISION_MATRIX","IFRS9.IMPAIRMENT.SIMPLIFIED_APPROACH"],"dimension":"ANALYSIS","format":"MINI_CASE","context":"AUTOMOTIVE","tested_point":"MATRIX_TWO_SEGMENTS","difficulty":"INTERMEDIATE","estimated_time_s":180,"lesson_id":"LS.IFRS9.000015","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000015","section_id":"numeric-matrix"},"references":["IFRS 9 §5.5.15"],"exercise":{"prompt":{"fr":"","en":"Establish Pellan's loss allowance, which has two customer segments.","es":""},"explanation":{"fr":"","en":"Rule to remember: each segment has its own rate, and the charge is the change in the total allowance (IFRS 9).","es":""},"common_error":{"fr":"","en":"Mixing two segments in a single rate.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Pellan applies the simplified approach. Its history shows significantly different losses between retail customers (€300,000 of receivables, adjusted loss rate 1.5%) and wholesalers (€500,000 of receivables, adjusted loss rate 0.4%). Case convention: amounts rounded to the euro.","es":""},"parts":[{"prompt":{"fr":"","en":"Why does Pellan set up two groups of rates?","es":""},"explanation":{"fr":"","en":"Rule to remember: separate groupings are justified if history shows significantly different losses (IFRS 9).","es":""},"common_error":{"fr":"","en":"Segmenting to obtain a desired result.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Because the standard requires a matrix per legal category of customer","es":""},"correct":false,"feedback":{"fr":"","en":"The standard does not set the segments: they are justified by significantly different losses (IFRS 9).","es":""}},{"id":"B","text":{"fr":"","en":"Because history shows significantly different losses by segment, which justifies separate groupings","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Because the larger segment must carry the lower rate","es":""},"correct":false,"feedback":{"fr":"","en":"Each segment's rate reflects its own history and not its size (IFRS 9).","es":""}},{"id":"D","text":{"fr":"","en":"Because two rates make it possible to reduce the total allowance compared with a single rate","es":""},"correct":false,"feedback":{"fr":"","en":"The aim is an unbiased estimate, not to reduce the allowance (IFRS 9).","es":""}}],"id":"p1","dimension":"RULE_KNOWLEDGE"},{"prompt":{"fr":"","en":"Calculate the loss allowance of each segment and the total.","es":""},"explanation":{"fr":"","en":"300,000 x 1.5% = €4,500; 500,000 x 0.4% = €2,000; total €6,500 (IFRS 9).","es":""},"common_error":{"fr":"","en":"Applying the simple average rate to the sum of the balances.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"a","label":{"fr":"","en":"Allowance of the retail segment","es":""},"answer":4500,"tolerance":0,"unit":"EUR"},{"id":"b","label":{"fr":"","en":"Allowance of the wholesale segment","es":""},"answer":2000,"tolerance":0,"unit":"EUR"},{"id":"c","label":{"fr":"","en":"Total allowance","es":""},"answer":6500,"tolerance":0,"unit":"EUR"}],"id":"p2","dimension":"CALCULATION","formula":{"lines":[{"step":"c","meaning":{"fr":"","en":"Total allowance","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Allowance of the retail segment","es":""},"value":4500,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Allowance of the wholesale segment","es":""},"value":2000,"unit":"EUR"}],"result":6500,"unit":"EUR"}],"references":["REF.IFRS9.5.5.15"]}},{"prompt":{"fr":"","en":"The opening allowance was €4,000. Post the charge entry for the year.","es":""},"explanation":{"fr":"","en":"Charge: 6,500 - 4,000 = €2,500, debit impairment loss, credit loss allowance (IFRS 9, para. 5.5.15).","es":""},"common_error":{"fr":"","en":"Recognising the total allowance without deducting the opening one.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"exp","text":{"fr":"","en":"Impairment loss on trade receivables (profit or loss)","es":""}},{"id":"allow","text":{"fr":"","en":"Loss allowance on trade receivables","es":""}},{"id":"rec","text":{"fr":"","en":"Trade receivables","es":""}},{"id":"cash","text":{"fr":"","en":"Cash","es":""}}],"lines":[{"id":"l1","account":"exp","side":"DEBIT","amount":2500,"given":["account"]},{"id":"l2","account":"allow","side":"CREDIT","amount":2500,"given":["account"]}],"id":"p3","dimension":"JOURNAL_ENTRY"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000116","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.EMBEDDED.FINANCIAL_ASSET_HOST"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"BANKING","tested_point":"HYBRID_ASSET_NO_SPLIT","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IFRS9.000016","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000016","section_id":"rule-asset-host"},"references":["IFRS 9 §4.3.2"],"exercise":{"prompt":{"fr":"","en":"A fund holds a loan whose interest includes a share in the borrower's revenue. What is the treatment of the hybrid loan?","es":""},"explanation":{"fr":"","en":"Rule to remember: a hybrid financial asset is classified as a whole, without separation (IFRS 9).","es":""},"common_error":{"fr":"","en":"Separating the participation clause of a held loan.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The loan is classified as a block according to its cash flows and the business model","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The loan is split into a plain loan and a participation derivative","es":""},"correct":false,"feedback":{"fr":"","en":"The host is a financial asset: the hybrid asset is not split (IFRS 9).","es":""}},{"id":"C","text":{"fr":"","en":"The loan is measured at amortised cost, the participation being ignored","es":""},"correct":false,"feedback":{"fr":"","en":"The participation is part of the cash flows of the whole and enters the cash flow test (IFRS 9).","es":""}},{"id":"D","text":{"fr":"","en":"The loan is presented as a non-financial asset","es":""},"correct":false,"feedback":{"fr":"","en":"A loan remains a financial asset, even with a participation clause (IFRS 9).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000117","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.EMBEDDED.FINANCIAL_ASSET_HOST","IFRS9.EMBEDDED.SEPARATION_CRITERIA"],"dimension":"ANALYSIS","format":"CLASSIFICATION","context":"ENERGY","tested_point":"HOST_TYPE_SORTING","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS9.000016","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000016","section_id":"rule-separation"},"references":["IFRS 9 §4.3.3"],"exercise":{"prompt":{"fr":"","en":"For each hybrid contract, indicate the starting point of the analysis.","es":""},"explanation":{"fr":"","en":"Rule to remember: financial asset host: classification of the whole; other host: review of the three conditions (IFRS 9, para. 4.3.3).","es":""},"common_error":{"fr":"","en":"Applying the same method whatever the host.","es":""},"format":"CLASSIFICATION","categories":[{"id":"whole","text":{"fr":"","en":"Classification of the whole, without separation","es":""}},{"id":"test","text":{"fr":"","en":"Review of the three separation conditions","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Bond held with an option to convert into the issuer's shares","es":""},"category":"whole"},{"id":"i2","text":{"fr":"","en":"Issued debt whose repayment is indexed to the gas price","es":""},"category":"test"},{"id":"i3","text":{"fr":"","en":"Receivable held whose interest follows a rent index","es":""},"category":"whole"},{"id":"i4","text":{"fr":"","en":"Electricity purchase contract whose price is indexed to an index unrelated to the good","es":""},"category":"test"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000118","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.EMBEDDED.FINANCIAL_ASSET_HOST"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"TELECOM","tested_point":"HYBRID_ASSET_WHOLE_TEST","difficulty":"INTERMEDIATE","estimated_time_s":35,"lesson_id":"LS.IFRS9.000016","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000016","section_id":"rule-asset-host"},"references":["IFRS 9 §4.3.2"],"exercise":{"prompt":{"fr":"","en":"For a hybrid financial asset, the embedded clause is tested separately, independently of the cash flow test of the whole asset.","es":""},"explanation":{"fr":"","en":"Rule to remember: the classification criteria, including the cash flow test, apply to the whole hybrid asset (IFRS 9).","es":""},"common_error":{"fr":"","en":"Thinking the clause is tested apart.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000119","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.EMBEDDED.FINANCIAL_ASSET_HOST"],"dimension":"CALCULATION","format":"MINI_CASE","context":"PHARMA","tested_point":"CONVERTIBLE_HELD_FVTPL","difficulty":"INTERMEDIATE","estimated_time_s":180,"lesson_id":"LS.IFRS9.000016","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000016","section_id":"example-convertible"},"references":["IFRS 9 §4.3.2"],"exercise":{"prompt":{"fr":"","en":"Deal with the convertible bond held by Tevlan.","es":""},"explanation":{"fr":"","en":"Rule to remember: the hybrid asset is measured as a block at fair value through profit or loss and the change goes to profit or loss (IFRS 9).","es":""},"common_error":{"fr":"","en":"Treating the convertible bond as ordinary debt.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Tevlan SA acquired for €250,000 a bond convertible into shares of a biotechnology company. Conversion is at a rate set according to the share price, so the number of shares received is variable. At the reporting date, the bond's fair value is €232,000 (case data).","es":""},"parts":[{"prompt":{"fr":"","en":"How does Tevlan treat the bond?","es":""},"explanation":{"fr":"","en":"Rule to remember: a hybrid asset whose cash flows are not solely principal and interest is measured as a block at fair value through profit or loss (IFRS 9).","es":""},"common_error":{"fr":"","en":"Separating to keep amortised cost on the host.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It splits out the conversion option and measures the debt at amortised cost","es":""},"correct":false,"feedback":{"fr":"","en":"The host is a financial asset: no separation (IFRS 9).","es":""}},{"id":"B","text":{"fr":"","en":"It measures it at amortised cost, since the bond remains debt","es":""},"correct":false,"feedback":{"fr":"","en":"The cash flows are not solely principal and interest: amortised cost is ruled out (IFRS 9).","es":""}},{"id":"C","text":{"fr":"","en":"It measures the whole at fair value through profit or loss","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"It measures it in equity, like a share","es":""},"correct":false,"feedback":{"fr":"","en":"A held asset is not an equity instrument of the entity: it remains a financial asset measured according to its cash flows (IFRS 9).","es":""}}],"id":"p1","dimension":"RULE_KNOWLEDGE"},{"prompt":{"fr":"","en":"Calculate the fair value change for the year (negative if a loss).","es":""},"explanation":{"fr":"","en":"232,000 - 250,000 = -18,000: fair value loss recognised in profit or loss on the whole (IFRS 9).","es":""},"common_error":{"fr":"","en":"Reversing the sign of the change.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Acquisition cost","es":""},"value":"250000","unit":"EUR"},{"label":{"fr":"","en":"Fair value at reporting date","es":""},"value":"232000","unit":"EUR"}],"steps":[{"id":"a","label":{"fr":"","en":"Fair value change","es":""},"answer":-18000,"tolerance":0,"unit":"EUR"}],"id":"p2","dimension":"CALCULATION","formula":{"lines":[{"step":"a","meaning":{"fr":"","en":"Fair value change","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value at reporting date","es":""},"value":232000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Acquisition cost","es":""},"value":250000,"unit":"EUR"}],"result":-18000,"unit":"EUR","rationale":{"fr":"","en":"232,000 - 250,000 = -18,000: fair value loss recognised in profit or loss on the whole (IFRS 9).","es":""}}],"references":["REF.IFRS9.4.3.2"]}},{"prompt":{"fr":"","en":"Post the reporting-date entry.","es":""},"explanation":{"fr":"","en":"Debit fair value loss, credit bond for €18,000; no component is accounted for separately (IFRS 9).","es":""},"common_error":{"fr":"","en":"Crediting a separate derivative instead of the bond.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"loss","text":{"fr":"","en":"Fair value loss (profit or loss)","es":""}},{"id":"bond","text":{"fr":"","en":"Convertible bond held","es":""}},{"id":"cash","text":{"fr":"","en":"Cash","es":""}}],"lines":[{"id":"l1","account":"loss","side":"DEBIT","amount":18000,"given":["account"]},{"id":"l2","account":"bond","side":"CREDIT","amount":18000,"given":["account"]}],"id":"p3","dimension":"JOURNAL_ENTRY"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000120","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.EMBEDDED.SEPARATION_CRITERIA"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"AGRIFOOD","tested_point":"SEPARATION_INITIAL_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS9.000016","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000016","section_id":"entry-separation"},"references":["IFRS 9 §4.3.3"],"exercise":{"prompt":{"fr":"","en":"Selvane SA issues a debt of €800,000 whose repayment is indexed to the wheat price. Pedagogical assumption: the three separation conditions are met; fair value of the derivative at issue: €45,000. Case convention: the host is measured by difference. Post the issue entry.","es":""},"explanation":{"fr":"","en":"Separated derivative: €45,000. Host by difference: 800,000 - 45,000 = €755,000. Total credit = cash debit (IFRS 9, para. 4.3.3).","es":""},"common_error":{"fr":"","en":"Booking the debt at its full amount in addition to the derivative.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"cash","text":{"fr":"","en":"Cash","es":""}},{"id":"der","text":{"fr":"","en":"Derivative liability","es":""}},{"id":"host","text":{"fr":"","en":"Host debt","es":""}},{"id":"exp","text":{"fr":"","en":"Issue expense (profit or loss)","es":""}}],"lines":[{"id":"l1","account":"cash","side":"DEBIT","amount":800000,"given":["account","side"]},{"id":"l2","account":"der","side":"CREDIT","amount":45000,"given":["account"]},{"id":"l3","account":"host","side":"CREDIT","amount":755000,"given":["account"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS9.000121","source":"V2","standard_id":"IFRS9","concept_ids":["IFRS9.EMBEDDED.WHOLE_FVTPL","IFRS9.EMBEDDED.SEPARATION_CRITERIA"],"dimension":"PROFESSIONAL_JUDGMENT","format":"SINGLE_CHOICE","context":"TRANSPORT","tested_point":"WHOLE_FVTPL_LIMITS","difficulty":"ADVANCED","estimated_time_s":60,"lesson_id":"LS.IFRS9.000016","review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000016","section_id":"rule-whole"},"references":["IFRS 9 §4.3.3"],"exercise":{"prompt":{"fr":"","en":"An entity issues a debt that can be prepaid at an amount close to amortised cost. It wishes to designate the whole contract at fair value through profit or loss so as not to separate the option. What can be concluded?","es":""},"explanation":{"fr":"","en":"Rule to remember: designating the whole is not available if the prohibition on separating is obvious (IFRS 9).","es":""},"common_error":{"fr":"","en":"Seeing the designation as a way around the analysis.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The designation is open, since the host is not a financial asset","es":""},"correct":false,"feedback":{"fr":"","en":"The option is excluded where the prohibition on separating is obvious, as for this prepayment feature (IFRS 9).","es":""}},{"id":"B","text":{"fr":"","en":"The designation is open if management documents its intention","es":""},"correct":false,"feedback":{"fr":"","en":"Documentation does not open an option the standard excludes (IFRS 9).","es":""}},{"id":"C","text":{"fr":"","en":"Designation is ruled out for this option, the prohibition on separating being obvious","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Designation is ruled out for a debt, designation being reserved for derivatives","es":""},"correct":false,"feedback":{"fr":"","en":"Designation is not reserved for derivatives; the case is about the exclusion of the option itself (IFRS 9).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000001","standard_id":"IFRS9","concept_ids":["IFRS9.SCOPE.OVERVIEW"],"dimension":"RULE_KNOWLEDGE","context":"V1_VG.IFRS9.000001","tested_point":"VG.IFRS9.000001","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000001","section_id":"rule-scope"},"references":["IFRS 9 §2.1"],"exercise":{"prompt":{"fr":"","en":"Gamma SA applies IFRS 9 to its financial instruments. Which of these items is excluded from the scope of IFRS 9?","es":""},"explanation":{"fr":"","en":"The scope paragraph excludes in particular interests in subsidiaries, associates and joint ventures accounted for under IFRS 10, IAS 27 or IAS 28, the rights and obligations of lease contracts under IFRS 16 (their embedded derivatives remain in scope) and those of insurance contracts under IFRS 17 (IFRS 9, para. 2.1). The list is not exhaustive. Trap: Also excluding the derivative embedded in a lease contract. Rule to remember: Interests in associates are excluded from IFRS 9, but derivatives embedded in a lease contract remain in scope (IFRS 9, para. 2.1).","es":""},"common_error":{"fr":"","en":"Excluding from the scope of IFRS 9 the derivative embedded in a lease contract together with the contract itself.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A derivative embedded in a lease contract, when that contract falls under IFRS 16.","es":""},"correct":false,"feedback":{"fr":"","en":"The rights and obligations of a lease contract under IFRS 16 are excluded, but derivatives embedded in such a contract remain within the scope of IFRS 9 (IFRS 9, para. 2.1). Excluding the derivative together with the contract confuses the host contract with the embedded instrument. Rule to remember: The lease contract is excluded from the scope, not its embedded derivative (IFRS 9, para. 2.1).","es":""}},{"id":"B","text":{"fr":"","en":"An interest in an associate, accounted for under IAS 28.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A loan granted to a customer, which the entity holds to collect the repayments.","es":""},"correct":false,"feedback":{"fr":"","en":"A loan granted to a customer is a financial asset that is not one of the items excluded by the scope paragraph, which covers in particular interests in subsidiaries, associates and joint ventures, lease contracts and insurance contracts (IFRS 9, para. 2.1). Rule to remember: A loan held is not excluded from the scope of IFRS 9 (IFRS 9, para. 2.1).","es":""}},{"id":"D","text":{"fr":"","en":"A government bond, acquired to receive the interest.","es":""},"correct":false,"feedback":{"fr":"","en":"A bond acquired to receive the interest is a financial asset: the scope exclusions cover specific rights and obligations (subsidiaries, associates, joint ventures, lease contracts, insurance contracts, some loan commitments), not investments in bonds (IFRS 9, para. 2.1). Rule to remember: An investment in bonds remains within the scope of IFRS 9 (IFRS 9, para. 2.1).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000002","standard_id":"IFRS9","concept_ids":["IFRS9.SCOPE.OVERVIEW"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS9.000002","tested_point":"QST.IFRS9.000002","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000001","section_id":"rule-scope"},"references":["IFRS 9 §2.1"],"exercise":{"prompt":{"fr":"","en":"When a loan commitment remains outside the scope of IFRS 9, the issuer nevertheless applies the impairment requirements of the standard to that commitment.","es":""},"explanation":{"fr":"","en":"Loan commitments that remain outside the scope are excluded from the standard, but the issuer nevertheless applies the impairment requirements to them (IFRS 9, para. 2.1). Trap: Concluding that an exclusion from the scope removes the impairment requirements for the instrument concerned. Rule to remember: A loan commitment excluded from the scope remains subject to the impairment requirements for the issuer (IFRS 9, para. 2.1).","es":""},"common_error":{"fr":"","en":"Thinking that a loan commitment outside the scope has no further link with the impairment requirements.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000003","standard_id":"IFRS9","concept_ids":["IFRS9.SCOPE.OVERVIEW"],"dimension":"APPLICATION","context":"V1_VG.IFRS9.000001","tested_point":"VG.IFRS9.000001","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000001","section_id":"rule-scope"},"references":["IFRS 9 §2.1"],"exercise":{"prompt":{"fr":"","en":"Delta SA holds (1) a subsidiary whose interest is accounted for under IFRS 10, (2) a lease contract under IFRS 16 that includes an embedded derivative, and (3) government bonds acquired to receive the interest. Which analysis of the scope of IFRS 9 is consistent?","es":""},"explanation":{"fr":"","en":"The analysis follows the scope paragraph: interests in subsidiaries under IFRS 10 and the rights and obligations of lease contracts under IFRS 16 are excluded; the derivative embedded in the lease contract remains within the scope of IFRS 9, like the bonds held (IFRS 9, para. 2.1). Trap: Treating the lease contract and its embedded derivative in the same way. Rule to remember: The lease contract is excluded from IFRS 9, its embedded derivative remains in scope (IFRS 9, para. 2.1).","es":""},"common_error":{"fr":"","en":"Extending the exclusion of the lease contract to its embedded derivative.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The interest in the subsidiary, the lease contract and its embedded derivative are excluded; the bonds fall within the scope.","es":""},"correct":false,"feedback":{"fr":"","en":"The lease contract is excluded, but the derivative it includes remains within the scope of IFRS 9 (IFRS 9, para. 2.1). Taking the derivative out together with the contract extends the exclusion beyond what the paragraph provides. Rule to remember: A derivative embedded in a lease contract remains within the scope of IFRS 9 (IFRS 9, para. 2.1).","es":""}},{"id":"B","text":{"fr":"","en":"The lease contract and its embedded derivative are excluded; the interest in the subsidiary and the bonds fall within the scope.","es":""},"correct":false,"feedback":{"fr":"","en":"Interests in subsidiaries accounted for under IFRS 10 are among the exclusions from the scope (IFRS 9, para. 2.1); bringing them into IFRS 9 reverses the rule. The derivative embedded in the lease contract, however, remains in scope. Rule to remember: Interests in subsidiaries accounted for under IFRS 10 are excluded from the scope of IFRS 9 (IFRS 9, para. 2.1).","es":""}},{"id":"C","text":{"fr":"","en":"The interest in the subsidiary is excluded; the lease contract, its embedded derivative and the bonds fall within the scope.","es":""},"correct":false,"feedback":{"fr":"","en":"The rights and obligations of a lease contract under IFRS 16 are excluded from the scope; it is its embedded derivatives that remain in it (IFRS 9, para. 2.1). Placing the whole contract in IFRS 9 confuses the contract with the embedded instrument. Rule to remember: The lease contract under IFRS 16 is excluded, its embedded derivative is not (IFRS 9, para. 2.1).","es":""}},{"id":"D","text":{"fr":"","en":"The interest in the subsidiary and the lease contract are excluded; the embedded derivative and the bonds remain in scope.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000004","standard_id":"IFRS9","concept_ids":["IFRS9.DEFINITIONS.CREDIT_TERMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS9.000004","tested_point":"QST.IFRS9.000004","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000012","section_id":"rule-terms"},"references":["IFRS 9","IFRS 9 §B5.4.7"],"exercise":{"prompt":{"fr":"","en":"A financial asset acquired with a high credit risk is, for that reason, a credit-impaired financial asset.","es":""},"explanation":{"fr":"","en":"A financial asset is credit-impaired when one or more events that have a detrimental effect on its estimated future cash flows have occurred (stage 3; IFRS 9, Appendix A); a high credit risk at initial recognition is not enough, by itself, to make it credit-impaired from origination (IFRS 9, para. B5.4.7). Trap: Equating a high credit risk with impairment. Rule to remember: An asset is credit-impaired following adverse events on its estimated cash flows, not solely because of a high risk at origination (IFRS 9, Appendix A and para. B5.4.7).","es":""},"common_error":{"fr":"","en":"Placing in stage 3 an asset bought with a high credit risk without any adverse event having occurred.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000005","standard_id":"IFRS9","concept_ids":["IFRS9.DEFINITIONS.CREDIT_TERMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS9.000005","tested_point":"QST.IFRS9.000005","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000012","section_id":"rule-terms"},"references":["IFRS 9"],"exercise":{"prompt":{"fr":"","en":"According to the defined terms of IFRS 9, what does the 12-month expected credit loss represent?","es":""},"explanation":{"fr":"","en":"A credit loss is the difference between the contractual cash flows due and the cash flows the entity expects to receive; the expected loss is its weighted average, with the risks of default as weights; the 12-month loss is the portion of the lifetime loss that results from defaults possible within 12 months after the reporting date (IFRS 9, Appendix A, A.CREDIT). Trap: Confusing the 12-month loss with the lifetime loss. Rule to remember: The 12-month loss is a portion of the lifetime loss, linked to defaults possible within 12 months (IFRS 9, Appendix A).","es":""},"common_error":{"fr":"","en":"Measuring the 12-month loss over the whole life of the instrument.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The portion of lifetime losses due to defaults possible within 12 months after the reporting date.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The expected credit losses up to the maturity of the instrument, including beyond the next 12 months.","es":""},"correct":false,"feedback":{"fr":"","en":"These losses are the lifetime expected losses, which extend beyond the 12 months after the reporting date; the 12-month loss is a portion of them (IFRS 9, Appendix A). Taking the whole lifetime overstates the 12-month loss. Rule to remember: The 12-month loss is the portion of the lifetime loss due to defaults possible within 12 months (IFRS 9, Appendix A).","es":""}},{"id":"C","text":{"fr":"","en":"The credit losses actually recorded by the entity during the 12 months before the reporting date.","es":""},"correct":false,"feedback":{"fr":"","en":"The 12-month expected loss relates to defaults possible in the 12 months following the reporting date, not to losses already recorded during the previous 12 months (IFRS 9, Appendix A). Confusing expected loss with realised loss looks in the wrong direction in time. Rule to remember: The 12-month loss is measured over the 12 months following the reporting date (IFRS 9, Appendix A).","es":""}},{"id":"D","text":{"fr":"","en":"The lifetime expected loss, brought down to one year by dividing it by the remaining term.","es":""},"correct":false,"feedback":{"fr":"","en":"The 12-month loss is not a loss annualised by simple proportion: it is the portion of the lifetime loss resulting from defaults possible within 12 months after the reporting date (IFRS 9, Appendix A). Dividing the total loss by the remaining term ignores when defaults may occur. Rule to remember: The 12-month loss depends on defaults possible within 12 months, not on a proportion of the term (IFRS 9, Appendix A).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000006","standard_id":"IFRS9","concept_ids":["IFRS9.DEFINITIONS.CREDIT_TERMS"],"dimension":"ANALYSIS","context":"V1_QST.IFRS9.000006","tested_point":"QST.IFRS9.000006","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000012","section_id":"rule-terms"},"references":["IFRS 9","IFRS 9 §B5.5.37"],"exercise":{"prompt":{"fr":"","en":"An employee summarises in a memo the credit risk terms defined by IFRS 9. Which of these sentences is wrong?","es":""},"explanation":{"fr":"","en":"Three sentences restate the terms of Appendix A: the credit loss (contractual cash flows due less cash flows expected), the expected loss (average weighted by the risks of default) and the credit-impaired asset (adverse events on estimated cash flows). The wrong sentence is the one that gives the standard a definition of default: the entity uses its internal definition, consistent with its credit risk management, the standard only setting a rebuttable presumption of default no later than 90 days past due (IFRS 9, para. B5.5.37). Trap: Looking in the standard for a definition of default. Rule to remember: IFRS 9 does not define default: the entity uses its internal definition, subject to the rebuttable 90-day presumption (IFRS 9, para. B5.5.37).","es":""},"common_error":{"fr":"","en":"Applying a definition of default assumed to be imposed by the standard.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A credit loss is the difference between the contractual cash flows due and the cash flows the entity expects to receive.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is accurate: a credit loss is measured by the gap between the contractual cash flows due and the cash flows expected (IFRS 9, Appendix A). The error to spot lies in the sentence that attributes to the standard a definition of default. Rule to remember: A credit loss is the gap between contractual and expected cash flows (IFRS 9, Appendix A).","es":""}},{"id":"B","text":{"fr":"","en":"The expected credit loss is a weighted average of credit losses, with the risks of default as weights.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is accurate: the expected loss is the weighted average of credit losses, with the risks of default as weights (IFRS 9, Appendix A). It does not contain the error sought, which concerns the definition of default. Rule to remember: The expected loss is an average weighted by the risks of default (IFRS 9, Appendix A).","es":""}},{"id":"C","text":{"fr":"","en":"IFRS 9 defines default, and each entity must adopt that definition to identify its credit-impaired assets.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A financial asset is credit-impaired when events with a detrimental effect on its estimated future cash flows have occurred.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is accurate: an asset is credit-impaired when one or more events that are adverse for its estimated future cash flows have occurred (IFRS 9, Appendix A). The error sought is in another sentence, the one that gives the standard a definition of default. Rule to remember: Impairment follows adverse events on the estimated cash flows (IFRS 9, Appendix A).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000007","standard_id":"IFRS9","concept_ids":["IFRS9.RECOGNITION.INITIAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS9.000007","tested_point":"QST.IFRS9.000007","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000002","section_id":"rule-recognition"},"references":["IFRS 9 §3.1.1"],"exercise":{"prompt":{"fr":"","en":"An entity recognises a financial asset when, and only when, it becomes party to the contractual provisions of the instrument.","es":""},"explanation":{"fr":"","en":"A financial asset enters the statement of financial position on the date the entity becomes party to the contractual provisions of the instrument, and not before (IFRS 9, para. 3.1.1). Trap: Waiting for the cash receipt or the delivery to recognise a contractual right already acquired. Rule to remember: The initial recognition of a financial asset follows the moment the entity becomes party to the contract (IFRS 9, para. 3.1.1).","es":""},"common_error":{"fr":"","en":"Waiting for the disbursement or the collection of cash flows before recognising the instrument.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000008","standard_id":"IFRS9","concept_ids":["IFRS9.RECOGNITION.INITIAL"],"dimension":"APPLICATION","context":"V1_QST.IFRS9.000008","tested_point":"QST.IFRS9.000008","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000002","section_id":"rule-recognition"},"references":["IFRS 9 §3.1.1","IFRS 9"],"exercise":{"prompt":{"fr":"","en":"On 30 December, a customer of Sigma SA orders the transfer that settles a trade receivable; the cash is credited to Sigma's bank account only on 2 January. Sigma wishes to recognise the cash from 31 December by invoking the regime for regular way purchases and sales of financial assets. Which analysis is consistent with IFRS 9?","es":""},"explanation":{"fr":"","en":"Cash received in settlement of a trade receivable is not recognised before the receivable is derecognised (IFRS 9, para. 3.1.1). According to the analysis of the Interpretations Committee, the regular way regime applies only to purchases and sales of financial assets, not to other transactions such as the settlement of a receivable by bank transfer. Trap: Invoking the choice of trade date to bring the receipt forward. Rule to remember: Settling a receivable by bank transfer does not open the choice of the trade date (IFRS 9, para. 3.1.1).","es":""},"common_error":{"fr":"","en":"Applying the regular way regime to the settlement of a receivable by bank transfer.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The cash is recognised on 31 December, because the trade date regime also covers the settlement of a receivable by bank transfer.","es":""},"correct":false,"feedback":{"fr":"","en":"According to the analysis of the Interpretations Committee, the regular way regime applies only to purchases and sales of financial assets, not to other transactions such as the settlement of a receivable by bank transfer; it therefore does not allow the recognition of the cash to be brought forward (IFRS 9, para. 3.1.1). Rule to remember: Cash received in settlement of a receivable is not recognised before the receivable is derecognised (IFRS 9, para. 3.1.1).","es":""}},{"id":"B","text":{"fr":"","en":"This settlement is not a purchase or sale of a financial asset; the cash is not recognised before the receivable is derecognised.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Sigma chooses between the date of the transfer order and the date of the bank credit, as for a regular way purchase of listed securities.","es":""},"correct":false,"feedback":{"fr":"","en":"The choice between trade date and settlement date concerns regular way purchases and sales of financial assets, not the settlement of a receivable by bank transfer, according to the analysis of the Interpretations Committee. The rule for recognising the cash leaves no such choice (IFRS 9, para. 3.1.1). Rule to remember: Cash received in settlement of a receivable is not recognised before the receivable is derecognised (IFRS 9, para. 3.1.1).","es":""}},{"id":"D","text":{"fr":"","en":"The cash is recognised on the date of the transfer order, because Sigma has then become party to the banking transaction.","es":""},"correct":false,"feedback":{"fr":"","en":"Becoming party to a transaction is not enough to recognise the cash: cash received in settlement of a receivable is not recognised before that receivable is derecognised (IFRS 9, para. 3.1.1). The customer's order alone does not yet settle the receivable in Sigma's books. Rule to remember: The date of the transfer order does not trigger recognition of the cash (IFRS 9, para. 3.1.1).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000010","standard_id":"IFRS9","concept_ids":["IFRS9.RECOGNITION.REGULAR_WAY"],"dimension":"CALCULATION","context":"V1_QST.IFRS9.000010","tested_point":"QST.IFRS9.000010","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000002","section_id":"rule-regular-way"},"references":["IFRS 9 §3.1.2"],"exercise":{"prompt":{"fr":"","en":"On 28 December, Tau SA enters into a regular way purchase of bonds whose fair value at the trade date is {fair_value_trade}. Settlement and delivery take place on 3 January, when the fair value of the bonds is {fair_value_settlement}. Calculate the change in fair value between the trade date and the settlement date. The accounting treatment of this change is not asked.","es":""},"explanation":{"fr":"","en":"Approach: 483,500 − 480,000 = 3,500: the change compares the fair value at the settlement date with that at the trade date. For a regular way purchase, the entity applies trade date or settlement date accounting (IFRS 9, para. 3.1.2); the difference in value that arises between the two dates is what is measured here, without prejudging its treatment. Trap: Reversing the two dates, which would give −3,500. Rule to remember: A regular way purchase or sale is recognised at the trade date or at the settlement date (IFRS 9, para. 3.1.2).","es":""},"common_error":{"fr":"","en":"Subtracting in the wrong direction and getting a change of the opposite sign.","es":""},"format":"CALCULATION","placeholders":[{"id":"fair_value_trade","value":"480000","unit":"EUR"},{"id":"fair_value_settlement","value":"483500","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Fair value at the trade date","es":""},"value":"480000","unit":"EUR"},{"label":{"fr":"","en":"Fair value at the settlement date","es":""},"value":"483500","unit":"EUR"}],"steps":[{"id":"FV_CHANGE","label":{"fr":"","en":"Change in fair value","es":""},"answer":3500,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"FV_CHANGE","meaning":{"fr":"","en":"Change in fair value","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value at the settlement date","es":""},"value":483500,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Fair value at the trade date","es":""},"value":480000,"unit":"EUR"}],"result":3500,"unit":"EUR"}],"rationale":{"fr":"","en":"A regular way purchase or sale is recognised at the trade date or at the settlement date (IFRS 9, para. 3.1.2).","es":""},"references":["REF.IFRS9.3.1.2"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000012","standard_id":"IFRS9","concept_ids":["IFRS9.DERECOGNITION.PASS_THROUGH"],"dimension":"APPLICATION","context":"V1_QST.IFRS9.000012","tested_point":"QST.IFRS9.000012","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000003","section_id":"rule-pass-through"},"references":["IFRS 9 §3.2.5"],"exercise":{"prompt":{"fr":"","en":"Rho SA continues to collect the repayments of a loan portfolio and has undertaken to pass those collections on to investors. The contract requires it to pay the investors the amounts provided for even when the debtors do not pay it; it prohibits Rho from selling the loans; Rho passes the collections on without significant delay. Which conclusion on the pass-through arrangement is consistent?","es":""},"explanation":{"fr":"","en":"A pass-through arrangement meets three cumulative conditions: the entity has no obligation to pay amounts to the eventual recipients unless it collects equivalent amounts from the original asset; the transfer contract prohibits it from selling or pledging the original asset (except as security to the recipients); it must remit the collections without significant delay (IFRS 9, para. 3.2.5). Rho meets the second and third conditions, but not the first. Trap: Concluding on the whole from the conditions that are met. Rule to remember: The three pass-through conditions are cumulative (IFRS 9, para. 3.2.5).","es":""},"common_error":{"fr":"","en":"Concluding that the arrangement is a pass-through because two of the three conditions are met.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It meets the three conditions, because Rho passes the collections on without significant delay and cannot sell the loans.","es":""},"correct":false,"feedback":{"fr":"","en":"The three conditions are cumulative: if one is not met, the arrangement is not a pass-through. Here Rho must pay the investors even without having collected from the debtors, which contradicts the first condition (IFRS 9, para. 3.2.5). Rule to remember: The three pass-through conditions must be met together (IFRS 9, para. 3.2.5).","es":""}},{"id":"B","text":{"fr":"","en":"It does not meet the second condition, because the contract prohibits Rho from selling the loans.","es":""},"correct":false,"feedback":{"fr":"","en":"The prohibition on selling or pledging the original asset (except as security to the recipients) is precisely what the second condition requires (IFRS 9, para. 3.2.5). It is therefore met here; the condition that fails is the first. Rule to remember: The second condition is met when the contract prohibits selling or pledging the original asset (IFRS 9, para. 3.2.5).","es":""}},{"id":"C","text":{"fr":"","en":"It does not meet the third condition, because Rho passes the collections on to the investors instead of keeping them.","es":""},"correct":false,"feedback":{"fr":"","en":"The third condition requires the entity to pass the collections on without significant delay, which is the case here (IFRS 9, para. 3.2.5). Passing the collections on is not a defect: it is the very purpose of a pass-through arrangement. Rule to remember: Passing the collections on without significant delay satisfies the third condition (IFRS 9, para. 3.2.5).","es":""}},{"id":"D","text":{"fr":"","en":"It does not meet the first condition, because Rho must pay amounts to the investors without collecting equivalent amounts from the original loans.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000013","standard_id":"IFRS9","concept_ids":["IFRS9.DERECOGNITION.LIABILITY_EXTINGUISHMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS9.000013","tested_point":"QST.IFRS9.000013","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000004","section_id":"rule-extinguishment"},"references":["IFRS 9 §3.3.1"],"exercise":{"prompt":{"fr":"","en":"In which case is a financial liability removed from the statement of financial position under IFRS 9?","es":""},"explanation":{"fr":"","en":"A financial liability (or part of it) is removed from the statement of financial position when, and only when, it is extinguished, that is, when the obligation is discharged, cancelled or expired (IFRS 9, para. 3.3.1). Trap: Removing the debt on the basis of an intention to pay, a passed due date or funds set aside. Rule to remember: A financial liability is removed when it is extinguished (IFRS 9, para. 3.3.1).","es":""},"common_error":{"fr":"","en":"Removing a liability because the due date has passed although the debt is not paid.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"When the entity intends to repay it at its next contractual due date.","es":""},"correct":false,"feedback":{"fr":"","en":"An intention to repay is not enough: the liability is removed when the obligation is extinguished, that is, discharged, cancelled or expired, not when the entity plans to settle it (IFRS 9, para. 3.3.1). As long as the debt exists, it stays on the statement of financial position. Rule to remember: A financial liability is removed when, and only when, it is extinguished (IFRS 9, para. 3.3.1).","es":""}},{"id":"B","text":{"fr":"","en":"When the contractual due date has passed, whether or not the payment has been made.","es":""},"correct":false,"feedback":{"fr":"","en":"A passed due date does not extinguish the debt: if the payment has not been made and the obligation is neither cancelled nor expired, the liability stays recognised (IFRS 9, para. 3.3.1). Being late is not the same as extinguishment. Rule to remember: An obligation is extinguished when it is discharged, cancelled or expired (IFRS 9, para. 3.3.1).","es":""}},{"id":"C","text":{"fr":"","en":"When it is extinguished, that is, when the obligation is discharged, cancelled or expired.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"When the entity sets funds aside to repay it, while remaining the debtor of the debt.","es":""},"correct":false,"feedback":{"fr":"","en":"Setting funds aside leaves the entity as debtor: the obligation is neither discharged, nor cancelled, nor expired, so the liability is not extinguished (IFRS 9, para. 3.3.1). The availability of funds does not change the status of the debt. Rule to remember: The liability stays recognised as long as the obligation is not extinguished (IFRS 9, para. 3.3.1).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000014","standard_id":"IFRS9","concept_ids":["IFRS9.DERECOGNITION.LIABILITY_EXTINGUISHMENT"],"dimension":"CALCULATION","context":"V1_VG.IFRS9.000002","tested_point":"VG.IFRS9.000002","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000004","section_id":"rule-extinguishment"},"references":["IFRS 9 §3.3.1","IFRS 9 §3.3.3"],"exercise":{"prompt":{"fr":"","en":"Kappa SA repays a loan early; its carrying amount is {carrying_amount}. It pays the lender {consideration_paid} to extinguish the debt. Calculate the gain on extinguishment to be recognised in profit or loss (give it as a positive amount).","es":""},"explanation":{"fr":"","en":"Approach: 1,200,000 − 1,130,000 = 70,000: the difference between the carrying amount of the extinguished liability and the consideration paid is recognised in profit or loss (IFRS 9, para. 3.3.3); here it is a gain, because Kappa pays less than the carrying amount of the debt. Trap: Calculating the difference the other way round, which would give a loss of 70,000. Rule to remember: The gain or loss on extinguishment is the difference between the carrying amount of the extinguished liability and the consideration paid (IFRS 9, para. 3.3.3).","es":""},"common_error":{"fr":"","en":"Swapping carrying amount and consideration paid, which changes the nature of the result.","es":""},"format":"CALCULATION","placeholders":[{"id":"carrying_amount","value":"1200000","unit":"EUR"},{"id":"consideration_paid","value":"1130000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Carrying amount of the extinguished liability","es":""},"value":"1200000","unit":"EUR"},{"label":{"fr":"","en":"Consideration paid","es":""},"value":"1130000","unit":"EUR"}],"steps":[{"id":"GAIN","label":{"fr":"","en":"Gain on extinguishment","es":""},"answer":70000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"GAIN","meaning":{"fr":"","en":"Gain on extinguishment","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount of the extinguished liability","es":""},"value":1200000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Consideration paid","es":""},"value":1130000,"unit":"EUR"}],"result":70000,"unit":"EUR","rationale":{"fr":"","en":"Approach: 1,200,000 − 1,130,000 = 70,000: the difference between the carrying amount of the extinguished liability and the consideration paid is recognised in profit or loss (IFRS 9, para. 3.3.3)","es":""}}],"rationale":{"fr":"","en":"The gain or loss on extinguishment is the difference between the carrying amount of the extinguished liability and the consideration paid (IFRS 9, para. 3.3.3).","es":""},"references":["REF.IFRS9.3.3.1","REF.IFRS9.3.3.3"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000016","standard_id":"IFRS9","concept_ids":["IFRS9.DERECOGNITION.LIABILITY_MODIFICATION"],"dimension":"ANALYSIS","context":"V1_QST.IFRS9.000016","tested_point":"QST.IFRS9.000016","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000004","section_id":"rule-modification"},"references":["IFRS 9 §3.3.2","IFRS 9 §B3.3.6"],"exercise":{"prompt":{"fr":"","en":"A colleague summarises the treatment of the modification of a financial liability. Which of these sentences is wrong?","es":""},"explanation":{"fr":"","en":"The 10% test discounts the cash flows at the original effective interest rate: the present value of the cash flows under the new terms, including fees paid net of fees received, is compared with that of the remaining cash flows of the original liability (IFRS 9, para. B3.3.6). If the difference is at least 10%, the modification is substantial and the original liability is extinguished (IFRS 9, para. 3.3.2). Trap: Discounting at the rate of the new debt. Rule to remember: The 10% test uses the original effective interest rate (IFRS 9, para. B3.3.6).","es":""},"common_error":{"fr":"","en":"Discounting the new cash flows at the effective rate of the new debt in the 10% test.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"In the 10% test, the cash flows are discounted at the effective interest rate of the new debt.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"A substantial modification of the terms of an existing liability is accounted for as the extinguishment of the original liability and the recognition of a new liability.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is accurate: a substantial modification of the terms is accounted for as the extinguishment of the original liability and the recognition of a new liability (IFRS 9, para. 3.3.2). The error to spot concerns the discount rate of the test. Rule to remember: A substantial modification is treated as extinguishment and a new liability (IFRS 9, para. 3.3.2).","es":""}},{"id":"C","text":{"fr":"","en":"The 10% test compares the present value of the cash flows under the new terms with that of the remaining cash flows of the original liability.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is accurate: the test compares the present value of the cash flows under the new terms with that of the remaining cash flows of the original liability (IFRS 9, para. B3.3.6). It does not contain the error sought, which concerns the rate used. Rule to remember: The 10% test compares two present values (IFRS 9, para. B3.3.6).","es":""}},{"id":"D","text":{"fr":"","en":"A substantial modification is treated as an extinguishment, whether or not it is due to the financial difficulties of the debtor.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is accurate: a substantial modification is accounted for as an extinguishment, whether or not it is due to the financial difficulties of the debtor (IFRS 9, para. 3.3.2). The error sought is in the sentence on the discount rate. Rule to remember: The cause of the modification does not change its treatment when it is substantial (IFRS 9, para. 3.3.2).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000017","standard_id":"IFRS9","concept_ids":["IFRS9.DERECOGNITION.LIABILITY_MODIFICATION"],"dimension":"CALCULATION","context":"V1_QST.IFRS9.000017","tested_point":"QST.IFRS9.000017","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000004","section_id":"rule-modification"},"references":["IFRS 9 §B3.3.6","IFRS 9 §3.3.2"],"exercise":{"prompt":{"fr":"","en":"Mu SA has a loan whose only remaining cash flow is a repayment of {original_flow} in 2 years; its original effective interest rate is {effective_rate}. The parties modify the terms: the only cash flow becomes {new_flow} in 3 years, and Mu pays {fees_paid} of fees to the lender and receives {fees_received}. Pedagogical assumption: a single final cash flow, no coupon. Calculate the present value of the new terms (fees net, original rate), the difference from the present value of the original cash flows and the 10% threshold.","es":""},"explanation":{"fr":"","en":"Approach: Original cash flow: 1,210,000 / 1.10 to the power of 2 = 1,000,000. New cash flow: 1,450,790 / 1.10 to the power of 3 = 1,090,000, plus net fees 45,000 − 15,000 = 30,000, i.e. 1,120,000. Difference: 1,120,000 − 1,000,000 = 120,000. Threshold: 10% × 1,000,000 = 100,000. The difference exceeds the threshold: the terms are substantially different (10% test) (IFRS 9, para. B3.3.6) and the original liability is extinguished (IFRS 9, para. 3.3.2). Trap: Forgetting the net fees, which would bring the difference down to 90,000, below the threshold. Rule to remember: The 10% test includes fees paid net of fees received (IFRS 9, para. B3.3.6).","es":""},"common_error":{"fr":"","en":"Leaving the net fees out of the present value of the new terms.","es":""},"format":"CALCULATION","placeholders":[{"id":"original_flow","value":"1210000","unit":"EUR"},{"id":"effective_rate","value":"10","unit":"PERCENT"},{"id":"new_flow","value":"1450790","unit":"EUR"},{"id":"fees_paid","value":"45000","unit":"EUR"},{"id":"fees_received","value":"15000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Original remaining cash flow","es":""},"value":"1210000","unit":"EUR"},{"label":{"fr":"","en":"Original effective interest rate","es":""},"value":"10","unit":"PERCENT"},{"label":{"fr":"","en":"Cash flow under the new terms","es":""},"value":"1450790","unit":"EUR"},{"label":{"fr":"","en":"Fees paid","es":""},"value":"45000","unit":"EUR"},{"label":{"fr":"","en":"Fees received","es":""},"value":"15000","unit":"EUR"}],"steps":[{"id":"PV_NEW_TERMS","label":{"fr":"","en":"Present value of the new terms","es":""},"answer":1120000,"tolerance":0,"unit":"EUR"},{"id":"DIFFERENCE","label":{"fr":"","en":"Difference in present values","es":""},"answer":120000,"tolerance":0,"unit":"EUR"},{"id":"THRESHOLD","label":{"fr":"","en":"10% threshold","es":""},"answer":100000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000019","standard_id":"IFRS9","concept_ids":["IFRS9.CLASSIF_LIABS.FAIR_VALUE_OPTION"],"dimension":"APPLICATION","context":"V1_QST.IFRS9.000019","tested_point":"QST.IFRS9.000019","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000008","section_id":"rule-fvo"},"references":["IFRS 9 §4.2.2"],"exercise":{"prompt":{"fr":"","en":"Pelsa SA issues a loan whose rate is indexed to an index. It holds assets measured at fair value through profit or loss (FVTPL) whose fair value changes largely offset those of the debt. Measured at amortised cost, the debt would create an accounting mismatch. Nu is considering designating the debt at FVTPL. Which analysis is consistent with IFRS 9?","es":""},"explanation":{"fr":"","en":"At initial recognition, the entity may irrevocably designate a financial liability at FVTPL if this designation eliminates or significantly reduces an accounting mismatch; the portion of the fair value change attributable to own credit risk is then treated under paragraph 5.7.7 (IFRS 9, para. 4.2.2). Professional judgement: assessing whether the reduction of the mismatch is significant. Trap: Designating the liability later, or believing the designation is reversible. Rule to remember: The designation of a liability at FVTPL is possible at initial recognition and is irrevocable (IFRS 9, para. 4.2.2).","es":""},"common_error":{"fr":"","en":"Considering that a liability designated at FVTPL can later be brought back to amortised cost.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The designation is possible at a later reporting date, when the mismatch appears in the accounts of the entity.","es":""},"correct":false,"feedback":{"fr":"","en":"Designation at FVTPL is decided at the initial recognition of the liability, not at a later reporting date (IFRS 9, para. 4.2.2). Waiting for the mismatch to appear in the accounts means letting pass the moment when designation was possible. Rule to remember: The designation of a liability at FVTPL is made at initial recognition (IFRS 9, para. 4.2.2).","es":""}},{"id":"B","text":{"fr":"","en":"It is possible at initial recognition, because it significantly reduces the mismatch; it is irrevocable.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The designation is not possible, because a financial liability is measured at amortised cost.","es":""},"correct":false,"feedback":{"fr":"","en":"Measurement at amortised cost does not rule out designation: at initial recognition, the entity may irrevocably designate a liability at FVTPL if this eliminates or significantly reduces an accounting mismatch (IFRS 9, para. 4.2.2). This is exactly the situation described. Rule to remember: A liability may be designated at FVTPL to eliminate or significantly reduce an accounting mismatch (IFRS 9, para. 4.2.2).","es":""}},{"id":"D","text":{"fr":"","en":"The designation is possible at initial recognition, but Nu will be able to cancel it if the mismatch disappears later.","es":""},"correct":false,"feedback":{"fr":"","en":"The designation is irrevocable: once made at initial recognition, Nu cannot cancel it, even if the mismatch later disappears (IFRS 9, para. 4.2.2). This finality requires the choice to be weighed from issue. Rule to remember: The designation of a liability at FVTPL is irrevocable (IFRS 9, para. 4.2.2).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000021","standard_id":"IFRS9","concept_ids":["IFRS9.MEASUREMENT.INITIAL"],"dimension":"CALCULATION","context":"V1_QST.IFRS9.000021","tested_point":"QST.IFRS9.000021","difficulty":"BEGINNER","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000002","section_id":"rule-initial"},"references":["IFRS 9 §5.1.1"],"exercise":{"prompt":{"fr":"","en":"Omega SA acquires bonds that it will subsequently measure at amortised cost (case assumption). The fair value at acquisition is {fair_value}; Omega also pays {transaction_costs} of brokerage fees directly attributable to the acquisition. Calculate the initial carrying amount of the bonds.","es":""},"explanation":{"fr":"","en":"Approach: 250,000 + 3,750 = 253,750: a financial asset not measured at FVTPL is initially measured at fair value, plus the transaction costs directly attributable to its acquisition (IFRS 9, para. 5.1.1). Trap: Using only the fair value (250,000) or deducting the costs (246,250), which applies to a liability and not to an asset. Rule to remember: For a financial asset not measured at FVTPL, directly attributable transaction costs are added to fair value (IFRS 9, para. 5.1.1).","es":""},"common_error":{"fr":"","en":"Deducting the transaction costs from the fair value of an asset.","es":""},"format":"CALCULATION","placeholders":[{"id":"fair_value","value":"250000","unit":"EUR"},{"id":"transaction_costs","value":"3750","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Fair value at acquisition","es":""},"value":"250000","unit":"EUR"},{"label":{"fr":"","en":"Directly attributable transaction costs","es":""},"value":"3750","unit":"EUR"}],"steps":[{"id":"INITIAL_AMOUNT","label":{"fr":"","en":"Initial carrying amount","es":""},"answer":253750,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"INITIAL_AMOUNT","meaning":{"fr":"","en":"Initial carrying amount","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value at acquisition","es":""},"value":250000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Directly attributable transaction costs","es":""},"value":3750,"unit":"EUR"}],"result":253750,"unit":"EUR","rationale":{"fr":"","en":"Approach: 250,000 + 3,750 = 253,750: a financial asset not measured at FVTPL is initially measured at fair value, plus the transaction costs directly attributable to its acquisition (IFRS 9, para. 5.1.1).","es":""}}],"rationale":{"fr":"","en":"For a financial asset not measured at FVTPL, directly attributable transaction costs are added to fair value (IFRS 9, para. 5.1.1).","es":""},"references":["REF.IFRS9.5.1.1"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000023","standard_id":"IFRS9","concept_ids":["IFRS9.MEASUREMENT.INITIAL"],"dimension":"APPLICATION","context":"V1_QST.IFRS9.000023","tested_point":"QST.IFRS9.000023","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000002","section_id":"rule-initial"},"references":["IFRS 9 §5.1.1"],"exercise":{"prompt":{"fr":"","en":"Rhô SA issues a bond that it will subsequently measure at amortised cost. The fair value at issue is 5,000,000; the nominal amount to be repaid is 5,150,000; Rhô pays 60,000 of directly attributable issue costs. What is the initial carrying amount of the liability?","es":""},"explanation":{"fr":"","en":"A financial liability not measured at FVTPL is initially measured at fair value, adjusted for the transaction costs directly attributable to its issue, which are deducted for a liability (IFRS 9, para. 5.1.1). Approach: 5,000,000 − 60,000 = 4,940,000. The nominal amount of 5,150,000 is a case datum that plays no part in the initial amount. Trap: Adding the costs as for an asset. Rule to remember: For a financial liability, the initial amount is fair value less transaction costs (IFRS 9, para. 5.1.1).","es":""},"common_error":{"fr":"","en":"Applying to a liability the addition of transaction costs provided for an asset.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"5,060,000","es":""},"correct":false,"feedback":{"fr":"","en":"This amount adds the costs to fair value, which is the treatment of an asset: for a liability, directly attributable transaction costs are deducted from fair value (IFRS 9, para. 5.1.1). 5,000,000 + 60,000 gives 5,060,000, but the correct calculation is 5,000,000 − 60,000. Rule to remember: For a financial liability, transaction costs are deducted from fair value (IFRS 9, para. 5.1.1).","es":""}},{"id":"B","text":{"fr":"","en":"5,150,000","es":""},"correct":false,"feedback":{"fr":"","en":"The nominal amount to be repaid is not the initial carrying amount: initial measurement starts from fair value, adjusted for directly attributable transaction costs (IFRS 9, para. 5.1.1). Using the nominal amount ignores both the fair value and the issue costs. Rule to remember: Initial measurement starts from fair value, adjusted for transaction costs (IFRS 9, para. 5.1.1).","es":""}},{"id":"C","text":{"fr":"","en":"4,940,000","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"5,000,000","es":""},"correct":false,"feedback":{"fr":"","en":"Fair value alone forgets the adjustment for transaction costs: for a liability not measured at FVTPL, these directly attributable costs are deducted from fair value (IFRS 9, para. 5.1.1). Leaving the costs out of the initial amount distorts the subsequent amortised cost. Rule to remember: A liability not measured at FVTPL is recognised at fair value less transaction costs (IFRS 9, para. 5.1.1).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000024","standard_id":"IFRS9","concept_ids":["IFRS9.MEASUREMENT.TRADE_RECEIVABLES_INITIAL"],"dimension":"APPLICATION","context":"V1_QST.IFRS9.000024","tested_point":"QST.IFRS9.000024","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000002","section_id":"rule-trade-receivable"},"references":["IFRS 9 §5.1.3"],"exercise":{"prompt":{"fr":"","en":"Sigma SA delivers goods to a customer with payment in 30 days. The trade receivable has no significant financing component. The transaction price under IFRS 15 is 36,000; the fair value of the receivable, estimated by discounting that amount, would be 35,400. At what amount does Sigma initially measure the receivable?","es":""},"explanation":{"fr":"","en":"Despite the general fair value rule, trade receivables without a significant financing component under IFRS 15 are initially measured at their transaction price (IFRS 9, para. 5.1.3). Here: 36,000; the fair value of 35,400 is a datum that plays no part in initial measurement. Trap: Applying the general fair value rule. Rule to remember: A trade receivable without a significant financing component is measured at its transaction price (IFRS 9, para. 5.1.3).","es":""},"common_error":{"fr":"","en":"Measuring a trade receivable at discounted fair value although it falls under the transaction price.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"At the fair value of the receivable, i.e. 35,400.","es":""},"correct":false,"feedback":{"fr":"","en":"For a trade receivable without a significant financing component, paragraph 5.1.3 prevails over the general fair value rule: initial measurement is at the transaction price (IFRS 9, para. 5.1.3). Using 35,400 wrongly applies the general rule. Rule to remember: A trade receivable without a significant financing component is measured at the transaction price (IFRS 9, para. 5.1.3).","es":""}},{"id":"B","text":{"fr":"","en":"At the fair value of 35,400, plus directly attributable transaction costs.","es":""},"correct":false,"feedback":{"fr":"","en":"The general rule (fair value adjusted for transaction costs) does not apply to the receivables covered by paragraph 5.1.3, which are measured at their transaction price (IFRS 9, para. 5.1.3). Adding costs to 35,400 combines a rule that is set aside with an amount that is not the right one. Rule to remember: Receivables covered by para. 5.1.3 are outside the general rule of adjusted fair value (IFRS 9, para. 5.1.3).","es":""}},{"id":"C","text":{"fr":"","en":"At the transaction price less the lifetime expected credit loss.","es":""},"correct":false,"feedback":{"fr":"","en":"The initial measurement of the receivable and the loss allowance for credit losses are two distinct items: the receivable is first measured at its transaction price (IFRS 9, para. 5.1.3), impairment being covered by other requirements. Deducting the expected loss from the initial amount mixes the two. Rule to remember: A receivable covered is measured at the transaction price, without deducting the expected credit loss (IFRS 9, para. 5.1.3).","es":""}},{"id":"D","text":{"fr":"","en":"At the transaction price under IFRS 15, i.e. 36,000.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000026","standard_id":"IFRS9","concept_ids":["IFRS9.MEASUREMENT.AMORTISED_COST_SCHEDULE"],"dimension":"CALCULATION","context":"V1_VG.IFRS9.000003","tested_point":"VG.IFRS9.000003","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000009","section_id":"how"},"references":["IFRS 9 §5.4.1","IFRS 9"],"exercise":{"prompt":{"fr":"","en":"Nord SA granted a loan of {loan_amount} on 1 January, measured at amortised cost; its initial fair value equals the amount lent. The annual effective interest rate given by the case is {effective_rate}. The annual coupon of {coupon} is received on 31 December. The two-year loan is repaid on 31 December of the second year for {redemption}, in addition to the last coupon. Calculate the interest income for the first year and the carrying amount at 31 December.","es":""},"explanation":{"fr":"","en":"Approach: Interest: 1,000,000 × 6% = 60,000; closing amount: 1,000,000 + 60,000 − 50,000 = 1,010,000. Interest income is obtained by applying the effective interest rate to the opening carrying amount; the coupon received then reduces the carrying amount (IFRS 9, para. 5.4.1). Trap: Taking the coupon (50,000) as the interest income. Rule to remember: Interest income for the period is the opening carrying amount multiplied by the effective interest rate (IFRS 9, para. 5.4.1).","es":""},"common_error":{"fr":"","en":"Confusing the coupon received with interest income at the effective rate.","es":""},"format":"CALCULATION","placeholders":[{"id":"loan_amount","value":"1000000","unit":"EUR"},{"id":"effective_rate","value":"6","unit":"PERCENT"},{"id":"coupon","value":"50000","unit":"EUR"},{"id":"redemption","value":"1020600","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Loan amount","es":""},"value":"1000000","unit":"EUR"},{"label":{"fr":"","en":"Effective interest rate","es":""},"value":"6","unit":"PERCENT"},{"label":{"fr":"","en":"Annual coupon received","es":""},"value":"50000","unit":"EUR"},{"label":{"fr":"","en":"Amount repaid at maturity (excluding the last coupon)","es":""},"value":"1020600","unit":"EUR"}],"steps":[{"id":"INTEREST_Y1","label":{"fr":"","en":"Interest income for year 1","es":""},"answer":60000,"tolerance":0,"unit":"EUR"},{"id":"CLOSING_Y1","label":{"fr":"","en":"Carrying amount at 31 December","es":""},"answer":1010000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"INTEREST_Y1","meaning":{"fr":"","en":"Interest income for year 1","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Loan amount","es":""},"value":1000000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Effective interest rate","es":""},"value":6,"unit":"PERCENT"}],"result":60000,"unit":"EUR"},{"step":"CLOSING_Y1","meaning":{"fr":"","en":"Carrying amount at 31 December","es":""},"expression":"a + b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Loan amount","es":""},"value":1000000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Interest income for year 1","es":""},"value":60000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Annual coupon received","es":""},"value":50000,"unit":"EUR"}],"result":1010000,"unit":"EUR"}],"rationale":{"fr":"","en":"Interest income for the period is the opening carrying amount multiplied by the effective interest rate (IFRS 9, para. 5.4.1).","es":""},"references":["REF.IFRS9.5.4.1","REF.IFRS9.A.AMORTISED"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000027","standard_id":"IFRS9","concept_ids":["IFRS9.MEASUREMENT.AMORTISED_COST_SCHEDULE"],"dimension":"CALCULATION","context":"V1_VG.IFRS9.000003","tested_point":"VG.IFRS9.000003","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000009","section_id":"how"},"references":["IFRS 9 §5.4.1","IFRS 9"],"exercise":{"prompt":{"fr":"","en":"Boréal SA acquired bonds on 1 January N for {purchase_price}, an amount equal to their fair value, and measures them at amortised cost. The annual effective interest rate given by the case is {effective_rate}; a coupon of {coupon} is received every 31 December. The three-year bonds are redeemed on 31 December N+2 for {redemption}, in addition to the last coupon. Calculate the interest income for year N+1 and the carrying amount at 31 December N+1.","es":""},"explanation":{"fr":"","en":"Approach: Year N: 800,000 × 5% = 40,000; closing amount 800,000 + 40,000 − 30,000 = 810,000. Year N+1: 810,000 × 5% = 40,500; closing amount 810,000 + 40,500 − 30,000 = 820,500. Each year, the effective interest rate applies to the opening carrying amount, which includes the previous year's interest not received (IFRS 9, para. 5.4.1). Trap: Reusing 800,000 as the base for year N+1. Rule to remember: Interest income for each period rests on the opening carrying amount of that period (IFRS 9, para. 5.4.1).","es":""},"common_error":{"fr":"","en":"Applying the effective rate to the acquisition price instead of the opening carrying amount of the year.","es":""},"format":"CALCULATION","placeholders":[{"id":"purchase_price","value":"800000","unit":"EUR"},{"id":"effective_rate","value":"5","unit":"PERCENT"},{"id":"coupon","value":"30000","unit":"EUR"},{"id":"redemption","value":"831525","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Acquisition price","es":""},"value":"800000","unit":"EUR"},{"label":{"fr":"","en":"Effective interest rate","es":""},"value":"5","unit":"PERCENT"},{"label":{"fr":"","en":"Annual coupon received","es":""},"value":"30000","unit":"EUR"},{"label":{"fr":"","en":"Amount repaid at maturity (excluding the last coupon)","es":""},"value":"831525","unit":"EUR"}],"steps":[{"id":"INTEREST_Y2","label":{"fr":"","en":"Interest income for year N+1","es":""},"answer":40500,"tolerance":0,"unit":"EUR"},{"id":"CLOSING_Y2","label":{"fr":"","en":"Carrying amount at 31 December N+1","es":""},"answer":820500,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"INTEREST_Y2","meaning":{"fr":"","en":"Interest income for year N+1","es":""},"expression":"(a + (a * b) - c) * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Acquisition price","es":""},"value":800000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Effective interest rate","es":""},"value":5,"unit":"PERCENT"},{"symbol":"c","meaning":{"fr":"","en":"Annual coupon received","es":""},"value":30000,"unit":"EUR"}],"result":40500,"unit":"EUR"},{"step":"CLOSING_Y2","meaning":{"fr":"","en":"Carrying amount at 31 December N+1","es":""},"expression":"(a + (a * b) - c) + d - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Acquisition price","es":""},"value":800000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Effective interest rate","es":""},"value":5,"unit":"PERCENT"},{"symbol":"c","meaning":{"fr":"","en":"Annual coupon received","es":""},"value":30000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Interest income for year N+1","es":""},"value":40500,"unit":"EUR"}],"result":820500,"unit":"EUR"}],"rationale":{"fr":"","en":"Interest income for each period rests on the opening carrying amount of that period (IFRS 9, para. 5.4.1).","es":""},"references":["REF.IFRS9.5.4.1","REF.IFRS9.A.AMORTISED"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000029","standard_id":"IFRS9","concept_ids":["IFRS9.MEASUREMENT.MODIFICATION_ASSETS"],"dimension":"CALCULATION","context":"V1_QST.IFRS9.000029","tested_point":"QST.IFRS9.000029","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000010","section_id":"rule-modification"},"references":["IFRS 9 §5.4.3"],"exercise":{"prompt":{"fr":"","en":"Pavé SA holds a loan whose gross carrying amount is {previous_gross}. The contractual cash flows are renegotiated without the loan being derecognised. The gross carrying amount recalculated to reflect the modified cash flows is {recalculated_gross} (case datum). Calculate the modification loss to be recognised in profit or loss (give it as a positive amount).","es":""},"explanation":{"fr":"","en":"Approach: 1,000,000 − 920,000 = 80,000: when the contractual cash flows of an asset are renegotiated or modified without derecognition, the entity recalculates the gross carrying amount and recognises a modification gain or loss in profit or loss (IFRS 9, para. 5.4.3); as the recalculated amount is lower than the former one, it is a loss. Case convention: the recalculated amount is given by the case. Trap: Treating the modification as a derecognition and recognising a new asset, which would presuppose a modification leading to derecognition. Rule to remember: A modification without derecognition leads to a recalculation of the gross amount and a modification gain or loss in profit or loss (IFRS 9, para. 5.4.3).","es":""},"common_error":{"fr":"","en":"Derecognising the loan although the modification does not lead to its derecognition.","es":""},"format":"CALCULATION","placeholders":[{"id":"previous_gross","value":"1000000","unit":"EUR"},{"id":"recalculated_gross","value":"920000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Gross carrying amount before modification","es":""},"value":"1000000","unit":"EUR"},{"label":{"fr":"","en":"Recalculated gross carrying amount","es":""},"value":"920000","unit":"EUR"}],"steps":[{"id":"MODIFICATION_LOSS","label":{"fr":"","en":"Modification loss","es":""},"answer":80000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"MODIFICATION_LOSS","meaning":{"fr":"","en":"Modification loss","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Gross carrying amount before modification","es":""},"value":1000000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Recalculated gross carrying amount","es":""},"value":920000,"unit":"EUR"}],"result":80000,"unit":"EUR","rationale":{"fr":"","en":"Approach: 1,000,000 − 920,000 = 80,000: when the contractual cash flows of an asset are renegotiated or modified without derecognition, the entity recalculates the gross carrying amount and recognises a modification gain or loss in profit or loss (IFRS 9, para. 5.4.3)","es":""}}],"rationale":{"fr":"","en":"A modification without derecognition leads to a recalculation of the gross amount and a modification gain or loss in profit or loss (IFRS 9, para. 5.4.3).","es":""},"references":["REF.IFRS9.5.4.3"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000030","standard_id":"IFRS9","concept_ids":["IFRS9.IMPAIRMENT.GENERAL_APPROACH"],"dimension":"APPLICATION","context":"V1_QST.IFRS9.000030","tested_point":"QST.IFRS9.000030","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000012","section_id":"understand"},"references":["IFRS 9 §5.5.3","IFRS 9 §5.5.5"],"exercise":{"prompt":{"fr":"","en":"Quartz SA holds a loan granted to a customer. At the reporting date, the credit risk has increased significantly since initial recognition, without the loan being credit-impaired. What loss allowance does Quartz recognise?","es":""},"explanation":{"fr":"","en":"At the reporting date, if the credit risk of an instrument has increased significantly since initial recognition, the loss allowance equals the lifetime expected credit losses (IFRS 9, para. 5.5.3); otherwise, it equals the 12-month expected losses (IFRS 9, para. 5.5.5). A loan that is not credit-impaired but whose risk has increased sharply therefore falls under the lifetime measurement. Trap: Staying at 12 months, or waiting for impairment. Rule to remember: After a significant increase in credit risk, the loss allowance equals the lifetime expected losses (IFRS 9, para. 5.5.3).","es":""},"common_error":{"fr":"","en":"Keeping the 12-month measurement as long as the loan is not credit-impaired.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"An allowance equal to the lifetime expected credit losses.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"An allowance equal to the 12-month expected credit losses.","es":""},"correct":false,"feedback":{"fr":"","en":"The 12-month measurement applies as long as credit risk has not increased significantly since initial recognition (IFRS 9, para. 5.5.5); here it has increased, so the allowance is measured over the lifetime (IFRS 9, para. 5.5.3). Staying at 12 months understates the allowance. Rule to remember: After a significant increase in credit risk, the allowance equals the lifetime expected losses (IFRS 9, para. 5.5.3).","es":""}},{"id":"C","text":{"fr":"","en":"An allowance based on losses incurred, at the date the loan becomes credit-impaired.","es":""},"correct":false,"feedback":{"fr":"","en":"A significant increase in credit risk is enough to require the lifetime measurement, without waiting for the loan to become credit-impaired (IFRS 9, para. 5.5.3). Waiting for the impairment event would mean recognising the allowance too late. Rule to remember: The lifetime measurement applies as soon as credit risk has increased significantly (IFRS 9, para. 5.5.3).","es":""}},{"id":"D","text":{"fr":"","en":"The lifetime expected losses, provided the debtor's internal rating has fallen.","es":""},"correct":false,"feedback":{"fr":"","en":"A change in the internal rating is not decisive in itself: it is the significant increase in credit risk since initial recognition that drives the lifetime measurement (IFRS 9, para. 5.5.3). Making the measurement depend on a fall in the internal rating adds a condition the rule does not set. Rule to remember: The lifetime measurement depends on the significant increase in credit risk, not on the internal rating in itself (IFRS 9, para. 5.5.3).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000031","standard_id":"IFRS9","concept_ids":["IFRS9.IMPAIRMENT.GENERAL_APPROACH"],"dimension":"CALCULATION","context":"V1_QST.IFRS9.000031","tested_point":"QST.IFRS9.000031","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000012","section_id":"understand"},"references":["IFRS 9 §5.5.3","IFRS 9"],"exercise":{"prompt":{"fr":"","en":"Zircon SA holds a loan whose credit risk has increased significantly since initial recognition; its loss allowance is therefore equal to the lifetime expected credit losses. Case convention: expected loss = exposure × probability of default × loss given default, without discounting. Exposure at default: {exposure}; lifetime probability of default: {lifetime_pd}; loss given default: {lgd}. Calculate the lifetime expected credit loss.","es":""},"explanation":{"fr":"","en":"Approach: 1,000,000 × 8% = 80,000; 80,000 × 45% = 36,000. After a significant increase in credit risk, the loss allowance equals the lifetime expected credit losses (IFRS 9, para. 5.5.3). Case convention: the product of exposure × probability of default × loss given default is a calculation convention of the case, not a formula imposed by the standard. Trap: Using a 12-month probability of default instead of the lifetime one. Rule to remember: The loss allowance of an instrument whose risk has increased significantly covers the lifetime (IFRS 9, para. 5.5.3).","es":""},"common_error":{"fr":"","en":"Using the 12-month probability of default although the risk has increased significantly.","es":""},"format":"CALCULATION","placeholders":[{"id":"exposure","value":"1000000","unit":"EUR"},{"id":"lifetime_pd","value":"8","unit":"PERCENT"},{"id":"lgd","value":"45","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Exposure at default","es":""},"value":"1000000","unit":"EUR"},{"label":{"fr":"","en":"Lifetime probability of default","es":""},"value":"8","unit":"PERCENT"},{"label":{"fr":"","en":"Loss given default","es":""},"value":"45","unit":"PERCENT"}],"steps":[{"id":"LIFETIME_ECL","label":{"fr":"","en":"Lifetime expected loss","es":""},"answer":36000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"LIFETIME_ECL","meaning":{"fr":"","en":"Lifetime expected loss","es":""},"expression":"(a * b) * c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Exposure at default","es":""},"value":1000000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Lifetime probability of default","es":""},"value":8,"unit":"PERCENT"},{"symbol":"c","meaning":{"fr":"","en":"Loss given default","es":""},"value":45,"unit":"PERCENT"}],"result":36000,"unit":"EUR"}],"rationale":{"fr":"","en":"The loss allowance of an instrument whose risk has increased significantly covers the lifetime (IFRS 9, para. 5.5.3).","es":""},"references":["REF.IFRS9.5.5.3","REF.IFRS9.A.CREDIT"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000033","standard_id":"IFRS9","concept_ids":["IFRS9.IMPAIRMENT.SIGNIFICANT_INCREASE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS9.000033","tested_point":"QST.IFRS9.000033","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000012","section_id":"rule-sicr"},"references":["IFRS 9 §5.5.11"],"exercise":{"prompt":{"fr":"","en":"The presumption that credit risk has increased significantly when contractual payments are more than 30 days past due cannot be rebutted.","es":""},"explanation":{"fr":"","en":"Credit risk is presumed to have increased significantly when contractual payments are more than 30 days past due; this presumption serves as a backstop and can be rebutted with reasonable and supportable information showing that 30 days past due does not mark a significant increase (IFRS 9, para. 5.5.11). Trap: Treating the 30 days as an automatic criterion that allows no evidence to the contrary. Rule to remember: A delay of more than 30 days leads to a presumption of a significant increase in credit risk, a rebuttable presumption (IFRS 9, para. 5.5.11).","es":""},"common_error":{"fr":"","en":"Automatically moving to stage 2 at 30 days past due without considering evidence to the contrary.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000034","standard_id":"IFRS9","concept_ids":["IFRS9.IMPAIRMENT.SIGNIFICANT_INCREASE"],"dimension":"ANALYSIS","context":"V1_QST.IFRS9.000034","tested_point":"QST.IFRS9.000034","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000012","section_id":"rule-sicr"},"references":["IFRS 9 §5.5.9"],"exercise":{"prompt":{"fr":"","en":"A working file describes the assessment of a significant increase in credit risk. Which of these statements is wrong?","es":""},"explanation":{"fr":"","en":"At each reporting date, the entity assesses whether credit risk has increased significantly since initial recognition by comparing the risk of default at the reporting date with that at initial recognition (and not the change in the amount of expected loss), on the basis of reasonable and supportable information available without undue cost or effort; the assessment is relative (IFRS 9, para. 5.5.9). Trap: Measuring the increase by the change in the amount of expected loss. Rule to remember: The significant increase is assessed on the risk of default, not on the amount of expected loss (IFRS 9, para. 5.5.9).","es":""},"common_error":{"fr":"","en":"Comparing amounts of expected loss instead of comparing risks of default.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The entity compares the risk of default at the reporting date with that at initial recognition.","es":""},"correct":false,"feedback":{"fr":"","en":"This statement is accurate: the entity assesses the significant increase by comparing the risk of default at the reporting date with that at initial recognition (IFRS 9, para. 5.5.9). The error sought concerns the quantity compared. Rule to remember: The comparison relates to the risk of default at the two dates (IFRS 9, para. 5.5.9).","es":""}},{"id":"B","text":{"fr":"","en":"The significant increase is measured by the increase in the amount of expected loss between the two dates.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The assessment relies on reasonable and supportable information available without undue cost or effort.","es":""},"correct":false,"feedback":{"fr":"","en":"This statement is accurate: the assessment rests on reasonable and supportable information available without undue cost or effort (IFRS 9, para. 5.5.9). It does not contain the error sought, which concerns the quantity compared. Rule to remember: The assessment relies on reasonable and supportable information (IFRS 9, para. 5.5.9).","es":""}},{"id":"D","text":{"fr":"","en":"The assessment is relative: the same change in the risk of default may be significant for one instrument and not for another.","es":""},"correct":false,"feedback":{"fr":"","en":"This statement is accurate: the assessment of the significant increase is relative (IFRS 9, para. 5.5.9). This relative nature explains why no single amount holds for every instrument. The error is in the other statement, the one on how the increase is measured. Rule to remember: The assessment of the significant increase is relative (IFRS 9, para. 5.5.9).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000036","standard_id":"IFRS9","concept_ids":["IFRS9.IMPAIRMENT.CREDIT_IMPAIRED"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS9.000036","tested_point":"QST.IFRS9.000036","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000014","section_id":"rule-stage3"},"references":["IFRS 9","IFRS 9 §B5.4.7","IFRS 9 §B5.5.37"],"exercise":{"prompt":{"fr":"","en":"Which statements about a credit-impaired financial asset are accurate? More than one answer is possible.","es":""},"explanation":{"fr":"","en":"A financial asset is credit-impaired when one or more events that have a detrimental effect on its estimated future cash flows have occurred (stage 3; IFRS 9, Appendix A); a high credit risk at initial recognition is not enough to make it credit-impaired from origination, and default follows the entity's internal definition, presumed no later than 90 days past due (IFRS 9, paras. B5.4.7 and B5.5.37). Trap: Confusing a significant increase in risk (stage 2) with credit impairment (stage 3). Rule to remember: A credit-impaired asset corresponds to stage 3: adverse events have occurred (IFRS 9, Appendix A).","es":""},"common_error":{"fr":"","en":"Placing in stage 3 an asset whose risk is merely high or has increased significantly.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The standard defines default, which the entity is required to adopt to place an asset in stage 3.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard provides no definition of default: the entity uses its internal definition, subject to a rebuttable presumption of default no later than 90 days past due (IFRS 9, para. B5.5.37). Attributing to the standard a definition of default leads to looking in the text for a criterion that is not there. Rule to remember: IFRS 9 refers to the internal definition of default (IFRS 9, para. B5.5.37).","es":""}},{"id":"B","text":{"fr":"","en":"An asset is credit-impaired when one or more events that have a detrimental effect on its estimated future cash flows have occurred.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"An asset acquired with a high credit risk is not credit-impaired solely because of that high risk.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"An asset becomes credit-impaired as soon as the credit risk has increased significantly.","es":""},"correct":false,"feedback":{"fr":"","en":"A significant increase in credit risk leads to the lifetime measurement (stage 2), whereas a credit-impaired asset presupposes that one or more adverse events on its estimated cash flows have occurred (stage 3; IFRS 9, Appendix A). Confusing the two stages places in stage 3 assets that have not suffered an adverse event. Rule to remember: A credit-impaired asset corresponds to stage 3, not to stage 2 (IFRS 9, Appendix A).","es":""}},{"id":"E","text":{"fr":"","en":"A credit-impaired asset corresponds to stage 3 of the impairment model.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000037","standard_id":"IFRS9","concept_ids":["IFRS9.IMPAIRMENT.CREDIT_IMPAIRED"],"dimension":"CALCULATION","context":"V1_QST.IFRS9.000037","tested_point":"QST.IFRS9.000037","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000014","section_id":"rule-stage3"},"references":["IFRS 9 §5.4.1","IFRS 9"],"exercise":{"prompt":{"fr":"","en":"Alba SA holds a credit-impaired loan (stage 3) whose gross carrying amount is {gross_amount} and whose loss allowance is {loss_allowance}. The annual effective interest rate given by the case is {effective_rate}. Calculate the net amortised cost and the interest income for the period.","es":""},"explanation":{"fr":"","en":"Approach: 500,000 − 150,000 = 350,000; 350,000 × 8% = 28,000. For an asset that has become credit-impaired, the effective interest rate is applied to the amortised cost, that is, net of the loss allowance, and not to the gross carrying amount (IFRS 9, para. 5.4.1). Trap: Applying the rate to the gross amount, which would give 40,000. Rule to remember: Interest income on a credit-impaired asset is calculated on the amortised cost net of the loss allowance (IFRS 9, para. 5.4.1).","es":""},"common_error":{"fr":"","en":"Calculating interest on the gross amount without taking the loss allowance into account.","es":""},"format":"CALCULATION","placeholders":[{"id":"gross_amount","value":"500000","unit":"EUR"},{"id":"loss_allowance","value":"150000","unit":"EUR"},{"id":"effective_rate","value":"8","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Gross carrying amount","es":""},"value":"500000","unit":"EUR"},{"label":{"fr":"","en":"Loss allowance","es":""},"value":"150000","unit":"EUR"},{"label":{"fr":"","en":"Effective interest rate","es":""},"value":"8","unit":"PERCENT"}],"steps":[{"id":"NET_AMORTISED_COST","label":{"fr":"","en":"Net amortised cost","es":""},"answer":350000,"tolerance":0,"unit":"EUR"},{"id":"INTEREST_INCOME","label":{"fr":"","en":"Interest income","es":""},"answer":28000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"NET_AMORTISED_COST","meaning":{"fr":"","en":"Net amortised cost","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Gross carrying amount","es":""},"value":500000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Loss allowance","es":""},"value":150000,"unit":"EUR"}],"result":350000,"unit":"EUR"},{"step":"INTEREST_INCOME","meaning":{"fr":"","en":"Interest income","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Net amortised cost","es":""},"value":350000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Effective interest rate","es":""},"value":8,"unit":"PERCENT"}],"result":28000,"unit":"EUR"}],"rationale":{"fr":"","en":"Interest income on a credit-impaired asset is calculated on the amortised cost net of the loss allowance (IFRS 9, para. 5.4.1).","es":""},"references":["REF.IFRS9.5.4.1","REF.IFRS9.A.CREDIT"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000039","standard_id":"IFRS9","concept_ids":["IFRS9.IMPAIRMENT.SIMPLIFIED_APPROACH"],"dimension":"APPLICATION","context":"V1_QST.IFRS9.000039","tested_point":"QST.IFRS9.000039","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000015","section_id":"rule-simplified"},"references":["IFRS 9 §5.5.15"],"exercise":{"prompt":{"fr":"","en":"Tellur SA sells products to customers with payment in 30 days. Its trade receivables have no significant financing component. Which impairment approach does Tellur apply to these receivables?","es":""},"explanation":{"fr":"","en":"In the simplified approach, the loss allowance is always equal to the lifetime expected losses, without stages, for trade receivables and contract assets without a significant financing component; this paragraph prevails over paragraphs 5.5.3 and 5.5.5 (IFRS 9, para. 5.5.15). Trap: Applying the stages of the general approach, or believing the simplified approach optional for these receivables. Rule to remember: Trade receivables without a significant financing component fall under the simplified approach (IFRS 9, para. 5.5.15).","es":""},"common_error":{"fr":"","en":"Applying the stages of the general approach to trade receivables without a significant financing component.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The general approach: 12-month losses at origination, then lifetime losses after a significant increase in credit risk.","es":""},"correct":false,"feedback":{"fr":"","en":"The general approach proceeds by stages, but for these receivables paragraph 5.5.15 prevails over paragraphs 5.5.3 and 5.5.5 and provides for an allowance always equal to the lifetime expected losses, without stages (IFRS 9, para. 5.5.15). Applying the general approach ignores this rule specific to trade receivables. Rule to remember: For trade receivables without a significant financing component, the allowance is always equal to the lifetime losses (IFRS 9, para. 5.5.15).","es":""}},{"id":"B","text":{"fr":"","en":"The simplified approach, provided the entity has chosen this method as an accounting policy.","es":""},"correct":false,"feedback":{"fr":"","en":"For trade receivables without a significant financing component, the simplified approach applies without any condition of choice; the choice of accounting policy concerns receivables with a significant financing component and lease receivables (IFRS 9, para. 5.5.15). Making the approach depend on a choice confuses the two cases. Rule to remember: The simplified approach is not a choice for trade receivables without a significant financing component (IFRS 9, para. 5.5.15).","es":""}},{"id":"C","text":{"fr":"","en":"The simplified approach: allowance equal to the lifetime expected losses, without stages.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A loss allowance recognised from the due date of the receivables, based on incurred losses.","es":""},"correct":false,"feedback":{"fr":"","en":"The IFRS 9 impairment model rests on expected losses: for these receivables, the allowance equals the lifetime expected losses, without waiting for the due date or for losses to be incurred (IFRS 9, para. 5.5.15). Waiting for the due date means recognising the allowance too late. Rule to remember: The loss allowance on trade receivables covers the lifetime expected losses (IFRS 9, para. 5.5.15).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000040","standard_id":"IFRS9","concept_ids":["IFRS9.IMPAIRMENT.SIMPLIFIED_APPROACH"],"dimension":"CALCULATION","context":"V1_QST.IFRS9.000040","tested_point":"QST.IFRS9.000040","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000015","section_id":"rule-simplified"},"references":["IFRS 9 §5.5.15"],"exercise":{"prompt":{"fr":"","en":"Dorvane SA applies the simplified approach to its trade receivables, without a significant financing component. Pedagogical assumption: the matrix below gives the loss rates, which are case data. Receivables not yet due: {bal_current} at a rate of {rate_current}; 1 to 30 days past due: {bal_up_to_30} at a rate of {rate_up_to_30}; 31 to 60 days past due: {bal_31_to_60} at a rate of {rate_31_to_60}; more than 60 days past due: {bal_over_60} at a rate of {rate_over_60}. Calculate the total loss allowance.","es":""},"explanation":{"fr":"","en":"Approach: 460,000 × 1% = 4,600; 310,000 × 4% = 12,400; 170,000 × 10% = 17,000; 85,000 × 30% = 25,500; total: 59,500. In the simplified approach, the loss allowance is always equal to the lifetime expected losses, without stages (IFRS 9, para. 5.5.15); the matrix of rates by bucket is here a calculation tool supplied by the case. Case convention: the loss rates are case data. Trap: Applying a single rate to the total balance without distinguishing the buckets. Rule to remember: The simplified approach measures the loss allowance over the lifetime, without stages (IFRS 9, para. 5.5.15).","es":""},"common_error":{"fr":"","en":"Applying an average rate to the total balance instead of the rate of each bucket.","es":""},"format":"CALCULATION","placeholders":[{"id":"bal_current","value":"460000","unit":"EUR"},{"id":"rate_current","value":"1","unit":"PERCENT"},{"id":"bal_up_to_30","value":"310000","unit":"EUR"},{"id":"rate_up_to_30","value":"4","unit":"PERCENT"},{"id":"bal_31_to_60","value":"170000","unit":"EUR"},{"id":"rate_31_to_60","value":"10","unit":"PERCENT"},{"id":"bal_over_60","value":"85000","unit":"EUR"},{"id":"rate_over_60","value":"30","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Balance not yet due","es":""},"value":"460000","unit":"EUR"},{"label":{"fr":"","en":"Loss rate, not yet due","es":""},"value":"1","unit":"PERCENT"},{"label":{"fr":"","en":"Balance 1 to 30 days past due","es":""},"value":"310000","unit":"EUR"},{"label":{"fr":"","en":"Loss rate, 1 to 30 days","es":""},"value":"4","unit":"PERCENT"},{"label":{"fr":"","en":"Balance 31 to 60 days past due","es":""},"value":"170000","unit":"EUR"},{"label":{"fr":"","en":"Loss rate, 31 to 60 days","es":""},"value":"10","unit":"PERCENT"},{"label":{"fr":"","en":"Balance more than 60 days past due","es":""},"value":"85000","unit":"EUR"},{"label":{"fr":"","en":"Loss rate, over 60 days","es":""},"value":"30","unit":"PERCENT"}],"steps":[{"id":"TOTAL_ALLOWANCE","label":{"fr":"","en":"Total loss allowance","es":""},"answer":59500,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"TOTAL_ALLOWANCE","meaning":{"fr":"","en":"Total loss allowance","es":""},"expression":"(a * b) + (c * d) + (e * f) + (g * h)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Balance not yet due","es":""},"value":460000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Loss rate, not yet due","es":""},"value":1,"unit":"PERCENT"},{"symbol":"c","meaning":{"fr":"","en":"Balance 1 to 30 days past due","es":""},"value":310000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Loss rate, 1 to 30 days","es":""},"value":4,"unit":"PERCENT"},{"symbol":"e","meaning":{"fr":"","en":"Balance 31 to 60 days past due","es":""},"value":170000,"unit":"EUR"},{"symbol":"f","meaning":{"fr":"","en":"Loss rate, 31 to 60 days","es":""},"value":10,"unit":"PERCENT"},{"symbol":"g","meaning":{"fr":"","en":"Balance more than 60 days past due","es":""},"value":85000,"unit":"EUR"},{"symbol":"h","meaning":{"fr":"","en":"Loss rate, over 60 days","es":""},"value":30,"unit":"PERCENT"}],"result":59500,"unit":"EUR"}],"rationale":{"fr":"","en":"The simplified approach measures the loss allowance over the lifetime, without stages (IFRS 9, para. 5.5.15).","es":""},"references":["REF.IFRS9.5.5.15"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000042","standard_id":"IFRS9","concept_ids":["IFRS9.IMPAIRMENT.MODIFIED_ASSETS"],"dimension":"APPLICATION","context":"V1_QST.IFRS9.000042","tested_point":"QST.IFRS9.000042","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000012","section_id":"rule-modified"},"references":["IFRS 9 §5.5.12","IFRS 9 §5.4.3"],"exercise":{"prompt":{"fr":"","en":"Sol SA granted a loan whose contractual cash flows are renegotiated during its life, without the loan being derecognised. At the reporting date, Sol assesses whether credit risk has increased significantly since initial recognition. Which comparison does it use?","es":""},"explanation":{"fr":"","en":"For a financial asset modified without derecognition, the entity compares the risk of default at the reporting date (modified terms) with the risk of default at initial recognition (original terms) to assess the significant increase in credit risk (IFRS 9, para. 5.5.12). When cash flows are renegotiated without derecognition, the entity recalculates the gross carrying amount and recognises a modification gain or loss (IFRS 9, para. 5.4.3). Professional judgement: assessing whether the increase in the risk of default is significant. Trap: Starting again from a new initial recognition date. Rule to remember: The comparison for an asset modified without derecognition sets today's modified terms against the original terms (IFRS 9, para. 5.5.12).","es":""},"common_error":{"fr":"","en":"Resetting the credit risk reference at the renegotiation date.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The risk of default at the reporting date, under the modified terms, compared with that at initial recognition, under the original terms.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The risk of default at the reporting date compared with that at the modification date, both under the modified terms.","es":""},"correct":false,"feedback":{"fr":"","en":"For an asset modified without derecognition, the reference is the risk of default at initial recognition, under the original terms, not that at the modification date (IFRS 9, para. 5.5.12). Comparing with the modification date would wipe out the deterioration that occurred before the renegotiation. Rule to remember: The comparison for a modified asset goes back to initial recognition (IFRS 9, para. 5.5.12).","es":""}},{"id":"C","text":{"fr":"","en":"The risk of default at the modification date, which becomes the new initial recognition date of a new asset.","es":""},"correct":false,"feedback":{"fr":"","en":"When the modification leads to derecognition, the modified asset is treated as a new financial asset (IFRS 9, para. 5.4.3); without derecognition, this is not the case and the comparison keeps the original initial recognition as its reference (IFRS 9, para. 5.5.12). Here the loan is not derecognised. Rule to remember: An asset modified without derecognition is not a new asset (IFRS 9, para. 5.4.3).","es":""}},{"id":"D","text":{"fr":"","en":"The amount of expected loss at the reporting date compared with the amount of expected loss at initial recognition.","es":""},"correct":false,"feedback":{"fr":"","en":"The comparison relates to the risk of default, not to the change in the amount of expected loss (IFRS 9, para. 5.5.12). An amount can change without the risk of default having increased significantly (for instance if the exposure changes). Rule to remember: The significant increase is assessed on the risk of default, including for a modified asset (IFRS 9, para. 5.5.12).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000043","standard_id":"IFRS9","concept_ids":["IFRS9.IMPAIRMENT.COMMITMENTS_GUARANTEES"],"dimension":"CALCULATION","context":"V1_QST.IFRS9.000043","tested_point":"QST.IFRS9.000043","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000013","section_id":"rule-commitments"},"references":["IFRS 9 §5.5.20"],"exercise":{"prompt":{"fr":"","en":"Theta SA grants a customer a revolving credit facility (credit card type). Theta's ability to demand repayment does not limit its exposure to credit risk to the notice period. According to the case, the period of exposure to credit risk not mitigated by credit risk management actions is {exposure_period}. Expected exposure at default: {exposure}; probability of default over that period: {pd}; loss given default: {lgd}. Case convention: expected loss = exposure × probability of default × loss given default, without discounting. Calculate the expected credit loss of the facility.","es":""},"explanation":{"fr":"","en":"Approach: 400,000 × 5% = 20,000; 20,000 × 60% = 12,000. For certain instruments combining a loan and an undrawn commitment (revolving facilities such as credit cards and overdrafts), where the entity's ability to demand repayment does not limit its exposure to the notice period, the expected loss is measured over the period of exposure to credit risk not mitigated by credit risk management actions, here 18 months; outside this exception, the period is contractual (IFRS 9, para. 5.5.20). Case convention: the probability of default is given for that period. Trap: Using the notice period alone. Rule to remember: For a revolving facility covered, the expected loss spans the period of exposure not mitigated by risk management (IFRS 9, para. 5.5.20).","es":""},"common_error":{"fr":"","en":"Limiting the measurement to the notice period although the exposure to risk extends beyond it.","es":""},"format":"CALCULATION","placeholders":[{"id":"exposure_period","value":"18","unit":"MONTHS"},{"id":"exposure","value":"400000","unit":"EUR"},{"id":"pd","value":"5","unit":"PERCENT"},{"id":"lgd","value":"60","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Unmitigated exposure period","es":""},"value":"18","unit":"MONTHS"},{"label":{"fr":"","en":"Expected exposure at default","es":""},"value":"400000","unit":"EUR"},{"label":{"fr":"","en":"Probability of default over the period","es":""},"value":"5","unit":"PERCENT"},{"label":{"fr":"","en":"Loss given default","es":""},"value":"60","unit":"PERCENT"}],"steps":[{"id":"ECL","label":{"fr":"","en":"Expected credit loss of the facility","es":""},"answer":12000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"ECL","meaning":{"fr":"","en":"Expected credit loss of the facility","es":""},"expression":"(a * b) * c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Expected exposure at default","es":""},"value":400000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Probability of default over the period","es":""},"value":5,"unit":"PERCENT"},{"symbol":"c","meaning":{"fr":"","en":"Loss given default","es":""},"value":60,"unit":"PERCENT"}],"result":12000,"unit":"EUR"}],"rationale":{"fr":"","en":"For a revolving facility covered, the expected loss spans the period of exposure not mitigated by risk management (IFRS 9, para. 5.5.20).","es":""},"references":["REF.IFRS9.5.5.20"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000044","standard_id":"IFRS9","concept_ids":["IFRS9.EMBEDDED.SEPARATION_CRITERIA"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS9.000044","tested_point":"QST.IFRS9.000044","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000016","section_id":"rule-separation"},"references":["IFRS 9 §4.3.3"],"exercise":{"prompt":{"fr":"","en":"A hybrid contract has as its host a contract that is not a financial asset within the scope of IFRS 9. Which conditions must be met for the embedded derivative to be separated and accounted for as a derivative? More than one answer is possible.","es":""},"explanation":{"fr":"","en":"When the host is not a financial asset within the scope of the standard, the embedded derivative is separated and accounted for as a derivative only if three conditions are met: its economic characteristics and risks are not closely related to those of the host; a separate instrument with the same terms would meet the definition of a derivative; the hybrid contract is not measured at FVTPL (IFRS 9, para. 4.3.3). Professional judgement: assessing whether the risks are closely related to those of the host. Trap: Adding conditions foreign to the three criteria. Rule to remember: Separation requires all three conditions to be met (IFRS 9, para. 4.3.3).","es":""},"common_error":{"fr":"","en":"Retaining a condition based on the relative weight of the derivative compared with the host.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The embedded derivative has a fair value higher than that of the host contract.","es":""},"correct":false,"feedback":{"fr":"","en":"Comparing the fair values of the derivative and the host is not one of the separation conditions, which relate to the economic link with the host, the definition of a derivative and the measurement basis of the hybrid contract (IFRS 9, para. 4.3.3). A derivative of low value can therefore be separated. Rule to remember: The separation conditions do not depend on the relative weight of the derivative (IFRS 9, para. 4.3.3).","es":""}},{"id":"B","text":{"fr":"","en":"The economic characteristics and risks of the embedded derivative are not closely related to those of the host.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A separate instrument with the same terms would meet the definition of a derivative.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The entity has designated the embedded derivative as a hedging instrument.","es":""},"correct":false,"feedback":{"fr":"","en":"Designating the derivative as a hedging instrument is not one of the separation conditions, which relate to the link with the host, the definition of a derivative and the measurement of the hybrid contract (IFRS 9, para. 4.3.3). Mixing separation and hedge accounting shifts the question. Rule to remember: The three conditions for separating the embedded derivative are independent of a hedge designation (IFRS 9, para. 4.3.3).","es":""}},{"id":"E","text":{"fr":"","en":"The hybrid contract is not measured at fair value through profit or loss.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000045","standard_id":"IFRS9","concept_ids":["IFRS9.EMBEDDED.SEPARATION_CRITERIA"],"dimension":"APPLICATION","context":"V1_QST.IFRS9.000045","tested_point":"QST.IFRS9.000045","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000016","section_id":"rule-separation"},"references":["IFRS 9 §4.3.3"],"exercise":{"prompt":{"fr":"","en":"Iota SA issues a hybrid instrument whose host is a financial liability. It includes an embedded derivative whose economic characteristics and risks are not closely related to those of the host, and a separate instrument with the same terms would meet the definition of a derivative. Iota measures the whole hybrid contract at fair value through profit or loss. Is the embedded derivative separated from the host?","es":""},"explanation":{"fr":"","en":"When the host is not a financial asset within the scope of the standard, the embedded derivative is separated only if three conditions are met: risks not closely related to those of the host, a separate instrument with the same terms meeting the definition of a derivative, and the hybrid contract not measured at FVTPL (IFRS 9, para. 4.3.3). Here the first two are met, but the hybrid contract is measured at FVTPL: the third fails. Professional judgement: assessing the economic link with the host. Trap: Concluding that the derivative is separated as soon as the risks are not closely related. Rule to remember: Without all three conditions met, the embedded derivative is not separated (IFRS 9, para. 4.3.3).","es":""},"common_error":{"fr":"","en":"Separating the derivative after checking only the link with the host.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Yes: the risks of the derivative are not closely related to those of the host, which is enough to separate it.","es":""},"correct":false,"feedback":{"fr":"","en":"All three separation conditions must be met: the lack of close relationship with the host and the definition of a derivative are satisfied, but not the third, since the hybrid contract is measured at FVTPL (IFRS 9, para. 4.3.3). Relying on the first condition alone leads to separating wrongly. Rule to remember: Separation requires that the hybrid contract is not measured at FVTPL (IFRS 9, para. 4.3.3).","es":""}},{"id":"B","text":{"fr":"","en":"Yes: the host is a financial liability, so the embedded derivative is to be separated.","es":""},"correct":false,"feedback":{"fr":"","en":"The nature of the host does not decide on its own: for a host that is not a financial asset within the scope, separation requires three conditions to be met, including that the hybrid contract is not measured at FVTPL (IFRS 9, para. 4.3.3). Here that condition fails. Rule to remember: A liability host is not enough to separate the embedded derivative (IFRS 9, para. 4.3.3).","es":""}},{"id":"C","text":{"fr":"","en":"No: a derivative embedded in a financial liability stays within the host contract.","es":""},"correct":false,"feedback":{"fr":"","en":"A derivative embedded in a financial liability can be separated when the three conditions are met (IFRS 9, para. 4.3.3); here it stays within the host because the third condition fails, not because the host is a liability. Generalising to every liability gives a rule the standard does not set. Rule to remember: The derivative stays within the host here because of the measurement of the hybrid contract at FVTPL (IFRS 9, para. 4.3.3).","es":""}},{"id":"D","text":{"fr":"","en":"No: the third condition is not met, because the hybrid contract is measured at fair value through profit or loss.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000046","standard_id":"IFRS9","concept_ids":["IFRS9.INTERACTIONS.IFRS13"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS9.000046","tested_point":"QST.IFRS9.000046","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000002","section_id":"rule-ifrs13"},"references":["IFRS 9 §5.1.1"],"exercise":{"prompt":{"fr":"","en":"A student reviews the initial measurement of a financial asset not measured at FVTPL. Which sentence correctly describes what IFRS 9 provides and its reference to IFRS 13?","es":""},"explanation":{"fr":"","en":"For a financial asset or liability not measured at FVTPL, initial measurement is at fair value, adjusted for the transaction costs directly attributable to the acquisition or issue (IFRS 9, para. 5.1.1). IFRS 9 sets this principle; the determination of fair value falls under IFRS 13, a mere cross-reference in this question. Trap: Attributing to IFRS 9 the techniques for determining fair value. Rule to remember: IFRS 9 sets the basis of initial measurement, IFRS 13 deals with the determination of fair value (IFRS 9, para. 5.1.1).","es":""},"common_error":{"fr":"","en":"Looking in IFRS 9 for the techniques for determining fair value.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"IFRS 9 requires initial measurement at historical cost, then refers to IFRS 13 to measure fair value at the reporting date.","es":""},"correct":false,"feedback":{"fr":"","en":"The initial measurement of a financial asset not measured at FVTPL starts from fair value, adjusted for directly attributable transaction costs, not from historical cost (IFRS 9, para. 5.1.1). Bringing fair value in only at the reporting date reverses the logic of initial measurement. Rule to remember: Initial measurement starts from fair value, adjusted for transaction costs (IFRS 9, para. 5.1.1).","es":""}},{"id":"B","text":{"fr":"","en":"IFRS 9 sets initial measurement at fair value adjusted for transaction costs; how that fair value is determined falls under IFRS 13 (cross-reference).","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"IFRS 9 sets initial measurement at fair value and itself determines the valuation techniques, without referring to another standard.","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 9 sets the principle of initial measurement at fair value adjusted for transaction costs (IFRS 9, para. 5.1.1); the determination of fair value itself is a cross-reference to IFRS 13, which this paragraph does not develop. Attributing the valuation techniques to IFRS 9 confuses the two standards. Rule to remember: IFRS 9 sets the principle, IFRS 13 deals with determining fair value (IFRS 9, para. 5.1.1).","es":""}},{"id":"D","text":{"fr":"","en":"IFRS 9 sets initial measurement at fair value without adjustment, with transaction costs being expensed.","es":""},"correct":false,"feedback":{"fr":"","en":"For an asset not measured at FVTPL, directly attributable transaction costs are added to fair value: they are part of initial measurement and are not expensed (IFRS 9, para. 5.1.1). Expensing them is the treatment of an asset measured at FVTPL. Rule to remember: For an asset not measured at FVTPL, transaction costs adjust the initial fair value (IFRS 9, para. 5.1.1).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000047","standard_id":"IFRS9","concept_ids":["IFRS9.INTERACTIONS.IFRS15"],"dimension":"APPLICATION","context":"V1_QST.IFRS9.000047","tested_point":"QST.IFRS9.000047","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000002","section_id":"rule-trade-receivable"},"references":["IFRS 9 §5.1.3","IFRS 9 §5.5.15"],"exercise":{"prompt":{"fr":"","en":"Vega SA has performed services invoiced at 120,000 (transaction price under IFRS 15), with payment in 45 days. The trade receivable has no significant financing component. What are the applicable initial measurement of the receivable and impairment approach?","es":""},"explanation":{"fr":"","en":"IFRS 15 provides the transaction price: a trade receivable without a significant financing component is initially measured at that price (IFRS 9, para. 5.1.3). For impairment, the simplified approach applies to these receivables: the loss allowance is always equal to the lifetime expected losses, without stages (IFRS 9, para. 5.5.15). Trap: Mixing the general fair value rule or the stages of the general approach with the rules specific to trade receivables. Rule to remember: Transaction price at origination and the simplified approach afterwards: the pairing for trade receivables without a significant financing component (IFRS 9, para. 5.5.15).","es":""},"common_error":{"fr":"","en":"Applying to a trade receivable the initial fair value or the stages of the general approach.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Initial measurement at the IFRS 15 transaction price; simplified approach, with an allowance equal to the lifetime expected losses.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Initial measurement at fair value plus transaction costs; general approach in three stages.","es":""},"correct":false,"feedback":{"fr":"","en":"Both parts are inaccurate for a trade receivable without a significant financing component: it is measured at the transaction price under IFRS 15 (IFRS 9, para. 5.1.3) and falls under the simplified approach, without stages (IFRS 9, para. 5.5.15). Applying the general rule to both parts ignores the rules specific to these receivables. Rule to remember: A trade receivable covered follows the transaction price at origination and the simplified approach afterwards (IFRS 9, para. 5.5.15).","es":""}},{"id":"C","text":{"fr":"","en":"Initial measurement at the IFRS 15 transaction price; general approach, with a 12-month measurement at origination.","es":""},"correct":false,"feedback":{"fr":"","en":"The initial measurement is accurate (IFRS 9, para. 5.1.3), but impairment does not follow the general approach: for these receivables, paragraph 5.5.15 provides for an allowance always equal to the lifetime expected losses, with no 12-month measurement (IFRS 9, para. 5.5.15). Rule to remember: For these receivables, the allowance is measured over the lifetime from origination (IFRS 9, para. 5.5.15).","es":""}},{"id":"D","text":{"fr":"","en":"Initial measurement at fair value; simplified approach, with an allowance equal to the 12-month expected losses.","es":""},"correct":false,"feedback":{"fr":"","en":"The simplified approach is the right one, but it measures the allowance over the lifetime, not at 12 months (IFRS 9, para. 5.5.15); initial measurement is at the transaction price, not at fair value (IFRS 9, para. 5.1.3). This choice combines two deviations. Rule to remember: The simplified approach uses lifetime losses, and the receivable covered starts at the transaction price (IFRS 9, para. 5.1.3).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000048","standard_id":"IFRS9","concept_ids":["IFRS9.INTERACTIONS.IFRS16"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS9.000048","tested_point":"QST.IFRS9.000048","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000015","section_id":"rule-ifrs16"},"references":["IFRS 9 §5.5.15"],"exercise":{"prompt":{"fr":"","en":"Mistral SA, a lessor, holds lease receivables under IFRS 16. Which statement about the impairment of these receivables is consistent with IFRS 9?","es":""},"explanation":{"fr":"","en":"For trade receivables and contract assets with a significant financing component, and for lease receivables (IFRS 16), the entity chooses the simplified approach as an accounting policy, with a single policy for each type of asset; this paragraph prevails over paragraphs 5.5.3 and 5.5.5 (IFRS 9, para. 5.5.15). Trap: Setting lease receivables aside from IFRS 9 impairment, or choosing the approach case by case. Rule to remember: Lease receivables fall under a choice of accounting policy, with a single policy for each type of asset (IFRS 9, para. 5.5.15).","es":""},"common_error":{"fr":"","en":"Treating lease receivables as an ordinary loan subject to the stages of the general approach.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It applies the general approach in three stages, as for a loan, because lease receivables are not eligible for the simplified approach.","es":""},"correct":false,"feedback":{"fr":"","en":"Lease receivables are among the assets for which the entity may choose the simplified approach as an accounting policy (IFRS 9, para. 5.5.15). Stating that they are not eligible contradicts this paragraph. Rule to remember: The simplified approach is open to lease receivables by choice of accounting policy (IFRS 9, para. 5.5.15).","es":""}},{"id":"B","text":{"fr":"","en":"They are excluded from the impairment requirements of IFRS 9, because the lease contract falls under IFRS 16.","es":""},"correct":false,"feedback":{"fr":"","en":"Lease receivables are expressly covered by paragraph 5.5.15, which provides a choice of impairment approach for them; they are therefore not set aside from the impairment requirements of IFRS 9 (IFRS 9, para. 5.5.15). Deducing an exclusion from the contract falling under IFRS 16 confuses the lease contract with the lessor's receivable. Rule to remember: Lease receivables fall under the impairment requirements of IFRS 9 (IFRS 9, para. 5.5.15).","es":""}},{"id":"C","text":{"fr":"","en":"It chooses the simplified approach as an accounting policy, with a single policy for each type of asset.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"It chooses the simplified or the general approach receivable by receivable, according to the risk of each customer.","es":""},"correct":false,"feedback":{"fr":"","en":"The choice is an accounting policy, with a single policy for each type of asset, and not a receivable-by-receivable decision based on the customer's risk (IFRS 9, para. 5.5.15). Changing approach from one receivable to another would break that consistency. Rule to remember: The choice of the simplified approach for lease receivables is a single policy for each type of asset (IFRS 9, para. 5.5.15).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000049","standard_id":"IFRS9","concept_ids":["IFRS9.SCOPE.LOAN_COMMITMENTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS9.000049","tested_point":"QST.IFRS9.000049","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000001","section_id":"rule-commitments"},"references":["IFRS 9 §2.3","IFRS 9 §2.1"],"exercise":{"prompt":{"fr":"","en":"Delta SA has granted several loan commitments. Which one remains within the scope of IFRS 9 despite the general exclusion of loan commitments?","es":""},"explanation":{"fr":"","en":"Loan commitments are generally excluded from the scope, but some remain in it: those designated at FVTPL, those that can be settled net in cash or by delivering or issuing another financial instrument, and those granted at a below-market rate (IFRS 9, para. 2.3). The issuer of a commitment that stays outside the scope nevertheless applies the impairment requirements to it (IFRS 9, para. 2.1). Trap: Thinking that delivering the loan is enough to bring the commitment into scope. Rule to remember: A loan commitment that can be settled net in cash remains within the scope of IFRS 9 (IFRS 9, para. 2.3).","es":""},"common_error":{"fr":"","en":"Excluding from the scope a net-settleable commitment because it is a loan commitment.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A loan commitment granted to a long-standing customer, with no commitment fee.","es":""},"correct":false,"feedback":{"fr":"","en":"The length of the relationship and the absence of a fee are not among the criteria that keep a loan commitment in scope. A commitment stays in scope if it is designated at FVTPL, net-settleable or granted at a below-market rate (IFRS 9). Rule to remember: The features of the commercial relationship do not keep a loan commitment in scope (IFRS 9).","es":""}},{"id":"B","text":{"fr":"","en":"A loan commitment at a market rate, whose drawdown is at the borrower's initiative.","es":""},"correct":false,"feedback":{"fr":"","en":"The fact that the drawdown depends on the borrower is not one of the criteria that keep a commitment in scope. Those criteria are designation at FVTPL, the possibility of net settlement in cash or by another financial instrument, and a below-market rate (IFRS 9). Rule to remember: Who initiates the drawdown does not decide the scope of a loan commitment (IFRS 9).","es":""}},{"id":"C","text":{"fr":"","en":"A loan commitment that the entity can settle net in cash.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A loan commitment at a market rate, settled by delivering the agreed loan.","es":""},"correct":false,"feedback":{"fr":"","en":"A commitment settled by delivering the loan, at a market rate, is neither designated at FVTPL, nor net-settleable, nor below market: it remains outside the scope (IFRS 9). The commitments that stay in scope are those designated at FVTPL, those that can be settled net in cash or by another financial instrument, and those below market (IFRS 9). Rule to remember: Delivering the agreed loan does not bring a market-rate commitment back into scope (IFRS 9).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000050","standard_id":"IFRS9","concept_ids":["IFRS9.SCOPE.LOAN_COMMITMENTS"],"dimension":"ANALYSIS","context":"V1_QST.IFRS9.000050","tested_point":"QST.IFRS9.000050","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000001","section_id":"rule-commitments"},"references":["IFRS 9 §2.3","IFRS 9 §2.1"],"exercise":{"prompt":{"fr":"","en":"A colleague presents four statements about loan commitments under IFRS 9. Which one is wrong?","es":""},"explanation":{"fr":"","en":"The issuer of a loan commitment left outside the scope nevertheless applies the impairment requirements to it (IFRS 9, para. 2.1). The other three statements describe commitments that remain in scope: below-market rate, designation at FVTPL, possible net settlement (IFRS 9, para. 2.3). Trap: Inferring from the exclusion from the scope that the issuer is no longer subject to an impairment requirement. Rule to remember: A loan commitment excluded from the scope remains subject to the impairment requirements for the issuer (IFRS 9, para. 2.1).","es":""},"common_error":{"fr":"","en":"Concluding that an engagement excluded from the scope has no further consequence for the issuer.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A loan commitment left outside the scope also escapes the impairment requirements for the issuer.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"A loan commitment designated at fair value through profit or loss remains within the scope of IFRS 9, even though it would be excluded without that designation.","es":""},"correct":false,"feedback":{"fr":"","en":"This statement is correct: designation at FVTPL keeps the commitment in scope (IFRS 9). The error lies elsewhere, in the consequence drawn from the exclusion for the issuer's impairment requirements (IFRS 9, para. 2.1). Rule to remember: Designation at FVTPL brings a loan commitment into scope (IFRS 9).","es":""}},{"id":"C","text":{"fr":"","en":"A loan commitment that can be settled net in cash remains within the scope of IFRS 9, even without designation at FVTPL.","es":""},"correct":false,"feedback":{"fr":"","en":"This statement is correct: the possibility of net settlement in cash is enough to keep the commitment in scope (IFRS 9). The statement about the impairment requirements is the inaccurate one (IFRS 9, para. 2.1). Rule to remember: A net-settleable commitment remains in scope without prior designation (IFRS 9).","es":""}},{"id":"D","text":{"fr":"","en":"A loan commitment granted at a rate below the market rate remains within the scope of IFRS 9.","es":""},"correct":false,"feedback":{"fr":"","en":"This statement is correct: a commitment at a below-market rate remains in scope (IFRS 9). The wrong statement is the one that sets aside the impairment requirements for the issuer of a commitment left outside the scope (IFRS 9, para. 2.1). Rule to remember: Commitments below market, designated at FVTPL or net-settleable remain in scope (IFRS 9).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000051","standard_id":"IFRS9","concept_ids":["IFRS9.SCOPE.OWN_USE"],"dimension":"APPLICATION","context":"V1_QST.IFRS9.000051","tested_point":"QST.IFRS9.000051","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000001","section_id":"rule-own-use"},"references":["IFRS 9 §2.4","IFRS 9 §2.6"],"exercise":{"prompt":{"fr":"","en":"Sigma SA, a cable manufacturer, enters into a contract to buy copper for its production needs, with physical delivery. The contract could be settled net in cash, and Sigma has in the past settled similar contracts net on several occasions. Which conclusion should be drawn?","es":""},"explanation":{"fr":"","en":"Contracts to buy a non-financial item stay outside the scope when they are entered into and held for the entity's expected purchase, sale or usage requirements; a net-settleable contract falls under the standard unless that exception applies, and a past practice of net settlement of similar contracts stands in its way (IFRS 9, paras. 2.4 and 2.6). Trap: Keeping the usage purpose and forgetting the past practice. Rule to remember: A past practice of net settlement of similar contracts stands in the way of the own-use exception (IFRS 9, paras. 2.4 and 2.6).","es":""},"common_error":{"fr":"","en":"Concluding that the own-use exception applies on the strength of the usage purpose alone, ignoring the net-settlement practice.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The contract stays outside the scope, because copper is a non-financial item delivered physically.","es":""},"correct":false,"feedback":{"fr":"","en":"The non-financial nature of the item does not settle the question: a contract on a non-financial item that can be settled net in cash falls under the standard, unless the own-use exception applies (IFRS 9). Here the past practice of net settlement stands in the way of that exception. Rule to remember: A non-financial item does not by itself exclude a net-settleable contract (IFRS 9).","es":""}},{"id":"B","text":{"fr":"","en":"The contract stays outside the scope, because it is entered into for the entity's expected production needs.","es":""},"correct":false,"feedback":{"fr":"","en":"The expected-use purpose is not enough here: a net-settleable contract falls under the standard unless the own-use exception applies, and a past practice of net settlement of similar contracts stands in the way of that exception (IFRS 9). Ignoring this fact of the case amounts to reading the exception without its condition. Rule to remember: A practice of net settlement of similar contracts rules out the own-use exception (IFRS 9).","es":""}},{"id":"C","text":{"fr":"","en":"The contract falls under IFRS 9 after Sigma designates it at fair value through profit or loss; without that designation, it stays outside the scope.","es":""},"correct":false,"feedback":{"fr":"","en":"Designating a contract on a non-financial item at FVTPL is a separate option, intended to reduce an accounting mismatch (IFRS 9). It does not condition the entry into scope of a net-settleable contract that fails the own-use exception. Rule to remember: The entry into scope of such a contract does not depend on a designation (IFRS 9).","es":""}},{"id":"D","text":{"fr":"","en":"The contract falls under IFRS 9: the past practice of net settlement stands in the way of the own-use exception.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000052","standard_id":"IFRS9","concept_ids":["IFRS9.DEFINITIONS.HELD_FOR_TRADING"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS9.000052","tested_point":"QST.IFRS9.000052","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000001","section_id":"rule-hft"},"references":["IFRS 9"],"exercise":{"prompt":{"fr":"","en":"A derivative is classified among the instruments held for trading, unless it is a financial guarantee or a designated and effective hedging instrument.","es":""},"explanation":{"fr":"","en":"An instrument held for trading is acquired or incurred principally to be sold or repurchased in the near term, or is part of a portfolio managed together with a recent pattern of short-term profit-taking; a derivative also qualifies, except a financial guarantee or a designated and effective hedging instrument (IFRS 9, Appendix A, A.HFT). Trap: Reserving the notion for traded securities and leaving derivatives out. Rule to remember: A derivative is held for trading except a financial guarantee or a designated and effective hedge (IFRS 9, Appendix A).","es":""},"common_error":{"fr":"","en":"Reserving the notion of held for trading for securities resold quickly.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000053","standard_id":"IFRS9","concept_ids":["IFRS9.DEFINITIONS.HELD_FOR_TRADING"],"dimension":"APPLICATION","context":"V1_QST.IFRS9.000053","tested_point":"QST.IFRS9.000053","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000001","section_id":"rule-hft"},"references":["IFRS 9"],"exercise":{"prompt":{"fr":"","en":"Tau SA manages a portfolio of bonds that it buys and resells within the year to generate short-term profits. The managers are monitored on that pattern, which has repeated in recent months. How should this portfolio be characterised against the definition of held for trading?","es":""},"explanation":{"fr":"","en":"An instrument is held for trading if it is part of a portfolio of instruments managed together with a recent pattern of short-term profit-taking (IFRS 9, Appendix A, A.HFT). Here the bonds are acquired to be resold within the year and the managers are monitored on that pattern, repeated in recent months. Trap: Limiting the notion to derivatives or to a designation by management. Rule to remember: A portfolio managed together with a recent pattern of short-term profit-taking is held for trading (IFRS 9, Appendix A).","es":""},"common_error":{"fr":"","en":"Reserving held for trading for derivatives.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Not held for trading, because the securities are bonds and not derivatives.","es":""},"correct":false,"feedback":{"fr":"","en":"The definition is not limited to derivatives: it also covers instruments acquired to be resold in the near term and portfolios managed together with a recent pattern of short-term profit-taking (IFRS 9, Appendix A). The type of security is therefore not the decisive criterion here. Rule to remember: Bonds can be held for trading (IFRS 9, Appendix A).","es":""}},{"id":"B","text":{"fr":"","en":"Held for trading: a portfolio managed together, with a recent pattern of short-term profit-taking.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Not held for trading, because the intention stated at purchase prevails over the actual pattern of disposals.","es":""},"correct":false,"feedback":{"fr":"","en":"The portfolio criterion rests on the recent pattern of short-term profit-taking, that is on the management actually observed, and not on the intention announced at purchase (IFRS 9, Appendix A). The facts of the case describe precisely that pattern. Rule to remember: The recent pattern of short-term disposals informs the characterisation of the portfolio (IFRS 9, Appendix A).","es":""}},{"id":"D","text":{"fr":"","en":"Held for trading after management designates the portfolio at fair value through profit or loss.","es":""},"correct":false,"feedback":{"fr":"","en":"Being held for trading follows from the characteristics of the instrument or portfolio and how they are managed (IFRS 9, Appendix A); it is not the result of a designation at FVTPL, which is a separate option. Confusing the two notions reverses the logic of the analysis. Rule to remember: Being held for trading is observed, it is not designated (IFRS 9, Appendix A).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000054","standard_id":"IFRS9","concept_ids":["IFRS9.DERECOGNITION.RIGHTS_EXPIRY_OR_TRANSFER"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS9.000054","tested_point":"QST.IFRS9.000054","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000003","section_id":"rule-tree"},"references":["IFRS 9 §3.2.3","IFRS 9 §3.2.4"],"exercise":{"prompt":{"fr":"","en":"To derecognise a financial asset, the first question is whether the contractual rights to its cash flows have expired.","es":""},"explanation":{"fr":"","en":"The derecognition analysis of a financial asset first asks whether the contractual rights to the cash flows have expired (repayment, expiry of an option); if not, a transfer that meets the derecognition conditions is examined (IFRS 9, para. 3.2.3). Trap: Starting with risks and rewards or with control. Rule to remember: The first derecognition question for an asset is whether the contractual rights have expired (IFRS 9, para. 3.2.3).","es":""},"common_error":{"fr":"","en":"Opening the analysis with risks and rewards when the rights may simply have expired.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000055","standard_id":"IFRS9","concept_ids":["IFRS9.DERECOGNITION.RIGHTS_EXPIRY_OR_TRANSFER"],"dimension":"APPLICATION","context":"V1_QST.IFRS9.000055","tested_point":"QST.IFRS9.000055","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000003","section_id":"rule-tree"},"references":["IFRS 9 §3.2.4","IFRS 9 §3.2.5"],"exercise":{"prompt":{"fr":"","en":"Omega SA holds a receivable that it does not legally assign. It nevertheless undertakes to pass on to a third party the cash flows it collects, under an arrangement that meets the three pass-through conditions. Which analysis should be retained?","es":""},"explanation":{"fr":"","en":"There is a transfer of a financial asset if the entity transfers the contractual rights to its cash flows, or if it keeps them but assumes the obligation to pay them to recipients under an arrangement meeting the pass-through conditions (IFRS 9, para. 3.2.4). Those conditions are cumulative: no obligation to pay without collecting, a prohibition on selling or pledging the original asset, remittance without significant delay (IFRS 9, para. 3.2.5). Trap: Reserving the transfer for a legal assignment of the rights. Rule to remember: Keeping the rights while assuming the obligation to pass them on, under a qualifying arrangement, is a transfer (IFRS 9, para. 3.2.5).","es":""},"common_error":{"fr":"","en":"Reducing the transfer to the legal assignment of the rights.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The contractual rights have expired, so the asset is derecognised without further analysis.","es":""},"correct":false,"feedback":{"fr":"","en":"Omega's rights to the receivable have not expired: the receivable is neither repaid nor extinguished, and Omega keeps collecting the cash flows. Expiry and transfer are two distinct situations; here it is the transfer that is at stake (IFRS 9). Rule to remember: The obligation to pass on the cash flows belongs to the transfer, not to the expiry of the rights (IFRS 9).","es":""}},{"id":"B","text":{"fr":"","en":"There is an immediate transfer with derecognition of the asset, without assessing the risks and rewards.","es":""},"correct":false,"feedback":{"fr":"","en":"The transfer is indeed established, but it does not by itself lead to derecognition: the entity then assesses to what extent it keeps the risks and rewards of ownership (IFRS 9, para. 3.2.5). That step comes before the examination of control. Rule to remember: After a transfer, the entity assesses risks and rewards before concluding (IFRS 9).","es":""}},{"id":"C","text":{"fr":"","en":"There is a transfer: Omega keeps the rights but assumes the obligation to pass on the cash flows.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"There is no transfer, since the contractual rights have not been legally assigned.","es":""},"correct":false,"feedback":{"fr":"","en":"A legal assignment of the rights is one form of transfer; an entity that keeps the rights but assumes the obligation to pay over the cash flows to recipients, under an arrangement meeting the pass-through conditions, also transfers the asset (IFRS 9). The case states the three conditions (IFRS 9, para. 3.2.5). Rule to remember: A qualifying pass-through arrangement is a transfer, even without a legal assignment (IFRS 9).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000056","standard_id":"IFRS9","concept_ids":["IFRS9.DERECOGNITION.RIGHTS_EXPIRY_OR_TRANSFER"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS9.000056","tested_point":"QST.IFRS9.000056","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000003","section_id":"rule-tree"},"references":["IFRS 9 §3.2.3","IFRS 9 §3.2.4"],"exercise":{"prompt":{"fr":"","en":"Which situations constitute a transfer of a financial asset in the derecognition analysis? Several answers are possible.","es":""},"explanation":{"fr":"","en":"There is a transfer if the entity transfers the contractual rights to the cash flows of the asset, or if it keeps them but assumes the obligation to pay them to recipients under an arrangement meeting the pass-through conditions (IFRS 9, para. 3.2.4). Repayment that extinguishes the rights is an expiry, examined as the first question (IFRS 9, para. 3.2.3). Trap: Confusing expiry of the rights, transfer and reclassification. Rule to remember: Two situations constitute a transfer: assignment of the rights, or an obligation to pass on the cash flows under a qualifying arrangement (IFRS 9, para. 3.2.4).","es":""},"common_error":{"fr":"","en":"Calling the debtor's simple repayment of the asset a transfer.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The entity keeps the rights but undertakes to pay the cash flows to recipients, under an arrangement meeting the pass-through conditions.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The entity collects the cash flows of the asset, with no obligation to pass them on to anyone.","es":""},"correct":false,"feedback":{"fr":"","en":"With no assignment of the rights and no obligation to pay the cash flows to recipients, the entity keeps the asset and its cash flows: there is no transfer (IFRS 9, para. 3.2.4). Collecting cash flows is not, in itself, a transfer situation. Rule to remember: Without assignment of the rights or an obligation to pass on the cash flows, there is no transfer (IFRS 9, para. 3.2.4).","es":""}},{"id":"C","text":{"fr":"","en":"The debtor repays the asset at maturity, which extinguishes the contractual rights.","es":""},"correct":false,"feedback":{"fr":"","en":"Repayment at maturity extinguishes the contractual rights: it is an expiry of the rights, the first question of the analysis, and not a transfer (IFRS 9, para. 3.2.3). The two notions lead to different examinations. Rule to remember: Expiry of the rights and transfer are two distinct situations (IFRS 9, para. 3.2.3).","es":""}},{"id":"D","text":{"fr":"","en":"The entity changes the business model for managing the asset and reclassifies it.","es":""},"correct":false,"feedback":{"fr":"","en":"A reclassification results from a change in business model and has no link with the asset leaving the entity: the rights stay with the entity and its cash flows are passed to no one. It is therefore not a transfer within the derecognition analysis (IFRS 9). Rule to remember: Reclassifying an asset is not transferring it (IFRS 9).","es":""}},{"id":"E","text":{"fr":"","en":"The entity transfers to a third party the contractual rights to the cash flows of the asset.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000057","standard_id":"IFRS9","concept_ids":["IFRS9.DERECOGNITION.RISKS_REWARDS"],"dimension":"RULE_KNOWLEDGE","context":"V1_VG.IFRS9.000004","tested_point":"VG.IFRS9.000004","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000003","section_id":"rule-risks"},"references":["IFRS 9 §3.2.6"],"exercise":{"prompt":{"fr":"","en":"IFRS 9 sets a numerical threshold beyond which the entity is deemed to have transferred substantially all the risks and rewards of a financial asset.","es":""},"explanation":{"fr":"","en":"The entity assesses to what extent it keeps the risks and rewards of ownership: transfer of substantially all (derecognition), retention of substantially all (the asset stays recognised), or neither (control is examined); the standard sets no numerical threshold for substantially all (IFRS 9, para. 3.2.6). Trap: Applying a memorised percentage as if it came from the standard. Rule to remember: IFRS 9 does not quantify substantially all the risks and rewards: the assessment is a matter of judgement (IFRS 9, para. 3.2.6).","es":""},"common_error":{"fr":"","en":"Applying a memorised percentage threshold as if the standard required it.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000058","standard_id":"IFRS9","concept_ids":["IFRS9.DERECOGNITION.RISKS_REWARDS"],"dimension":"APPLICATION","context":"V1_VG.IFRS9.000004","tested_point":"VG.IFRS9.000004","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000003","section_id":"rule-risks"},"references":["IFRS 9 §3.2.6","IFRS 9 §3.2.7"],"exercise":{"prompt":{"fr":"","en":"Lambda SA sells a loan portfolio but remains exposed, after the sale, to the same variability in the amounts and timing of net cash flows as before. The rights have indeed been transferred. Which conclusion should be drawn?","es":""},"explanation":{"fr":"","en":"The assessment compares the entity's exposure, before and after the transfer, to the variability in the amounts and timing of the asset's net cash flows (IFRS 9, para. 3.2.7). An unchanged exposure corresponds to retention of substantially all the risks and rewards: the asset stays recognised (IFRS 9, para. 3.2.6). Trap: Concluding that the risks and rewards were transferred because the rights were assigned. Rule to remember: An unchanged exposure to the variability of net cash flows means the asset stays recognised (IFRS 9, para. 3.2.6).","es":""},"common_error":{"fr":"","en":"Considering that the legal assignment of the rights is enough to transfer the risks and rewards.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Lambda has kept substantially all the risks and rewards: the loans stay recognised.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The conclusion depends on the price at which the loans were sold relative to their carrying amount.","es":""},"correct":false,"feedback":{"fr":"","en":"The sale price plays no part in the assessment of risks and rewards: that assessment compares the entity's exposure, before and after the transfer, to the variability in the amounts and timing of net cash flows (IFRS 9). Here the exposure is unchanged, which reflects retention of substantially all (IFRS 9, para. 3.2.6). Rule to remember: The assessment of risks and rewards concerns the entity's exposure, not the sale price (IFRS 9, para. 3.2.6).","es":""}},{"id":"C","text":{"fr":"","en":"Lambda must first examine whether it has kept control, before concluding on the risks and rewards.","es":""},"correct":false,"feedback":{"fr":"","en":"The order of the analysis is the other way round: the entity assesses risks and rewards first; control is examined when the entity has neither transferred nor kept substantially all (IFRS 9, para. 3.2.6). Here the facts already lead to a conclusion on risks and rewards. Rule to remember: Risks and rewards are assessed before control (IFRS 9, para. 3.2.6).","es":""}},{"id":"D","text":{"fr":"","en":"Lambda has transferred substantially all the risks and rewards since the rights were assigned: the loans are derecognised.","es":""},"correct":false,"feedback":{"fr":"","en":"Assigning the rights does not by itself demonstrate the transfer of risks and rewards: the assessment compares the entity's exposure before and after the transfer to the variability of net cash flows (IFRS 9). Here the exposure is unchanged, which reflects retention of substantially all (IFRS 9, para. 3.2.6). Rule to remember: Assigning the rights is not enough to transfer the risks and rewards (IFRS 9, para. 3.2.6).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000059","standard_id":"IFRS9","concept_ids":["IFRS9.DERECOGNITION.RISKS_REWARDS"],"dimension":"ANALYSIS","context":"V1_QST.IFRS9.000059","tested_point":"QST.IFRS9.000059","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000003","section_id":"rule-risks"},"references":["IFRS 9 §3.2.6","IFRS 9 §3.2.7"],"exercise":{"prompt":{"fr":"","en":"A file summarises the analysis of risks and rewards after a transfer of rights. Which sentence is wrong?","es":""},"explanation":{"fr":"","en":"Three outcomes are possible after a transfer of rights: substantially all transferred (derecognition), substantially all kept (the asset stays recognised), or neither, in which case control is examined (IFRS 9, para. 3.2.6). The false sentence removes that control assessment. Trap: Treating the intermediate case as a full transfer. Rule to remember: When substantially all the risks and rewards are neither transferred nor kept, control must be examined (IFRS 9, para. 3.2.6).","es":""},"common_error":{"fr":"","en":"Derecognising as soon as the risks and rewards are no longer fully kept, without examining control.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"If the entity has transferred substantially all the risks and rewards, it derecognises the asset and recognises separately the rights and obligations created or retained.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: transferring substantially all the risks and rewards leads to derecognition, with separate recognition of the rights and obligations created or retained (IFRS 9, para. 3.2.6). The error sits in the intermediate case, where control has to be examined. Rule to remember: Substantially all transferred: derecognition and separate recognition of the rights retained (IFRS 9, para. 3.2.6).","es":""}},{"id":"B","text":{"fr":"","en":"If the entity has neither transferred nor kept substantially all the risks, the asset is derecognised without a control assessment.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"If the entity has kept substantially all the risks and rewards, the asset stays recognised in full.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: keeping substantially all the risks and rewards keeps the asset on the balance sheet (IFRS 9, para. 3.2.6). It is not the sentence sought, which skips a step in the intermediate case. Rule to remember: Substantially all kept: the asset stays recognised (IFRS 9, para. 3.2.6).","es":""}},{"id":"D","text":{"fr":"","en":"The assessment compares the entity's exposure, before and after the transfer, to the variability of the net cash flows of the transferred asset.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: the assessment of risks and rewards rests on comparing the exposure before and after the transfer to the variability of the amounts and timing of net cash flows (IFRS 9). The wrong sentence is the one that removes the control assessment. Rule to remember: Risks and rewards are assessed by comparing the exposure before and after (IFRS 9).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000060","standard_id":"IFRS9","concept_ids":["IFRS9.DERECOGNITION.CONTROL_TEST"],"dimension":"APPLICATION","context":"V1_QST.IFRS9.000060","tested_point":"QST.IFRS9.000060","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000003","section_id":"rule-control"},"references":["IFRS 9 §3.2.9","IFRS 9 §3.2.6"],"exercise":{"prompt":{"fr":"","en":"Zeta SA has transferred a portfolio of receivables without transferring or keeping substantially all the risks and rewards. The buyer can resell the whole portfolio to an unrelated third party, but the contract requires it to obtain Zeta's consent for any resale. Which treatment applies to Zeta?","es":""},"explanation":{"fr":"","en":"Control is not kept if the buyer can sell the asset in its entirety to an unrelated third party, on its own initiative, without additional restrictions; in all other cases it is kept (IFRS 9, para. 3.2.9). Here the consent required from Zeta is a restriction: control is kept and the asset stays recognised to the extent of continuing involvement (IFRS 9, para. 3.2.6). Effect: the portfolio remains in the statement of financial position, for the amount of the continuing involvement. Trap: Settling for the ability to resell. Rule to remember: A resale made subject to the transferor's consent leaves control with the transferor (IFRS 9, para. 3.2.6).","es":""},"common_error":{"fr":"","en":"Concluding that control is lost because the buyer can in principle resell, without reading the restrictions in the contract.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Zeta has lost control, since the buyer can resell the portfolio to an unrelated third party: full derecognition.","es":""},"correct":false,"feedback":{"fr":"","en":"The ability to resell is not enough: the entity has lost control only if the buyer can sell the asset in its entirety, on its own initiative, without imposing additional restrictions (IFRS 9). The obligation to obtain Zeta's consent is such a restriction. Rule to remember: A resale subject to the transferor's consent does not mean control is lost (IFRS 9).","es":""}},{"id":"B","text":{"fr":"","en":"Control is not examined at this stage, because the risks and rewards are not fully transferred: the asset stays recognised in full.","es":""},"correct":false,"feedback":{"fr":"","en":"The intermediate case, where substantially all the risks and rewards are neither transferred nor kept, is precisely the one that leads to examining control (IFRS 9, para. 3.2.6). Keeping the asset in full would amount to treating this case as retention of substantially all. Rule to remember: Neither transferred nor kept: control decides the treatment (IFRS 9, para. 3.2.6).","es":""}},{"id":"C","text":{"fr":"","en":"Control depends on the resale price: Zeta keeps it if the buyer resells at a price below the carrying amount.","es":""},"correct":false,"feedback":{"fr":"","en":"The control criterion does not concern the resale price but the buyer's ability to sell the asset in its entirety to an unrelated third party, on its own initiative, without additional restrictions (IFRS 9). The level of the price plays no part in this assessment. Rule to remember: Control of the transferred asset is assessed through the buyer's ability to sell (IFRS 9).","es":""}},{"id":"D","text":{"fr":"","en":"Zeta has kept control: the asset stays recognised to the extent of its continuing involvement.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000061","standard_id":"IFRS9","concept_ids":["IFRS9.DERECOGNITION.DECISION_TREE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS9.000061","tested_point":"QST.IFRS9.000061","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000003","section_id":"rule-tree"},"references":["IFRS 9 §3.2.3","IFRS 9 §3.2.6"],"exercise":{"prompt":{"fr":"","en":"In what order does the entity carry out the derecognition analysis of a financial asset?","es":""},"explanation":{"fr":"","en":"Analysis approach: first ask whether the contractual rights have expired (IFRS 9, para. 3.2.3); if not, whether there is a transfer; then, if the rights are transferred, to what extent the risks and rewards are kept; finally, if substantially all are neither transferred nor kept, who holds control (IFRS 9, para. 3.2.6). Trap: Putting control at the head of the analysis. Rule to remember: Expiry, transfer, risks and rewards, control: that is the order of examination in the derecognition tree (IFRS 9, para. 3.2.6).","es":""},"common_error":{"fr":"","en":"Starting the analysis with control rather than with expiry of the rights.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Risks and rewards, then expiry of the rights, then control, then transfer.","es":""},"correct":false,"feedback":{"fr":"","en":"Risks and rewards are assessed once a transfer of rights has been established, itself examined after expiry of the rights (IFRS 9, para. 3.2.3). Putting them first amounts to assessing the exposure of an asset whose transfer is not yet known. Rule to remember: Assessing risks and rewards presupposes a transfer already established (IFRS 9, para. 3.2.6).","es":""}},{"id":"B","text":{"fr":"","en":"Control, then risks and rewards, then transfer, then expiry of the rights.","es":""},"correct":false,"feedback":{"fr":"","en":"This order reverses the logic of the tree: the analysis starts with expiry of the rights and moves to control last, when substantially all the risks and rewards are neither transferred nor kept (IFRS 9, para. 3.2.6). Control therefore cannot open the analysis. Rule to remember: Control is the last step of the derecognition tree (IFRS 9, para. 3.2.6).","es":""}},{"id":"C","text":{"fr":"","en":"Transfer, then control, then risks and rewards, without examining expiry of the rights.","es":""},"correct":false,"feedback":{"fr":"","en":"This order leaves out expiry of the rights, which is the first question (IFRS 9, para. 3.2.3), and puts control before risks and rewards although it is examined after them (IFRS 9, para. 3.2.6). Two steps are therefore misplaced. Rule to remember: Expiry of the rights opens the tree; control closes it (IFRS 9, para. 3.2.3).","es":""}},{"id":"D","text":{"fr":"","en":"Expiry of the rights, then transfer, then risks and rewards, then control.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000062","standard_id":"IFRS9","concept_ids":["IFRS9.DERECOGNITION.DECISION_TREE"],"dimension":"APPLICATION","context":"V1_QST.IFRS9.000062","tested_point":"QST.IFRS9.000062","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000003","section_id":"rule-tree"},"references":["IFRS 9 §3.2.6","IFRS 9 §3.2.9"],"exercise":{"prompt":{"fr":"","en":"Pi SA has sold a portfolio of loans to a fund. It has neither transferred nor kept substantially all the risks and rewards, but the fund can sell the whole portfolio to an unrelated third party, on its own initiative and without additional restrictions. What is the conclusion?","es":""},"explanation":{"fr":"","en":"When substantially all the risks and rewards are neither transferred nor kept, control is examined: it is not kept if the transferee can sell the asset in its entirety to an unrelated third party, on its own initiative, without additional restrictions (IFRS 9, para. 3.2.9). The asset is then derecognised and the rights and obligations created or retained are recognised separately (IFRS 9, para. 3.2.6). Trap: Keeping the asset because substantially all the risks have not been transferred. Rule to remember: A transferee free to sell means the transferor has not kept control (IFRS 9, para. 3.2.9).","es":""},"common_error":{"fr":"","en":"Keeping the asset on the balance sheet because substantially all the risks are not transferred, without moving to the control criterion.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Pi has not kept control: it derecognises the loans.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Pi keeps the loans on the balance sheet, for lack of having transferred substantially all the risks and rewards.","es":""},"correct":false,"feedback":{"fr":"","en":"Not having transferred substantially all the risks and rewards does not keep the asset on the balance sheet: when substantially all are neither transferred nor kept, control decides, and the asset is derecognised if control is not kept (IFRS 9, para. 3.2.6). The facts of the case describe a buyer free to sell. Rule to remember: Neither transferred nor kept: the asset leaves if control is not kept (IFRS 9, para. 3.2.6).","es":""}},{"id":"C","text":{"fr":"","en":"Pi derecognises the loans after the fund has actually resold the portfolio to a third party.","es":""},"correct":false,"feedback":{"fr":"","en":"The control criterion rests on the buyer's practical ability to sell the asset, not on an actual resale (IFRS 9). Since the condition is met from the sale, Pi does not have to wait for a later transaction. Rule to remember: The buyer's ability to sell is enough to assess control; actual resale is not required (IFRS 9).","es":""}},{"id":"D","text":{"fr":"","en":"Pi keeps the loans on the balance sheet to the extent of its continuing involvement.","es":""},"correct":false,"feedback":{"fr":"","en":"Continuing involvement applies when control is kept (IFRS 9, para. 3.2.6). Yet the fund can sell the whole portfolio to an unrelated third party, on its own initiative, without additional restrictions: control is not kept (IFRS 9). Rule to remember: Without retained control, there is no continuing involvement (IFRS 9, para. 3.2.6).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000064","standard_id":"IFRS9","concept_ids":["IFRS9.DERECOGNITION.GAIN_LOSS"],"dimension":"CALCULATION","context":"V1_QST.IFRS9.000064","tested_point":"QST.IFRS9.000064","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000003","section_id":"numeric-gain-loss"},"references":["IFRS 9 §3.2.12"],"exercise":{"prompt":{"fr":"","en":"Sigma SA sells for {consideration_received} a portfolio of loans measured at amortised cost, whose carrying amount is {carrying_amount}. The rights are transferred and derecognition of the asset in its entirety is established. Calculate the gain or loss on derecognition.","es":""},"explanation":{"fr":"","en":"Approach: 495,000 − 480,000 = 15,000. The gain or loss on derecognition of a financial asset in its entirety is the difference between the carrying amount and the consideration received, recognised in profit or loss (IFRS 9, para. 3.2.12). Trap: Subtracting the wrong way round and concluding on a loss of 15,000. Rule to remember: The gain or loss on derecognition is the consideration received minus the carrying amount, in profit or loss (IFRS 9, para. 3.2.12).","es":""},"common_error":{"fr":"","en":"Calculating the difference the wrong way round.","es":""},"format":"CALCULATION","placeholders":[{"id":"consideration_received","value":"495000","unit":"EUR"},{"id":"carrying_amount","value":"480000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Consideration received","es":""},"value":"495000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount of the loans sold","es":""},"value":"480000","unit":"EUR"}],"steps":[{"id":"GAIN_ON_DERECOGNITION","label":{"fr":"","en":"Gain on derecognition","es":""},"answer":15000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"GAIN_ON_DERECOGNITION","meaning":{"fr":"","en":"Gain on derecognition","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Consideration received","es":""},"value":495000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Carrying amount of the loans sold","es":""},"value":480000,"unit":"EUR"}],"result":15000,"unit":"EUR"}],"rationale":{"fr":"","en":"The gain or loss on derecognition is the consideration received minus the carrying amount, in profit or loss (IFRS 9, para. 3.2.12).","es":""},"references":["REF.IFRS9.3.2.12"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000065","standard_id":"IFRS9","concept_ids":["IFRS9.DERECOGNITION.GAIN_LOSS"],"dimension":"CALCULATION","context":"V1_QST.IFRS9.000065","tested_point":"QST.IFRS9.000065","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000003","section_id":"numeric-gain-loss"},"references":["IFRS 9 §3.2.12"],"exercise":{"prompt":{"fr":"","en":"Gamma SA holds a debt security measured at FVOCI, whose carrying amount (fair value at the last measurement) is {carrying_amount}. The cumulative gain in OCI is {cumulative_oci}. Gamma sells the security for {consideration_received}. Calculate the difference between the consideration and the carrying amount, then the total effect of derecognition on profit or loss after recycling the cumulative amount in OCI.","es":""},"explanation":{"fr":"","en":"Approach: 520,000 − 500,000 = 20,000; 20,000 + 30,000 of cumulative gain in OCI recycled = 50,000. The difference between the carrying amount and the consideration is recognised in profit or loss on derecognition (IFRS 9, para. 3.2.12); for a debt security at FVOCI, the cumulative amount in OCI is reclassified to profit or loss. Trap: Forgetting the recycling and stopping at 20,000. Rule to remember: On disposal of a debt security at FVOCI, profit or loss receives the price difference and the recycled cumulative amount in OCI (IFRS 9, para. 3.2.12).","es":""},"common_error":{"fr":"","en":"Stopping the calculation at the price difference without recycling the cumulative amount in OCI.","es":""},"format":"CALCULATION","placeholders":[{"id":"consideration_received","value":"520000","unit":"EUR"},{"id":"carrying_amount","value":"500000","unit":"EUR"},{"id":"cumulative_oci","value":"30000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Consideration received","es":""},"value":"520000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount of the security (fair value)","es":""},"value":"500000","unit":"EUR"},{"label":{"fr":"","en":"Cumulative gain in OCI","es":""},"value":"30000","unit":"EUR"}],"steps":[{"id":"GAIN_VS_CARRYING","label":{"fr":"","en":"Consideration less carrying amount","es":""},"answer":20000,"tolerance":0,"unit":"EUR"},{"id":"TOTAL_PROFIT_OR_LOSS","label":{"fr":"","en":"Total effect on profit or loss after recycling","es":""},"answer":50000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"GAIN_VS_CARRYING","meaning":{"fr":"","en":"Consideration less carrying amount","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Consideration received","es":""},"value":520000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Carrying amount of the security (fair value)","es":""},"value":500000,"unit":"EUR"}],"result":20000,"unit":"EUR"},{"step":"TOTAL_PROFIT_OR_LOSS","meaning":{"fr":"","en":"Total effect on profit or loss after recycling","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Consideration less carrying amount","es":""},"value":20000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Cumulative gain in OCI","es":""},"value":30000,"unit":"EUR"}],"result":50000,"unit":"EUR"}],"rationale":{"fr":"","en":"On disposal of a debt security at FVOCI, profit or loss receives the price difference and the recycled cumulative amount in OCI (IFRS 9, para. 3.2.12).","es":""},"references":["REF.IFRS9.3.2.12"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000066","standard_id":"IFRS9","concept_ids":["IFRS9.CLASSIF_ASSETS.OVERVIEW"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS9.000066","tested_point":"QST.IFRS9.000066","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000005","section_id":"rule-categories"},"references":["IFRS 9 §4.1.1","IFRS 9 §4.1.4"],"exercise":{"prompt":{"fr":"","en":"Which two elements determine the subsequent measurement category of a financial asset (amortised cost, FVOCI or FVTPL)?","es":""},"explanation":{"fr":"","en":"Financial assets are classified as measured at amortised cost, FVOCI or FVTPL according to the entity's business model for managing them and the characteristics of their contractual cash flows (IFRS 9, para. 4.1.1). An asset measured neither at amortised cost nor at FVOCI falls into the residual FVTPL category (IFRS 9, para. 4.1.4). Trap: Looking for the criterion in the issuer, the currency or the maturity. Rule to remember: Business model and contractual cash flows determine the measurement category (IFRS 9, para. 4.1.1).","es":""},"common_error":{"fr":"","en":"Looking for the classification criterion in the quality of the issuer rather than in how the asset is managed.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The currency of the asset and the credit rating of the issuer.","es":""},"correct":false,"feedback":{"fr":"","en":"Currency and the issuer's rating may play a part in the analysis of risk or impairment, but they do not determine the measurement category. That category results from the business model and the characteristics of the contractual cash flows (IFRS 9, para. 4.1.1). Rule to remember: Classification depends neither on the currency nor on the issuer's rating (IFRS 9, para. 4.1.1).","es":""}},{"id":"B","text":{"fr":"","en":"The business model for managing the asset and its cash flows.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The issuer's industry and the expected holding period.","es":""},"correct":false,"feedback":{"fr":"","en":"Neither the issuer's industry nor the expected holding period is among the classification criteria. Subsequent measurement depends on the entity's business model for managing the asset and on the characteristics of the contractual cash flows (IFRS 9, para. 4.1.1). Rule to remember: Two criteria drive the classification of a financial asset: business model and contractual cash flows (IFRS 9, para. 4.1.1).","es":""}},{"id":"D","text":{"fr":"","en":"The contractual maturity of the asset and the entity's funding method.","es":""},"correct":false,"feedback":{"fr":"","en":"Contractual maturity and the entity's funding are not the classification criteria. The first criterion is how the entity manages the asset (business model), the second the nature of the contractual cash flows it generates (IFRS 9, para. 4.1.1). Rule to remember: The classification of assets rests on how the asset is managed and on the nature of its cash flows (IFRS 9, para. 4.1.1).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000067","standard_id":"IFRS9","concept_ids":["IFRS9.CLASSIF_ASSETS.OVERVIEW"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS9.000067","tested_point":"QST.IFRS9.000067","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000005","section_id":"rule-categories"},"references":["IFRS 9 §4.1.4"],"exercise":{"prompt":{"fr":"","en":"An equity instrument held as an investment is measured at fair value through profit or loss by default.","es":""},"explanation":{"fr":"","en":"A financial asset measured neither at amortised cost nor at FVOCI is measured at FVTPL; equity instruments, whose cash flows are not payments of principal and interest, fall by default into that category (IFRS 9, para. 4.1.4). Trap: Thinking that shares are measured in OCI by default. Rule to remember: An equity instrument is at FVTPL by default (IFRS 9, para. 4.1.4).","es":""},"common_error":{"fr":"","en":"Believing that a share is measured in OCI without an election.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000068","standard_id":"IFRS9","concept_ids":["IFRS9.CLASSIF_ASSETS.OVERVIEW"],"dimension":"APPLICATION","context":"V1_QST.IFRS9.000068","tested_point":"QST.IFRS9.000068","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000005","section_id":"rule-categories"},"references":["IFRS 9 §4.1.4","IFRS 9 §4.1.1","IFRS 9 §B4.1.6"],"exercise":{"prompt":{"fr":"","en":"Kappa SA manages a portfolio of bonds whose performance is evaluated and monitored on a fair value basis. The contractual cash flows of these bonds are payments of principal and interest. Which measurement category applies?","es":""},"explanation":{"fr":"","en":"A financial asset measured neither at amortised cost nor at FVOCI is measured at FVTPL; a portfolio managed and evaluated on a fair value basis is not held to collect contractual cash flows (IFRS 9, paras. 4.1.4 and B4.1.6). Here the cash flows are SPPI, but the business model is not collection: the category is FVTPL (IFRS 9, para. 4.1.1). Trap: Stopping at the SPPI cash flows and concluding on amortised cost. Rule to remember: A portfolio managed and evaluated at fair value is at FVTPL, even with SPPI cash flows (IFRS 9, paras. 4.1.4 and B4.1.6).","es":""},"common_error":{"fr":"","en":"Concluding on amortised cost as soon as the cash flows are payments of principal and interest.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Fair value through other comprehensive income, because the cash flows are SPPI and the portfolio is evaluated at fair value.","es":""},"correct":false,"feedback":{"fr":"","en":"FVOCI requires a business model whose objective is achieved by both collecting the cash flows and selling assets (IFRS 9, para. 4.1.2A). Evaluating a portfolio at fair value does not describe that model: fair value management leads to FVTPL (IFRS 9, para. 4.1.4). Rule to remember: FVOCI requires a collect-and-sell model, not a mere fair value evaluation (IFRS 9, para. 4.1.2A).","es":""}},{"id":"B","text":{"fr":"","en":"Amortised cost, because the contractual cash flows are payments of principal and interest.","es":""},"correct":false,"feedback":{"fr":"","en":"Amortised cost requires two conditions together: a collection model and SPPI cash flows (IFRS 9, para. 4.1.2). A portfolio managed and evaluated on a fair value basis is not held to collect the cash flows, so the second condition is not enough (IFRS 9, paras. 4.1.4 and B4.1.6). Rule to remember: SPPI cash flows are not enough for amortised cost without a collection model (IFRS 9, para. 4.1.2).","es":""}},{"id":"C","text":{"fr":"","en":"Fair value through profit or loss: a portfolio managed at fair value is not held to collect the cash flows.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Fair value through other comprehensive income, by an irrevocable option chosen at initial recognition.","es":""},"correct":false,"feedback":{"fr":"","en":"The irrevocable option to present fair value changes in OCI concerns investments in equity instruments not held for trading (IFRS 9, para. 5.7.5). It does not apply to a portfolio of bonds managed at fair value. Rule to remember: The FVOCI election concerns equity instruments, not bonds (IFRS 9, para. 5.7.5).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000069","standard_id":"IFRS9","concept_ids":["IFRS9.CLASSIF_ASSETS.BUSINESS_MODEL"],"dimension":"RULE_KNOWLEDGE","context":"V1_VG.IFRS9.000005","tested_point":"VG.IFRS9.000005","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000005","section_id":"rule-business-model"},"references":["IFRS 9 §4.1.2","IFRS 9 §B4.1.2C","IFRS 9 §B4.1.3"],"exercise":{"prompt":{"fr":"","en":"A business model of collecting contractual cash flows requires the entity to hold each asset in the portfolio until maturity.","es":""},"explanation":{"fr":"","en":"An asset is measured at amortised cost if it is held within a model whose objective is to collect contractual cash flows and if its cash flows are SPPI; holding until maturity is not required (IFRS 9, para. B4.1.3). The pattern of sales is assessed through their frequency, value, timing and reasons (IFRS 9, para. B4.1.2C). Trap: Reading collection as no sale possible. Rule to remember: The collection model does not require holding each asset until maturity (IFRS 9, para. B4.1.3).","es":""},"common_error":{"fr":"","en":"Excluding from the collection model a portfolio in which an asset is sold before maturity.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000070","standard_id":"IFRS9","concept_ids":["IFRS9.CLASSIF_ASSETS.BUSINESS_MODEL"],"dimension":"APPLICATION","context":"V1_VG.IFRS9.000005","tested_point":"VG.IFRS9.000005","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000005","section_id":"rule-business-model"},"references":["IFRS 9 §4.1.2","IFRS 9 §B4.1.2C","IFRS 9 §B4.1.3","IFRS 9 §B4.1.3A"],"exercise":{"prompt":{"fr":"","en":"Banque Sud holds a loan portfolio within a collection business model. During the year it sold a few loans whose credit risk had deteriorated. Do these sales call the collection model into question?","es":""},"explanation":{"fr":"","en":"To assess a collection model, one considers the frequency, value and timing of sales, their reasons and expected sales; sales due to deterioration of credit risk are consistent with collection, and the standard sets no threshold (IFRS 9, paras. B4.1.2C and B4.1.3A). Holding until maturity is not required (IFRS 9, para. B4.1.3). Trap: Looking for a percentage of sales that does not exist. Rule to remember: Sales due to credit deterioration do not call the collection model into question (IFRS 9, para. B4.1.3A).","es":""},"common_error":{"fr":"","en":"Setting one's own percentage of sales beyond which collection would be ruled out.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Yes: as soon as a loan is sold, the portfolio stops being held to collect the cash flows.","es":""},"correct":false,"feedback":{"fr":"","en":"A single sale does not end the collection model: holding until maturity is not required (IFRS 9, para. B4.1.3), and the assessment looks at the frequency, value, timing and reasons for sales, including deterioration of credit risk (IFRS 9). Rule to remember: A sale is not enough to rule out the collection model (IFRS 9, para. 4.1.2).","es":""}},{"id":"B","text":{"fr":"","en":"No: sales due to the deterioration of credit risk are consistent with a collection model.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"No, but the portfolio must then be reclassified to FVOCI from the date of the sale.","es":""},"correct":false,"feedback":{"fr":"","en":"The conclusion of consistency is right, but the reclassification does not follow: an asset is reclassified if, and only if, the objective of the business model changes (IFRS 9, para. 4.4.1). Sales consistent with collection do not change that objective. Rule to remember: Sales consistent with collection do not trigger a reclassification (IFRS 9, para. 4.4.1).","es":""}},{"id":"D","text":{"fr":"","en":"No, because the collection model is assessed at the acquisition of each loan, without taking later sales into account.","es":""},"correct":false,"feedback":{"fr":"","en":"The assessment of the collection model takes into account the frequency, value and timing of sales in prior periods, their reasons and expected sales (IFRS 9). Ignoring later sales leaves out relevant elements, even though the 'no' conclusion is right here. Rule to remember: The history and reasons for sales inform the assessment of the collection model (IFRS 9).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000071","standard_id":"IFRS9","concept_ids":["IFRS9.CLASSIF_ASSETS.BUSINESS_MODEL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS9.000071","tested_point":"QST.IFRS9.000071","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000005","section_id":"rule-business-model"},"references":["IFRS 9 §B4.1.1","IFRS 9 §B4.1.2C","IFRS 9 §4.1.2","IFRS 9 §B4.1.2B"],"exercise":{"prompt":{"fr":"","en":"Which elements inform the assessment of the business model of a portfolio of financial assets? Several answers are possible.","es":""},"explanation":{"fr":"","en":"The business model is a matter of judgement and is inferred from the activities carried out: reporting of performance to management, risk management, managers' remuneration (IFRS 9, para. B4.1.2B); for a collection model, the history of sales, their reasons and expected sales are also considered (IFRS 9, para. B4.1.2C). The contractual criterion is separate: it belongs to the cash flow test (IFRS 9, para. 4.1.2). Trap: Mixing the contractual rate (cash flows) with management (model). Rule to remember: The business model is inferred from how the portfolio is actually managed (IFRS 9, para. 4.1.2).","es":""},"common_error":{"fr":"","en":"Confusing the characteristics of the contractual cash flows with the business model.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"How the performance of the portfolio is reported to key management.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The frequency, value and timing of sales in prior periods, with their reasons.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The contractual nominal interest rate of each asset in the portfolio.","es":""},"correct":false,"feedback":{"fr":"","en":"The nominal rate belongs to the characteristics of the contractual cash flows, the second classification criterion, not to the business model (IFRS 9, para. 4.1.2). The business model is inferred from the activities carried out: reporting of performance, risk management, managers' remuneration, sales (IFRS 9). Rule to remember: The business model is assessed on how the portfolio is managed, not on the contractual rate (IFRS 9, para. 4.1.2).","es":""}},{"id":"D","text":{"fr":"","en":"Management's intention for an individual asset, regardless of the portfolio's activity.","es":""},"correct":false,"feedback":{"fr":"","en":"The business model is a judgement inferred from the activities carried out to achieve the portfolio's objective (IFRS 9). An intention specific to one asset does not describe that activity, and a change of intention for particular assets is not a change of model (IFRS 9, para. B4.4.3). Rule to remember: Intention on an individual asset does not define the portfolio's business model (IFRS 9, para. B4.4.3).","es":""}},{"id":"E","text":{"fr":"","en":"How the risks of the portfolio are managed.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000072","standard_id":"IFRS9","concept_ids":["IFRS9.CLASSIF_ASSETS.SPPI_TEST"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS9.000072","tested_point":"QST.IFRS9.000072","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000006","section_id":"rule-sppi"},"references":["IFRS 9 §4.1.3","IFRS 9 §B4.1.7B"],"exercise":{"prompt":{"fr":"","en":"For the contractual cash flow test, what does the principal of a financial asset represent?","es":""},"explanation":{"fr":"","en":"For the contractual cash flow test, the principal is the fair value of the asset at initial recognition; it can change over its life, for example with repayments (IFRS 9, para. B4.1.7B). Interest remunerates the time value of money and the credit risk on the outstanding principal (IFRS 9, para. 4.1.3). Trap: Equating the principal with the nominal amount of the contract. Rule to remember: The principal is the initial fair value, and it can change (IFRS 9, para. B4.1.7B).","es":""},"common_error":{"fr":"","en":"Equating the principal with the nominal amount of the contract.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The acquisition cost of the asset, plus interest accrued at the reporting date.","es":""},"correct":false,"feedback":{"fr":"","en":"Accrued interest is not part of the principal: it remunerates the outstanding principal. The principal is the fair value of the asset at initial recognition, which changes notably with repayments (IFRS 9, para. B4.1.7B). Rule to remember: Interest remunerates the principal, it is not added to it (IFRS 9, para. B4.1.7B).","es":""}},{"id":"B","text":{"fr":"","en":"The fair value of the asset at each reporting date.","es":""},"correct":false,"feedback":{"fr":"","en":"Closing fair value follows market movements; it does not define the principal. The principal is set at initial recognition and changes with contractual events such as repayments (IFRS 9, para. B4.1.7B). Rule to remember: The principal starts from the initial fair value, not from the closing fair value (IFRS 9, para. B4.1.7B).","es":""}},{"id":"C","text":{"fr":"","en":"The initial fair value of the asset, which can change with repayments.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The nominal amount written in the contract, with no expected change.","es":""},"correct":false,"feedback":{"fr":"","en":"The principal is not defined by the nominal amount of the contract: it is the fair value of the asset at initial recognition, which can change over the life of the asset, notably with repayments (IFRS 9, para. B4.1.7B). An asset acquired at a premium or discount shows this well. Rule to remember: The principal is measured at initial fair value, not at nominal (IFRS 9, para. B4.1.7B).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000073","standard_id":"IFRS9","concept_ids":["IFRS9.CLASSIF_ASSETS.SPPI_TEST"],"dimension":"ANALYSIS","context":"V1_QST.IFRS9.000073","tested_point":"QST.IFRS9.000073","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000006","section_id":"rule-sppi"},"references":["IFRS 9 §4.1.3","IFRS 9 §B4.1.7B","IFRS 9 §B4.1.7A"],"exercise":{"prompt":{"fr":"","en":"A training handout presents four statements about the contractual cash flow (SPPI) test. Which one is wrong?","es":""},"explanation":{"fr":"","en":"In the contractual cash flow test, interest remunerates the time value of money and the credit risk on the outstanding principal, as well as other basic lending risks and costs and a margin (IFRS 9, para. 4.1.3). The principal is the initial fair value (IFRS 9, para. B4.1.7B). Trap: Limiting interest to the time value of money. Rule to remember: SPPI interest also remunerates the credit risk on the outstanding principal (IFRS 9, para. 4.1.3).","es":""},"common_error":{"fr":"","en":"Limiting SPPI interest to the time value of money.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The principal is the fair value of the asset at initial recognition.","es":""},"correct":false,"feedback":{"fr":"","en":"This statement is correct: the principal is the fair value at initial recognition and can change over the life (IFRS 9, para. B4.1.7B). It is not the sentence sought, which wrongly excludes credit risk from interest. Rule to remember: The principal is understood at initial fair value (IFRS 9, para. B4.1.7B).","es":""}},{"id":"B","text":{"fr":"","en":"Interest can remunerate other basic lending risks and costs, such as liquidity and holding costs, as well as a margin.","es":""},"correct":false,"feedback":{"fr":"","en":"This statement is correct: interest can cover other basic lending risks and costs, and a margin (IFRS 9). The wrong statement is the one that removes credit risk from the remuneration. Rule to remember: SPPI interest covers time value, credit risk, other basic lending risks and a margin (IFRS 9).","es":""}},{"id":"C","text":{"fr":"","en":"Clauses that expose the cash flows to equity prices do not give rise to SPPI cash flows.","es":""},"correct":false,"feedback":{"fr":"","en":"This statement is correct: exposure to risks or volatility unrelated to a basic lending arrangement, such as equity prices, rules out SPPI cash flows (IFRS 9, para. B4.1.7A). It is not the wrong statement. Rule to remember: Indexation to equity prices is foreign to a basic lending arrangement (IFRS 9, para. B4.1.7A).","es":""}},{"id":"D","text":{"fr":"","en":"Interest remunerates the time value of money but not the credit risk on the outstanding principal.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000074","standard_id":"IFRS9","concept_ids":["IFRS9.CLASSIF_ASSETS.SPPI_TEST"],"dimension":"APPLICATION","context":"V1_QST.IFRS9.000074","tested_point":"QST.IFRS9.000074","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000006","section_id":"rule-sppi"},"references":["IFRS 9 §B4.1.7B","IFRS 9 §4.1.3","IFRS 9 §B4.1.7A"],"exercise":{"prompt":{"fr":"","en":"Vega SA has acquired a bond whose redemption is indexed to the price of an equity index. It holds this portfolio to collect its contractual cash flows. Which measurement category applies?","es":""},"explanation":{"fr":"","en":"Clauses that expose the cash flows to risks or volatility unrelated to a basic lending arrangement, for example equity prices, do not give rise to SPPI cash flows (IFRS 9, para. B4.1.7A). The indexed bond therefore fails the second condition for amortised cost despite the collection model, and falls under FVTPL (IFRS 9, para. 4.1.2). Trap: Concluding from the business model alone. Rule to remember: An asset whose cash flows depend on an equity price fails the contractual cash flow test (IFRS 9, para. B4.1.7A).","es":""},"common_error":{"fr":"","en":"Deducing amortised cost from the collection model alone, without analysing the cash flows.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Fair value through profit or loss: indexation to an equity price exposes the cash flows to a risk foreign to a basic lending arrangement.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Amortised cost, because the portfolio is held to collect the contractual cash flows.","es":""},"correct":false,"feedback":{"fr":"","en":"The collection model is a condition for amortised cost, but it is not enough: the cash flows must also be payments of principal and interest (IFRS 9, para. 4.1.2). Indexation to an equity index exposes the cash flows to volatility unrelated to a basic lending arrangement (IFRS 9, para. B4.1.7A). Rule to remember: Amortised cost requires both a collection model and SPPI cash flows (IFRS 9, para. 4.1.2).","es":""}},{"id":"C","text":{"fr":"","en":"Fair value through other comprehensive income, because the collection model allows the indexation difference to be taken to OCI.","es":""},"correct":false,"feedback":{"fr":"","en":"FVOCI presupposes a collect-and-sell model and SPPI cash flows (IFRS 9, para. 4.1.2A); here the cash flows are not SPPI and the model is collection. OCI does not take the indexation difference of an asset that fails the cash flow test (IFRS 9, para. B4.1.7A). Rule to remember: Non-SPPI cash flows lead to FVTPL, not to FVOCI (IFRS 9, para. B4.1.7B).","es":""}},{"id":"D","text":{"fr":"","en":"Amortised cost, because the indexation is merely a way of calculating the interest.","es":""},"correct":false,"feedback":{"fr":"","en":"Indexation to an equity price is not a mere calculation method: it exposes the cash flows to risks or volatility unrelated to a basic lending arrangement, so the cash flows are not SPPI (IFRS 9, para. B4.1.7A). Rule to remember: Indexation to equities makes the contractual cash flow test fail (IFRS 9, para. B4.1.7A).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000075","standard_id":"IFRS9","concept_ids":["IFRS9.CLASSIF_ASSETS.SPPI_CONTRACT_FEATURES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS9.000075","tested_point":"QST.IFRS9.000075","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000006","section_id":"rule-features"},"references":["IFRS 9 §B4.1.9D","IFRS 9 §B4.1.12"],"exercise":{"prompt":{"fr":"","en":"When the time value of money element of an asset is modified, how does the entity assess the contractual cash flows?","es":""},"explanation":{"fr":"","en":"When the time value of money element is modified, the contractual cash flows are compared with those of a benchmark instrument; if the cash flows could be significantly different, the asset is measured at FVTPL (IFRS 9, para. B4.1.9D). An exception exists for certain prepayable assets acquired at a premium or discount, under conditions (IFRS 9, para. B4.1.12). Trap: Settling for the nominal rate. Rule to remember: A modified time value of money is assessed by comparing the cash flows with a benchmark instrument (IFRS 9, para. B4.1.9D).","es":""},"common_error":{"fr":"","en":"Comparing two interest rates instead of comparing cash flows.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It compares the nominal interest rate with the market rate and concludes according to the difference found.","es":""},"correct":false,"feedback":{"fr":"","en":"The comparison concerns the contractual cash flows of the asset and those of a benchmark instrument, not the nominal rate and the market rate (IFRS 9, para. B4.1.9D). A rate difference does not say whether the cash flows could be significantly different. Rule to remember: Cash flows are compared with benchmark cash flows, not a rate with a market rate (IFRS 9, para. B4.1.9D).","es":""}},{"id":"B","text":{"fr":"","en":"It considers that the cash flows remain SPPI as long as the modification is provided for in the contract.","es":""},"correct":false,"feedback":{"fr":"","en":"That the modification is contractual does not make it SPPI: the cash flows must be compared with those of a benchmark instrument, and FVTPL applies if they could be significantly different (IFRS 9, para. B4.1.9D). Rule to remember: A contractual modification does not dispense with the comparison to the benchmark instrument (IFRS 9, para. B4.1.9D).","es":""}},{"id":"C","text":{"fr":"","en":"It assesses the modification at each reporting date and reclassifies the asset in case of a difference.","es":""},"correct":false,"feedback":{"fr":"","en":"The contractual cash flow test is a classification criterion, not an assessment repeated at each reporting date. An asset is reclassified if, and only if, the objective of its business model changes (IFRS 9, para. 4.4.1). Rule to remember: Contractual features do not trigger a reclassification at each reporting date (IFRS 9, para. 4.4.1).","es":""}},{"id":"D","text":{"fr":"","en":"It compares them with those of a benchmark instrument; if they could be significantly different, the asset is at FVTPL.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000076","standard_id":"IFRS9","concept_ids":["IFRS9.CLASSIF_ASSETS.NONRECOURSE_LINKED"],"dimension":"APPLICATION","context":"V1_QST.IFRS9.000076","tested_point":"QST.IFRS9.000076","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000006","section_id":"rule-nonrecourse"},"references":["IFRS 9 §B4.1.20","IFRS 9 §B4.1.17"],"exercise":{"prompt":{"fr":"","en":"Mu SA holds the whole of the single series of notes issued by a vehicle that holds loans with SPPI cash flows. It wonders whether it must apply the analysis of contractually linked instruments to these notes. Which answer applies?","es":""},"explanation":{"fr":"","en":"For contractually linked instruments (tranches creating concentrations of credit risk), the holder analyses the underlying pool under three conditions; a single-tranche structure is not a contractually linked instrument (IFRS 9, para. B4.1.20). Non-recourse does not in itself rule out SPPI cash flows and may call for a look-through analysis (IFRS 9, para. B4.1.17). Professional judgement: deciding how far to look through. Trap: Calling the notes of a vehicle linked instruments by default. Rule to remember: A single tranche does not form a contractually linked instrument (IFRS 9, para. B4.1.20).","es":""},"common_error":{"fr":"","en":"Calling a note issued by a vehicle a contractually linked instrument.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No, but the note fails the SPPI test because the issuer is a vehicle.","es":""},"correct":false,"feedback":{"fr":"","en":"The fact that the issuer is a vehicle does not by itself cause the test to fail: the underlying assets or the cash flows that generate them are analysed by looking through (IFRS 9, para. B4.1.17). Here the loans held have SPPI cash flows. Rule to remember: The look-through analysis comes before a conclusion on the SPPI test of a note issued by a vehicle (IFRS 9, para. B4.1.17).","es":""}},{"id":"B","text":{"fr":"","en":"No: a single-tranche structure is not a contractually linked instrument.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Yes: as soon as notes are issued by a vehicle, they are contractually linked instruments.","es":""},"correct":false,"feedback":{"fr":"","en":"Issuance by a vehicle is not enough to create contractually linked instruments: the analysis concerns tranches that create concentrations of credit risk, and a single-tranche structure is not one (IFRS 9, para. B4.1.20). Rule to remember: Several tranches are needed to speak of contractually linked instruments (IFRS 9, para. B4.1.20).","es":""}},{"id":"D","text":{"fr":"","en":"Yes, and the note fails the SPPI test because it is non-recourse.","es":""},"correct":false,"feedback":{"fr":"","en":"The non-recourse nature of an asset does not in itself rule out SPPI cash flows: it may lead to analysing, by looking through, the underlying assets or the cash flows that generate them (IFRS 9, para. B4.1.17). It therefore does not cause an automatic failure of the test. Rule to remember: Non-recourse does not mean failing the SPPI test (IFRS 9, para. B4.1.17).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000077","standard_id":"IFRS9","concept_ids":["IFRS9.CLASSIF_ASSETS.FAIR_VALUE_OPTION"],"dimension":"RULE_KNOWLEDGE","context":"V1_VG.IFRS9.000006","tested_point":"VG.IFRS9.000006","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000007","section_id":"rule-fvo"},"references":["IFRS 9 §4.1.5"],"exercise":{"prompt":{"fr":"","en":"The entity may designate a financial asset at fair value through profit or loss after initial recognition, at the time the accounting mismatch arises.","es":""},"explanation":{"fr":"","en":"At initial recognition, the entity may irrevocably designate a financial asset at FVTPL if that designation eliminates or significantly reduces an accounting mismatch (IFRS 9, para. 4.1.5). The date of designation is therefore the date of initial recognition. Trap: Designating the asset at the reporting date, once the mismatch is noted. Rule to remember: Designation at FVTPL is made at initial recognition and is irrevocable (IFRS 9, para. 4.1.5).","es":""},"common_error":{"fr":"","en":"Designating the asset at the reporting date, when the mismatch is noted.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000078","standard_id":"IFRS9","concept_ids":["IFRS9.CLASSIF_ASSETS.FAIR_VALUE_OPTION"],"dimension":"APPLICATION","context":"V1_VG.IFRS9.000006","tested_point":"VG.IFRS9.000006","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000007","section_id":"rule-fvo"},"references":["IFRS 9 §4.1.5"],"exercise":{"prompt":{"fr":"","en":"Rhône SA acquires bonds that would be measured at amortised cost. It funds them with a borrowing measured at fair value through profit or loss, which would create an accounting mismatch. Which course of action is possible for the bonds?","es":""},"explanation":{"fr":"","en":"At initial recognition, the entity may irrevocably designate a financial asset at FVTPL if that designation eliminates or significantly reduces an accounting mismatch, that is a measurement or recognition of gains and losses on different bases (IFRS 9, para. 4.1.5). Here the bonds at amortised cost and the borrowing at FVTPL would be measured on different bases. Professional judgement: assessing whether the reduction is significant. Trap: Designating too late or through FVOCI. Rule to remember: An asset can be designated at FVTPL at initial recognition to reduce a mismatch (IFRS 9, para. 4.1.5).","es":""},"common_error":{"fr":"","en":"Treating designation at FVTPL as compulsory, or as revocable at the reporting date.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It must designate them at FVTPL, the designation being compulsory when an accounting mismatch exists.","es":""},"correct":false,"feedback":{"fr":"","en":"Designation at FVTPL is an option: the entity may designate the asset if this eliminates or significantly reduces a mismatch (IFRS 9, para. 4.1.5). The standard does not make it an obligation. Professional judgement: assessing whether the reduction is significant. Rule to remember: Designation at FVTPL is optional and irrevocable (IFRS 9, para. 4.1.5).","es":""}},{"id":"B","text":{"fr":"","en":"At the reporting date, after measuring the profit or loss difference, designate them at FVTPL, then return to amortised cost if the difference disappears.","es":""},"correct":false,"feedback":{"fr":"","en":"Designation is made at initial recognition and is irrevocable: it is neither possible to wait until the reporting date nor to return to amortised cost afterwards (IFRS 9, para. 4.1.5). A late or reversible designation would contradict both features. Rule to remember: Designation at inception, with no way back (IFRS 9, para. 4.1.5).","es":""}},{"id":"C","text":{"fr":"","en":"At initial recognition, irrevocably designate them at FVTPL if this significantly reduces the mismatch.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Designate them at FVOCI to offset the mismatch.","es":""},"correct":false,"feedback":{"fr":"","en":"The option provided to reduce an accounting mismatch is designation at FVTPL, not at FVOCI (IFRS 9, para. 4.1.5). Recognising the changes in OCI would not put them in profit or loss alongside those of the borrowing. Rule to remember: The mismatch is reduced by designation at FVTPL (IFRS 9, para. 4.1.5).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000079","standard_id":"IFRS9","concept_ids":["IFRS9.CLASSIF_ASSETS.EQUITY_ELECTION"],"dimension":"RULE_KNOWLEDGE","context":"V1_VG.IFRS9.000007","tested_point":"VG.IFRS9.000007","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000007","section_id":"rule-election"},"references":["IFRS 9 §5.7.5","IFRS 9 §B5.7.1"],"exercise":{"prompt":{"fr":"","en":"For an investment in shares for which the FVOCI election has been made, the amounts accumulated in OCI are not reclassified to profit or loss when the investment is disposed of.","es":""},"explanation":{"fr":"","en":"At initial recognition, the entity may make the irrevocable, instrument-by-instrument election to present in OCI the fair value changes of an investment in an equity instrument not held for trading; the amounts in OCI are not reclassified to profit or loss on disposal, but may be transferred within equity (IFRS 9, paras. 5.7.5 and B5.7.1). Trap: Applying the recycling provided for debt securities at FVOCI. Rule to remember: No recycling to profit or loss for the FVOCI election on shares (IFRS 9, paras. 5.7.5 and B5.7.1).","es":""},"common_error":{"fr":"","en":"Reclassifying to profit or loss, on disposal, the accumulated amount of an election on shares.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000080","standard_id":"IFRS9","concept_ids":["IFRS9.CLASSIF_ASSETS.EQUITY_ELECTION"],"dimension":"APPLICATION","context":"V1_VG.IFRS9.000007","tested_point":"VG.IFRS9.000007","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000007","section_id":"rule-election"},"references":["IFRS 9 §5.7.5","IFRS 9 §5.7.6","IFRS 9 §B5.7.1"],"exercise":{"prompt":{"fr":"","en":"Alpha SA acquires 5% of the shares of a listed company, not held for trading, and elects to measure them at FVOCI. A year later, it sells these shares with accumulated gains of 12,000 in OCI. How should this accumulated amount be treated?","es":""},"explanation":{"fr":"","en":"The election to present in OCI the fair value changes of an investment in equity instruments is irrevocable and made instrument by instrument; the amounts in OCI are not reclassified to profit or loss on disposal, a transfer within equity being possible (IFRS 9, paras. 5.7.5 and B5.7.1). Dividends are in principle recognised in profit or loss (IFRS 9, para. 5.7.6). Trap: Recycling the gain of 12,000 to profit or loss. Rule to remember: The accumulated gain of the election on shares stays in OCI on sale (IFRS 9, paras. 5.7.5 and B5.7.1).","es":""},"common_error":{"fr":"","en":"Applying the recycling of debt securities to an investment in shares.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It stays in OCI, with no reclassification to profit or loss on sale.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"It is reclassified to profit or loss at the date of sale.","es":""},"correct":false,"feedback":{"fr":"","en":"That recycling applies to debt securities at FVOCI, whose accumulated amount in OCI is reclassified to profit or loss on derecognition (IFRS 9). For the election on shares, the amounts in OCI are not reclassified to profit or loss (IFRS 9, paras. 5.7.5 and B5.7.1). Rule to remember: Recycling concerns debt securities, not the election on shares (IFRS 9, paras. 5.7.5 and B5.7.1).","es":""}},{"id":"C","text":{"fr":"","en":"It is reclassified to profit or loss, because the election lapses at the date of sale.","es":""},"correct":false,"feedback":{"fr":"","en":"The election is irrevocable and made instrument by instrument; it does not lapse on sale, and it precisely entails that the amounts in OCI are not reclassified (IFRS 9, paras. 5.7.5 and B5.7.1). Rule to remember: The election is irrevocable and its amounts in OCI are not recycled (IFRS 9, paras. 5.7.5 and B5.7.1).","es":""}},{"id":"D","text":{"fr":"","en":"It is reclassified to profit or loss if the sale yields a gain, and stays in OCI in case of a loss.","es":""},"correct":false,"feedback":{"fr":"","en":"The treatment does not depend on the sign of the result of the sale: for the election on shares, the amounts in OCI are not reclassified to profit or loss, whether positive or negative (IFRS 9, paras. 5.7.5 and B5.7.1). The standard provides no asymmetric rule. Rule to remember: No recycling, whether the difference is positive or negative (IFRS 9, paras. 5.7.5 and B5.7.1).","es":""}}]},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IFRS9.000082","standard_id":"IFRS9","concept_ids":["IFRS9.CLASSIF_LIABS.AMORTISED_COST_DEFAULT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS9.000082","tested_point":"QST.IFRS9.000082","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000008","section_id":"rule-default"},"references":["IFRS 9 §4.2.1"],"exercise":{"prompt":{"fr":"","en":"A financial liability is subsequently measured at fair value through profit or loss, with some exceptions.","es":""},"explanation":{"fr":"","en":"Financial liabilities are classified as subsequently measured at amortised cost, with exceptions, notably liabilities at FVTPL (including liabilities held for trading, derivatives included), liabilities arising from a transfer of an asset not derecognised, financial guarantee contracts and below-market loan commitments (IFRS 9, para. 4.2.1). Trap: Swapping the rule and the exception. Rule to remember: Amortised cost is the default rule for financial liabilities (IFRS 9, para. 4.2.1).","es":""},"common_error":{"fr":"","en":"Swapping the default rule (amortised cost) and the exception (FVTPL).","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000083","standard_id":"IFRS9","concept_ids":["IFRS9.CLASSIF_LIABS.AMORTISED_COST_DEFAULT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS9.000083","tested_point":"QST.IFRS9.000083","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000008","section_id":"rule-default"},"references":["IFRS 9 §4.2.1"],"exercise":{"prompt":{"fr":"","en":"Among these financial liabilities, which one is an exception to subsequent measurement at amortised cost?","es":""},"explanation":{"fr":"","en":"Financial liabilities are measured at amortised cost, with exceptions: liabilities at FVTPL (including those held for trading, derivatives included), liabilities arising from a transfer of an asset not derecognised, financial guarantee contracts, below-market loan commitments (IFRS 9, para. 4.2.1). A derivative liability held for trading therefore falls under FVTPL. Trap: Believing that exceptions concern assets and not liabilities. Rule to remember: A derivative liability held for trading is at FVTPL (IFRS 9, para. 4.2.1).","es":""},"common_error":{"fr":"","en":"Thinking that bond liabilities are measured at fair value by default.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A derivative liability held for trading.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"A bond issued at a market rate.","es":""},"correct":false,"feedback":{"fr":"","en":"A bond issued at a market rate is not, in itself, an exception: it is subsequently measured at amortised cost unless held for trading or designated at FVTPL (IFRS 9, para. 4.2.1). Its being listed or a bond changes nothing. Rule to remember: An ordinary bond liability is at amortised cost (IFRS 9, para. 4.2.1).","es":""}},{"id":"C","text":{"fr":"","en":"A fixed-rate bank loan, repayable at maturity.","es":""},"correct":false,"feedback":{"fr":"","en":"An ordinary bank loan is not among the exceptions: financial liabilities are measured at amortised cost by default (IFRS 9, para. 4.2.1). The exceptions cover in particular liabilities at FVTPL, financial guarantees and below-market commitments. Rule to remember: An ordinary loan stays at amortised cost (IFRS 9, para. 4.2.1).","es":""}},{"id":"D","text":{"fr":"","en":"A trade payable due in sixty days.","es":""},"correct":false,"feedback":{"fr":"","en":"A trade payable is neither held for trading nor designated at FVTPL: it follows the default rule of amortised cost (IFRS 9, para. 4.2.1). Its short maturity does not bring it into the list of exceptions. Rule to remember: A short maturity does not change the measurement category of a liability (IFRS 9, para. 4.2.1).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000084","standard_id":"IFRS9","concept_ids":["IFRS9.CLASSIF_LIABS.AMORTISED_COST_DEFAULT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS9.000084","tested_point":"QST.IFRS9.000084","difficulty":"BEGINNER","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000008","section_id":"rule-default"},"references":["IFRS 9 §4.2.1"],"exercise":{"prompt":{"fr":"","en":"Which situations are an exception to the subsequent measurement of a financial liability at amortised cost? Several answers are possible.","es":""},"explanation":{"fr":"","en":"The exceptions to subsequent measurement at amortised cost include liabilities at FVTPL (including those held for trading), liabilities arising from a transfer of an asset that does not qualify for derecognition, financial guarantee contracts and below-market loan commitments; the list is partial (IFRS 9, para. 4.2.1). Trap: Extending the exceptions to ordinary liabilities. Rule to remember: Ordinary liabilities stay at amortised cost; the special cases are listed (IFRS 9, para. 4.2.1).","es":""},"common_error":{"fr":"","en":"Treating an ordinary debt as an exception to the amortised cost rule.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"An ordinary fixed-rate bank loan.","es":""},"correct":false,"feedback":{"fr":"","en":"An ordinary bank loan follows the default rule: it is measured at amortised cost (IFRS 9, para. 4.2.1). It is neither among the liabilities at FVTPL, nor the guarantees, nor the liabilities arising from a transfer not derecognised. Rule to remember: An ordinary loan is not an exception (IFRS 9, para. 4.2.1).","es":""}},{"id":"B","text":{"fr":"","en":"An ordinary trade payable.","es":""},"correct":false,"feedback":{"fr":"","en":"An ordinary trade payable is a financial liability measured at amortised cost, as the default rule provides (IFRS 9, para. 4.2.1). It is neither held for trading nor designated at FVTPL. Rule to remember: An ordinary trade debt stays at amortised cost (IFRS 9, para. 4.2.1).","es":""}},{"id":"C","text":{"fr":"","en":"A liability arising from a transfer of an asset that does not qualify for derecognition.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A liability held for trading.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"A financial guarantee contract.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000085","standard_id":"IFRS9","concept_ids":["IFRS9.CLASSIF_LIABS.OWN_CREDIT"],"dimension":"CALCULATION","context":"V1_VG.IFRS9.000008","tested_point":"VG.IFRS9.000008","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000008","section_id":"rule-own-credit"},"references":["IFRS 9 §5.7.7","IFRS 9 §5.7.8"],"exercise":{"prompt":{"fr":"","en":"Éta SA has designated a borrowing at FVTPL. Over the year, the fair value change of the liability is {total_fair_value_change}, of which {own_credit_change} is attributable to the change in own credit risk (case datum). No accounting mismatch results from the presentation in OCI. Calculate the part of the change presented in profit or loss and the part presented in OCI.","es":""},"explanation":{"fr":"","en":"Approach: part in OCI = 38,000 (own credit risk); part in profit or loss = 95,000 − 38,000 = 57,000. For a liability designated at FVTPL, the part of the change attributable to own credit risk is presented in OCI and the rest in profit or loss (IFRS 9, para. 5.7.7). Case convention: the own-credit part is a datum, not a prescribed method. Trap: Presenting the whole 95,000 in profit or loss. Rule to remember: The own-credit part of a designated liability goes to OCI, the rest to profit or loss (IFRS 9, para. 5.7.7).","es":""},"common_error":{"fr":"","en":"Presenting the whole fair value change in profit or loss.","es":""},"format":"CALCULATION","placeholders":[{"id":"total_fair_value_change","value":"95000","unit":"EUR"},{"id":"own_credit_change","value":"38000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Total fair value change of the liability","es":""},"value":"95000","unit":"EUR"},{"label":{"fr":"","en":"Part attributable to own credit risk","es":""},"value":"38000","unit":"EUR"}],"steps":[{"id":"CHANGE_IN_PROFIT_OR_LOSS","label":{"fr":"","en":"Part of the change in profit or loss","es":""},"answer":57000,"tolerance":0,"unit":"EUR"},{"id":"CHANGE_IN_OCI","label":{"fr":"","en":"Part of the change in OCI","es":""},"answer":38000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"CHANGE_IN_PROFIT_OR_LOSS","meaning":{"fr":"","en":"Part of the change in profit or loss","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Total fair value change of the liability","es":""},"value":95000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Part attributable to own credit risk","es":""},"value":38000,"unit":"EUR"}],"result":57000,"unit":"EUR"}],"rationale":{"fr":"","en":"The own-credit part of a designated liability goes to OCI, the rest to profit or loss (IFRS 9, para. 5.7.7).","es":""},"references":["REF.IFRS9.5.7.7","REF.IFRS9.5.7.8"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000087","standard_id":"IFRS9","concept_ids":["IFRS9.MEASUREMENT.EFFECTIVE_INTEREST"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS9.000087","tested_point":"QST.IFRS9.000087","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000009","section_id":"rule-fees"},"references":["IFRS 9 §B5.4.1","IFRS 9 §5.4.1","IFRS 9 §B5.4.8"],"exercise":{"prompt":{"fr":"","en":"A bank grants a loan measured at amortised cost. Which of these fees is an integral part of the effective interest rate?","es":""},"explanation":{"fr":"","en":"Fees that are an integral part of the effective interest rate, such as origination fees received for creating or acquiring a financial asset, adjust that rate; fees that are not part of it, such as servicing or syndication, fall under IFRS 15 (IFRS 9, paras. B5.4.1 to B5.4.3). Transaction costs exclude internal costs (IFRS 9, para. B5.4.8). Trap: Building service fees into the effective rate. Rule to remember: Fees linked to the creation of the asset are built into the effective rate; the others fall under IFRS 15 (IFRS 9, paras. B5.4.1 to B5.4.3).","es":""},"common_error":{"fr":"","en":"Building into the effective rate service fees that fall under IFRS 15.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The loan servicing fees charged to the borrower each year.","es":""},"correct":false,"feedback":{"fr":"","en":"Servicing fees are not an integral part of the effective interest rate: they remunerate a service rendered and fall under IFRS 15 (IFRS 9, paras. B5.4.1 to B5.4.3). Fees linked to the creation of the asset, such as origination fees, adjust the rate. Rule to remember: Service fees fall under IFRS 15, not under the effective rate (IFRS 9, paras. B5.4.1 to B5.4.3).","es":""}},{"id":"B","text":{"fr":"","en":"The origination fees received for creating the financial asset.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The internal administrative costs of the credit department, allocated to the loan.","es":""},"correct":false,"feedback":{"fr":"","en":"Internal costs are not transaction costs: transaction costs include in particular fees paid to agents, advisers and brokers, but exclude internal costs (IFRS 9). They therefore do not give rise to an adjustment of the effective rate. Rule to remember: Internal costs are not built into the effective rate (IFRS 9).","es":""}},{"id":"D","text":{"fr":"","en":"The syndication fees received for placing the loan with other banks.","es":""},"correct":false,"feedback":{"fr":"","en":"Syndication fees are cited among those that are not part of the effective interest rate and fall under IFRS 15 (IFRS 9, paras. B5.4.1 to B5.4.3). They remunerate a placement with third parties, not the creation of the asset. Rule to remember: Syndication: outside the effective rate, under IFRS 15 (IFRS 9, paras. B5.4.1 to B5.4.3).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000088","standard_id":"IFRS9","concept_ids":["IFRS9.MEASUREMENT.EFFECTIVE_INTEREST"],"dimension":"CALCULATION","context":"V1_QST.IFRS9.000088","tested_point":"QST.IFRS9.000088","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000009","section_id":"rule-fees"},"references":["IFRS 9 §B5.4.1","IFRS 9 §5.4.1"],"exercise":{"prompt":{"fr":"","en":"Nova SA grants a loan measured at amortised cost, whose fair value at origination is {fair_value}. It receives from the borrower origination fees of {integral_fees_received}, which are an integral part of the effective interest rate, and incurs direct transaction costs of {transaction_costs}. Calculate the net initial amount used to compute the effective interest rate.","es":""},"explanation":{"fr":"","en":"Approach: 505,000 − 10,000 + 5,000 = 500,000. Origination fees received are an integral part of the effective interest rate and reduce the amount advanced; direct transaction costs are added to it (IFRS 9, para. B5.4.1). Case convention: the signs follow the lender's position. Trap: Adding the fees received instead of deducting them (510,000). Rule to remember: The net initial amount is fair value minus fees received plus direct costs (IFRS 9, para. B5.4.1).","es":""},"common_error":{"fr":"","en":"Adding the origination fees received instead of deducting them.","es":""},"format":"CALCULATION","placeholders":[{"id":"fair_value","value":"505000","unit":"EUR"},{"id":"integral_fees_received","value":"10000","unit":"EUR"},{"id":"transaction_costs","value":"5000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Fair value of the loan at origination","es":""},"value":"505000","unit":"EUR"},{"label":{"fr":"","en":"Origination fees received from the borrower","es":""},"value":"10000","unit":"EUR"},{"label":{"fr":"","en":"Direct transaction costs incurred","es":""},"value":"5000","unit":"EUR"}],"steps":[{"id":"INITIAL_NET_AMOUNT","label":{"fr":"","en":"Net initial amount used for the effective rate","es":""},"answer":500000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"INITIAL_NET_AMOUNT","meaning":{"fr":"","en":"Net initial amount used for the effective rate","es":""},"expression":"a - b + c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value of the loan at origination","es":""},"value":505000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Origination fees received from the borrower","es":""},"value":10000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Direct transaction costs incurred","es":""},"value":5000,"unit":"EUR"}],"result":500000,"unit":"EUR"}],"rationale":{"fr":"","en":"The net initial amount is fair value minus fees received plus direct costs (IFRS 9, para. B5.4.1).","es":""},"references":["REF.IFRS9.B5.4.1","REF.IFRS9.5.4.1"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000089","standard_id":"IFRS9","concept_ids":["IFRS9.MEASUREMENT.EFFECTIVE_INTEREST"],"dimension":"CALCULATION","context":"V1_QST.IFRS9.000089","tested_point":"QST.IFRS9.000089","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000009","section_id":"rule-fees"},"references":["IFRS 9 §5.4.1","IFRS 9"],"exercise":{"prompt":{"fr":"","en":"Zéta SA acquires a zero-coupon security repayable in two years for {redemption_amount}, with no other cash flow. The annual effective interest rate, given by the case, is {effective_rate}, and the security is measured at amortised cost. Calculate the initial amount of the security (present value of the cash flows at the effective rate), then the interest income for the first year.","es":""},"explanation":{"fr":"","en":"Approach: 1,102,500 / 1.05² = 1,102,500 / 1.1025 = 1,000,000; interest for the first year: 1,000,000 × 5% = 50,000. The effective interest rate discounts the estimated future cash flows over the expected life (IFRS 9, Appendix A, A.AMORTISED); interest income is obtained by applying it to the opening carrying amount (IFRS 9, para. 5.4.1). Case convention: the rate is a datum. Trap: Computing interest on the redemption amount (55,125). Rule to remember: Interest for the period is the opening carrying amount multiplied by the effective rate (IFRS 9, para. 5.4.1).","es":""},"common_error":{"fr":"","en":"Applying the effective rate to the redemption amount rather than to the opening carrying amount.","es":""},"format":"CALCULATION","placeholders":[{"id":"redemption_amount","value":"1102500","unit":"EUR"},{"id":"effective_rate","value":"5","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Amount repayable in two years","es":""},"value":"1102500","unit":"EUR"},{"label":{"fr":"","en":"Annual effective interest rate (case datum)","es":""},"value":"5","unit":"PERCENT"}],"steps":[{"id":"INITIAL_AMOUNT","label":{"fr":"","en":"Initial amount (present value)","es":""},"answer":1000000,"tolerance":0,"unit":"EUR"},{"id":"INTEREST_Y1","label":{"fr":"","en":"Interest income for the first year","es":""},"answer":50000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"INITIAL_AMOUNT","meaning":{"fr":"","en":"Initial amount (present value)","es":""},"expression":"a / (1 + b)^2","variables":[{"symbol":"a","meaning":{"fr":"","en":"Amount repayable in two years","es":""},"value":1102500,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Annual effective interest rate (case datum)","es":""},"value":5,"unit":"PERCENT"}],"result":1000000,"unit":"EUR"},{"step":"INTEREST_Y1","meaning":{"fr":"","en":"Interest income for the first year","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Initial amount (present value)","es":""},"value":1000000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Annual effective interest rate (case datum)","es":""},"value":5,"unit":"PERCENT"}],"result":50000,"unit":"EUR"}],"rationale":{"fr":"","en":"Interest for the period is the opening carrying amount multiplied by the effective rate (IFRS 9, para. 5.4.1).","es":""},"references":["REF.IFRS9.5.4.1","REF.IFRS9.A.AMORTISED"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000091","standard_id":"IFRS9","concept_ids":["IFRS9.MEASUREMENT.WRITE_OFF"],"dimension":"CALCULATION","context":"V1_QST.IFRS9.000091","tested_point":"QST.IFRS9.000091","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000014","section_id":"rule-write-off"},"references":["IFRS 9 §5.4.4"],"exercise":{"prompt":{"fr":"","en":"Over the year, the loss allowance of a portfolio of loans of Lune SA moves from {opening_allowance} to {closing_allowance}. During the year, loans were written off for {write_offs}, charged against the loss allowance. Calculate the impairment expense for the year.","es":""},"explanation":{"fr":"","en":"Approach: 65,000 − 50,000 + 20,000 = 35,000. The write-off of 20,000 used up loss allowance without a charge; the charge for the year is therefore the change in the allowance plus the write-offs (IFRS 9, para. 5.4.4). Trap: Keeping the change of 15,000 and forgetting the write-offs. Rule to remember: Impairment expense = closing allowance − opening allowance + write-offs (IFRS 9, para. 5.4.4).","es":""},"common_error":{"fr":"","en":"Forgetting to add the write-offs to the change in the loss allowance.","es":""},"format":"CALCULATION","placeholders":[{"id":"opening_allowance","value":"50000","unit":"EUR"},{"id":"closing_allowance","value":"65000","unit":"EUR"},{"id":"write_offs","value":"20000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Opening loss allowance","es":""},"value":"50000","unit":"EUR"},{"label":{"fr":"","en":"Closing loss allowance","es":""},"value":"65000","unit":"EUR"},{"label":{"fr":"","en":"Write-offs charged against the loss allowance","es":""},"value":"20000","unit":"EUR"}],"steps":[{"id":"IMPAIRMENT_EXPENSE","label":{"fr":"","en":"Impairment expense for the year","es":""},"answer":35000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"IMPAIRMENT_EXPENSE","meaning":{"fr":"","en":"Impairment expense for the year","es":""},"expression":"a - b + c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Closing loss allowance","es":""},"value":65000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Opening loss allowance","es":""},"value":50000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Write-offs charged against the loss allowance","es":""},"value":20000,"unit":"EUR"}],"result":35000,"unit":"EUR"}],"rationale":{"fr":"","en":"Impairment expense = closing allowance − opening allowance + write-offs (IFRS 9, para. 5.4.4).","es":""},"references":["REF.IFRS9.5.4.4"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000092","standard_id":"IFRS9","concept_ids":["IFRS9.MEASUREMENT.FVOCI_DEBT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS9.000092","tested_point":"QST.IFRS9.000092","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000010","section_id":"rule-fvoci"},"references":["IFRS 9 §5.7.10","IFRS 9 §5.5.2"],"exercise":{"prompt":{"fr":"","en":"For a debt security measured at FVOCI, which component is recognised in other comprehensive income?","es":""},"explanation":{"fr":"","en":"For a debt security at FVOCI, interest (effective interest rate), credit losses and exchange differences calculated on amortised cost go to profit or loss, and the other fair value changes to OCI; on derecognition, the cumulative amount in OCI is reclassified to profit or loss (IFRS 9, para. 5.7.10). The effect on profit or loss is therefore that of amortised cost. Trap: Running interest through OCI. Rule to remember: Fair value changes other than interest, impairment and exchange go to OCI (IFRS 9, para. 5.7.10).","es":""},"common_error":{"fr":"","en":"Taking the interest of a security at FVOCI directly to OCI.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The exchange differences calculated on amortised cost.","es":""},"correct":false,"feedback":{"fr":"","en":"Exchange differences calculated on amortised cost go to profit or loss with interest and credit losses (IFRS 9, para. 5.7.10). OCI receives the other fair value changes. Rule to remember: Exchange differences on the amortised cost of a security at FVOCI go to profit or loss (IFRS 9, para. 5.7.10).","es":""}},{"id":"B","text":{"fr":"","en":"The expected credit losses of the year.","es":""},"correct":false,"feedback":{"fr":"","en":"Credit losses go to profit or loss (IFRS 9, para. 5.7.10): the impairment loss is recognised in profit or loss, while the corresponding loss allowance is presented in OCI without reducing the carrying amount of the security (IFRS 9, para. 5.5.2). Confusing the counterpart in OCI with the charge leads to an error in profit or loss. Rule to remember: The credit loss charge is in profit or loss (IFRS 9, para. 5.7.10).","es":""}},{"id":"C","text":{"fr":"","en":"The interest for the year calculated under the effective interest method.","es":""},"correct":false,"feedback":{"fr":"","en":"Interest calculated at the effective interest rate goes to profit or loss, as for an asset at amortised cost: the effect on profit or loss is that of amortised cost (IFRS 9, para. 5.7.10). The other fair value changes go through OCI. Rule to remember: Interest, credit losses and exchange differences in profit or loss; the rest in OCI (IFRS 9, para. 5.7.10).","es":""}},{"id":"D","text":{"fr":"","en":"Fair value changes other than interest, credit losses and exchange differences.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000093","standard_id":"IFRS9","concept_ids":["IFRS9.MEASUREMENT.FVOCI_DEBT"],"dimension":"CALCULATION","context":"V1_QST.IFRS9.000093","tested_point":"QST.IFRS9.000093","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000010","section_id":"rule-fvoci"},"references":["IFRS 9 §5.7.10"],"exercise":{"prompt":{"fr":"","en":"Delta SA holds a debt security measured at FVOCI. At 31 December, its fair value is {fair_value_closing} and its amortised cost is {amortised_cost_closing}. Calculate the cumulative amount to present in OCI (before any loss allowance).","es":""},"explanation":{"fr":"","en":"Approach: 1,030,000 − 1,012,000 = 18,000. Interest, credit losses and exchange differences calculated on amortised cost go to profit or loss; the other fair value changes go to OCI, so the cumulative amount in OCI is the gap between fair value and amortised cost (IFRS 9, para. 5.7.10). Trap: Taking the whole fair value (1,030,000) as the cumulative amount. Rule to remember: Cumulative amount in OCI = fair value − amortised cost (IFRS 9, para. 5.7.10).","es":""},"common_error":{"fr":"","en":"Presenting in OCI the whole fair value instead of the gap with amortised cost.","es":""},"format":"CALCULATION","placeholders":[{"id":"fair_value_closing","value":"1030000","unit":"EUR"},{"id":"amortised_cost_closing","value":"1012000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Closing fair value","es":""},"value":"1030000","unit":"EUR"},{"label":{"fr":"","en":"Closing amortised cost","es":""},"value":"1012000","unit":"EUR"}],"steps":[{"id":"CUMULATIVE_OCI","label":{"fr":"","en":"Cumulative amount to present in OCI","es":""},"answer":18000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"CUMULATIVE_OCI","meaning":{"fr":"","en":"Cumulative amount to present in OCI","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Closing fair value","es":""},"value":1030000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Closing amortised cost","es":""},"value":1012000,"unit":"EUR"}],"result":18000,"unit":"EUR"}],"rationale":{"fr":"","en":"Cumulative amount in OCI = fair value − amortised cost (IFRS 9, para. 5.7.10).","es":""},"references":["REF.IFRS9.5.7.10"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000096","standard_id":"IFRS9","concept_ids":["IFRS9.MEASUREMENT.FVTPL_GAINS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS9.000096","tested_point":"QST.IFRS9.000096","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000010","section_id":"rule-fvtpl"},"references":["IFRS 9 §5.7.1"],"exercise":{"prompt":{"fr":"","en":"The fair value changes of a financial asset measured at fair value through profit or loss are presented in other comprehensive income.","es":""},"explanation":{"fr":"","en":"Gains and losses on financial assets measured at fair value are recognised in profit or loss or in OCI depending on the category (IFRS 9, para. 5.7.1). For an asset at FVTPL, the category itself points to profit or loss. Trap: Confusing FVTPL with FVOCI. Rule to remember: An asset at FVTPL records its fair value changes in profit or loss (IFRS 9, para. 5.7.1).","es":""},"common_error":{"fr":"","en":"Confusing FVTPL with FVOCI.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000097","standard_id":"IFRS9","concept_ids":["IFRS9.RECLASSIFICATION.ASSETS"],"dimension":"APPLICATION","context":"V1_QST.IFRS9.000097","tested_point":"QST.IFRS9.000097","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000011","section_id":"rule-trigger"},"references":["IFRS 9 §B4.4.1","IFRS 9 §4.4.1","IFRS 9 §5.6.1","IFRS 9 §B4.4.3"],"exercise":{"prompt":{"fr":"","en":"Banque Est manages a portfolio of bonds under a collection model. The market for some of these securities temporarily disappears, and management considers selling a few of them soon, without changing the portfolio's strategy. Should the portfolio be reclassified?","es":""},"explanation":{"fr":"","en":"The entity reclassifies financial assets if, and only if, the objective of its business model changes (IFRS 9, para. 4.4.1). Such changes are expected to be very infrequent, decided by senior management following significant and demonstrable changes; a change of intention for particular assets or the temporary disappearance of a market are not changes (IFRS 9, para. B4.4.3). Trap: Reclassifying on a mere intention to sell. Rule to remember: No change of business model, no reclassification (IFRS 9, para. 4.4.1).","es":""},"common_error":{"fr":"","en":"Reclassifying a portfolio on the basis of an intention to sell or a temporary market event.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Yes: an external event in the market requires reclassification from the date of the event.","es":""},"correct":false,"feedback":{"fr":"","en":"An external event is not enough: the change of model is decided by senior management following external or internal changes that are significant to the business and demonstrable to third parties (IFRS 9, para. B4.4.1). The temporary disappearance of a market is not one. Reclassification, if it takes place, applies from the reclassification date (IFRS 9, para. 5.6.1). Rule to remember: A change of model requires a decision and demonstrable facts (IFRS 9, para. B4.4.1).","es":""}},{"id":"B","text":{"fr":"","en":"Yes: management's intention to sell a few securities soon is enough to reclassify the portfolio.","es":""},"correct":false,"feedback":{"fr":"","en":"A change of intention for particular assets is not a change in business model (IFRS 9, para. B4.4.3). Reclassification requires a change in the objective of the model for managing the assets (IFRS 9, para. 4.4.1), expected to be very infrequent. Rule to remember: An intention to sell a few securities does not justify a reclassification (IFRS 9, para. B4.4.3).","es":""}},{"id":"C","text":{"fr":"","en":"No: the temporary disappearance of a market is not a change in business model.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"No, because the reclassification of financial assets does not exist after initial recognition.","es":""},"correct":false,"feedback":{"fr":"","en":"Reclassification of financial assets does exist: the entity reclassifies assets if, and only if, the objective of its business model changes (IFRS 9, para. 4.4.1). The 'no' conclusion of the case is right for another reason: here the model does not change. Rule to remember: A financial asset is reclassified when the business model changes (IFRS 9, para. 4.4.1).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000098","standard_id":"IFRS9","concept_ids":["IFRS9.RECLASSIFICATION.ASSETS"],"dimension":"CALCULATION","context":"V1_QST.IFRS9.000098","tested_point":"QST.IFRS9.000098","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000011","section_id":"rule-trigger"},"references":["IFRS 9 §5.6.1","IFRS 9"],"exercise":{"prompt":{"fr":"","en":"Following a change in business model, a portfolio of bonds of Fort SA, carried at amortised cost for {carrying_amount}, is reclassified. At the reclassification date, the fair value of the portfolio is {fair_value_at_reclass_date}. Calculate the difference between fair value and carrying amount. The accounting treatment of that difference is not asked.","es":""},"explanation":{"fr":"","en":"Approach: 1,045,000 − 1,000,000 = 45,000. Reclassification applies prospectively from the reclassification date, the first day of the first period following the change in business model (IFRS 9, para. 5.6.1); the difference measured here is that of this date, without prejudging its treatment. Trap: Swapping the two values and finding −45,000. Rule to remember: The reclassification difference compares fair value at the reclassification date with the carrying amount (IFRS 9, para. 5.6.1).","es":""},"common_error":{"fr":"","en":"Subtracting the wrong way round and getting a difference of the opposite sign.","es":""},"format":"CALCULATION","placeholders":[{"id":"carrying_amount","value":"1000000","unit":"EUR"},{"id":"fair_value_at_reclass_date","value":"1045000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Carrying amount before reclassification","es":""},"value":"1000000","unit":"EUR"},{"label":{"fr":"","en":"Fair value at the reclassification date","es":""},"value":"1045000","unit":"EUR"}],"steps":[{"id":"DIFFERENCE","label":{"fr":"","en":"Difference between fair value and carrying amount","es":""},"answer":45000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"DIFFERENCE","meaning":{"fr":"","en":"Difference between fair value and carrying amount","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value at the reclassification date","es":""},"value":1045000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Carrying amount before reclassification","es":""},"value":1000000,"unit":"EUR"}],"result":45000,"unit":"EUR"}],"rationale":{"fr":"","en":"The reclassification difference compares fair value at the reclassification date with the carrying amount (IFRS 9, para. 5.6.1).","es":""},"references":["REF.IFRS9.5.6.1","REF.IFRS9.A.AMORTISED"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000100","standard_id":"IFRS9","concept_ids":["IFRS9.RECLASSIFICATION.LIABILITIES"],"dimension":"RULE_KNOWLEDGE","context":"V1_VG.IFRS9.000009","tested_point":"VG.IFRS9.000009","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000011","section_id":"rule-liabilities"},"references":["IFRS 9 §4.4.2"],"exercise":{"prompt":{"fr":"","en":"When its funding strategy changes, the entity reclassifies its financial liabilities in the same way as its financial assets.","es":""},"explanation":{"fr":"","en":"Reclassification concerns financial assets, following a change in business model; financial liabilities are not reclassified (IFRS 9, para. 4.4.2). A change in funding strategy therefore does not alter the measurement category of a liability already recognised. Trap: Transposing the asset reclassification mechanism to liabilities. Rule to remember: Financial liabilities are not reclassified (IFRS 9, para. 4.4.2).","es":""},"common_error":{"fr":"","en":"Applying to financial liabilities the reclassification provided for assets.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000101","standard_id":"IFRS9","concept_ids":["IFRS9.RECLASSIFICATION.LIABILITIES"],"dimension":"APPLICATION","context":"V1_VG.IFRS9.000009","tested_point":"VG.IFRS9.000009","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000011","section_id":"rule-liabilities"},"references":["IFRS 9 §4.4.2"],"exercise":{"prompt":{"fr":"","en":"After a change in its funding policy, Nu SA now manages its debt with a short-term trading purpose. It wonders whether it must reclassify its borrowing, measured at amortised cost, to fair value through profit or loss. Which answer applies?","es":""},"explanation":{"fr":"","en":"Financial liabilities are not reclassified (IFRS 9, para. 4.4.2); reclassification concerns financial assets, when the objective of the business model changes (IFRS 9, para. 4.4.1). Nu SA's new management of its debt therefore does not change the measurement of its borrowing at amortised cost. Trap: Applying to a liability the business-model-change logic of assets. Rule to remember: A financial liability keeps its measurement category after initial recognition (IFRS 9, para. 4.4.2).","es":""},"common_error":{"fr":"","en":"Reclassifying a borrowing because the management of the debt has changed.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Yes: the liability is reclassified to FVTPL with retrospective effect from its issue.","es":""},"correct":false,"feedback":{"fr":"","en":"Reclassification does not exist for financial liabilities (IFRS 9, para. 4.4.2). Even for assets, it applies prospectively and not retrospectively (IFRS 9, para. 5.6.1). This answer therefore combines two errors. Rule to remember: No reclassification of liabilities, and a prospective effect for the reclassification of assets (IFRS 9, para. 4.4.2).","es":""}},{"id":"B","text":{"fr":"","en":"Yes: the change in business model requires the liability to be reclassified.","es":""},"correct":false,"feedback":{"fr":"","en":"The reclassification mechanism linked to a change in business model concerns financial assets (IFRS 9, para. 4.4.1). Financial liabilities are not reclassified (IFRS 9, para. 4.4.2), so the new management of the debt does not change its measurement. Rule to remember: A change in business model reclassifies assets, not liabilities (IFRS 9, para. 4.4.1).","es":""}},{"id":"C","text":{"fr":"","en":"No: financial liabilities are not reclassified.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Yes, as soon as the debt represents a significant amount for the entity.","es":""},"correct":false,"feedback":{"fr":"","en":"The size of the debt does not create an ability to reclassify: financial liabilities are not reclassified (IFRS 9, para. 4.4.2). A significant amount does not trigger a reclassification. Rule to remember: The amount of a debt opens no reclassification (IFRS 9, para. 4.4.2).","es":""}}]},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IFRS9.000102","standard_id":"IFRS9","concept_ids":["IFRS9.IMPAIRMENT.SCOPE"],"dimension":"RULE_KNOWLEDGE","context":"V1_VG.IFRS9.000010","tested_point":"VG.IFRS9.000010","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000012","section_id":"rule-scope"},"references":["IFRS 9 §5.5.1"],"exercise":{"prompt":{"fr":"","en":"The impairment model based on expected credit losses does not apply to equity instruments.","es":""},"explanation":{"fr":"","en":"A loss allowance for expected credit losses is recognised on assets measured at amortised cost or at FVOCI (debt securities), on trade receivables, lease receivables and contract assets; the model does not apply to equity instruments (IFRS 9, para. 5.5.1). Trap: Extending the model to shares held. Rule to remember: Equity instruments are outside the expected loss model (IFRS 9, para. 5.5.1).","es":""},"common_error":{"fr":"","en":"Applying the expected loss model to an investment in shares.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IFRS9.000103","standard_id":"IFRS9","concept_ids":["IFRS9.IMPAIRMENT.SCOPE"],"dimension":"RULE_KNOWLEDGE","context":"V1_VG.IFRS9.000010","tested_point":"VG.IFRS9.000010","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000012","section_id":"rule-scope"},"references":["IFRS 9 §5.5.1"],"exercise":{"prompt":{"fr":"","en":"Which of these instruments is not subject to the loss allowance for expected credit losses?","es":""},"explanation":{"fr":"","en":"A loss allowance for expected credit losses is recognised on assets measured at amortised cost or at FVOCI (debt securities), trade receivables, lease receivables and contract assets; it does not cover equity instruments (IFRS 9, para. 5.5.1). An investment in shares with the FVOCI election is an equity instrument: it is outside the model. Trap: Believing that the FVOCI election subjects shares to impairment. Rule to remember: Shares, even with the FVOCI election, are outside the expected loss model (IFRS 9, para. 5.5.1).","es":""},"common_error":{"fr":"","en":"Subjecting to impairment shares measured in OCI by election.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A loan measured at amortised cost.","es":""},"correct":false,"feedback":{"fr":"","en":"A loan at amortised cost is an asset subject to the loss allowance for expected credit losses (IFRS 9, para. 5.5.1). Equity instruments are the ones outside the model. Rule to remember: Assets at amortised cost are within the impairment model (IFRS 9, para. 5.5.1).","es":""}},{"id":"B","text":{"fr":"","en":"An investment in shares for which the entity has made the FVOCI election.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A debt security measured at FVOCI.","es":""},"correct":false,"feedback":{"fr":"","en":"A debt security at FVOCI remains subject to the model: the loss allowance is recognised in OCI without reducing the carrying amount of the security, and the impairment loss goes to profit or loss (IFRS 9, para. 5.5.2). FVOCI does not set impairment aside. Rule to remember: A debt security at FVOCI carries a loss allowance in OCI (IFRS 9, para. 5.5.2).","es":""}},{"id":"D","text":{"fr":"","en":"A trade receivable from a customer, with no significant financing component.","es":""},"correct":false,"feedback":{"fr":"","en":"Trade receivables are expressly among the items subject to the loss allowance (IFRS 9, para. 5.5.1), most often under the simplified approach. They are therefore not the instrument outside the model. Rule to remember: Trade receivables are within the impairment model (IFRS 9, para. 5.5.1).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000104","standard_id":"IFRS9","concept_ids":["IFRS9.IMPAIRMENT.LOW_CREDIT_RISK"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS9.000104","tested_point":"QST.IFRS9.000104","difficulty":"ADVANCED","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000012","section_id":"rule-low-credit-risk"},"references":["IFRS 9 §5.5.10"],"exercise":{"prompt":{"fr":"","en":"The entity is required to apply the low credit risk exemption as soon as an instrument has low credit risk at the reporting date.","es":""},"explanation":{"fr":"","en":"An entity may assume that credit risk has not increased significantly if the instrument has low credit risk at the reporting date (for example investment grade); it then measures the loss at 12 months. It is a practical expedient, not an obligation (IFRS 9, para. 5.5.10). Trap: Reading may as must. Rule to remember: The low credit risk exemption is optional (IFRS 9, para. 5.5.10).","es":""},"common_error":{"fr":"","en":"Treating as compulsory an exemption that the standard presents as optional.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000105","standard_id":"IFRS9","concept_ids":["IFRS9.IMPAIRMENT.LOW_CREDIT_RISK"],"dimension":"ANALYSIS","context":"V1_QST.IFRS9.000105","tested_point":"QST.IFRS9.000105","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000012","section_id":"rule-low-credit-risk"},"references":["IFRS 9 §5.5.10","IFRS 9 §B5.5.22","IFRS 9 §B5.5.24"],"exercise":{"prompt":{"fr":"","en":"A file presents four statements about the low credit risk exemption. Which one is wrong?","es":""},"explanation":{"fr":"","en":"The low credit risk exemption allows assuming no significant increase in risk and measuring the loss at 12 months; collateral is not enough by itself, leaving the low-risk category does not, in itself, lead to lifetime measurement, and it is a practical expedient, not an obligation (IFRS 9, paras. 5.5.10, B5.5.22 and B5.5.24). Professional judgement: assessing whether the risk is low at the reporting date. Trap: Concluding low risk from collateral. Rule to remember: Collateral does not demonstrate low credit risk (IFRS 9, paras. 5.5.10, B5.5.22 and B5.5.24).","es":""},"common_error":{"fr":"","en":"Concluding that credit risk is low merely because collateral covers the instrument.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The entity may assume that credit risk has not increased significantly if the instrument has low risk at the reporting date.","es":""},"correct":false,"feedback":{"fr":"","en":"This statement is correct: it is the very scope of the exemption, which leads to measuring the loss at 12 months (IFRS 9, para. 5.5.10). The wrong statement is the one that draws a conclusion from the mere presence of collateral. Rule to remember: The exemption rests on a low risk observed at the reporting date (IFRS 9, para. 5.5.10).","es":""}},{"id":"B","text":{"fr":"","en":"The exemption is a practical expedient, not an obligation.","es":""},"correct":false,"feedback":{"fr":"","en":"This statement is correct: the entity may apply the exemption but is not required to (IFRS 9, para. 5.5.10). The wrong sentence is the one that gives collateral an effect it does not have. Rule to remember: The low-risk exemption is optional (IFRS 9, para. 5.5.10).","es":""}},{"id":"C","text":{"fr":"","en":"Leaving the low-risk category does not, in itself, lead to lifetime measurement.","es":""},"correct":false,"feedback":{"fr":"","en":"This statement is correct: leaving the low-risk category does not, in itself, lead to lifetime measurement, which depends on the assessment of the significant increase in risk (IFRS 9, para. 5.5.10). It is not the wrong statement. Rule to remember: Leaving low risk does not by itself imply lifetime (IFRS 9, para. 5.5.10).","es":""}},{"id":"D","text":{"fr":"","en":"Collateral attached to the instrument allows the conclusion that credit risk is low.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000106","standard_id":"IFRS9","concept_ids":["IFRS9.IMPAIRMENT.CURE"],"dimension":"APPLICATION","context":"V1_VG.IFRS9.000011","tested_point":"VG.IFRS9.000011","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000014","section_id":"rule-cure"},"references":["IFRS 9 §5.5.7"],"exercise":{"prompt":{"fr":"","en":"At 31 December N-1, Ion SA measured the loss allowance of a loan on a lifetime basis, after a significant increase in credit risk. At 31 December N, the condition of a significant increase is no longer met. How should the loss allowance be measured at 31 December N?","es":""},"explanation":{"fr":"","en":"If, at a previous reporting date, the loss allowance was measured on a lifetime basis but the condition of a significant increase is no longer met at the reporting date, it is measured again at the amount of 12-month losses (IFRS 9, para. 5.5.7). The adjustment is recognised in profit or loss (IFRS 9, para. 5.5.8). Trap: Keeping lifetime measurement out of caution. Rule to remember: When the significant increase disappears, the loss allowance returns to 12 months (IFRS 9, para. 5.5.7).","es":""},"common_error":{"fr":"","en":"Keeping lifetime measurement after the significant increase in risk has disappeared.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Again at the amount of the 12-month expected credit losses.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"On a lifetime basis, until the loan is repaid.","es":""},"correct":false,"feedback":{"fr":"","en":"Lifetime measurement is not final: if the condition of a significant increase in risk is no longer met at the reporting date, the loss allowance is again measured at 12 months (IFRS 9, para. 5.5.7). Repayment of the loan is not the condition for the return. Rule to remember: Lifetime measurement is reversible when the significant increase disappears (IFRS 9, para. 5.5.7).","es":""}},{"id":"C","text":{"fr":"","en":"At 12 months, but restating the loss allowance of year N-1.","es":""},"correct":false,"feedback":{"fr":"","en":"The return to 12-month measurement applies at the reporting date at which the condition is no longer met; it does not lead to restating the previous year's loss allowance (IFRS 9, para. 5.5.7). The adjusting amount is recognised in profit or loss in the period (IFRS 9, para. 5.5.8). Rule to remember: The return to 12 months does not restate past periods (IFRS 9, para. 5.5.7).","es":""}},{"id":"D","text":{"fr":"","en":"On a lifetime basis, at least until the end of year N+1, to confirm the improvement.","es":""},"correct":false,"feedback":{"fr":"","en":"The applicable requirement provides no probation period: as soon as the condition of a significant increase is no longer met at the reporting date, measurement returns to 12 months (IFRS 9, para. 5.5.7). Adding a confirmation delay amounts to a rule that the text does not contain. Rule to remember: The return to 12 months follows the reporting date at which the condition is no longer met (IFRS 9, para. 5.5.7).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000108","standard_id":"IFRS9","concept_ids":["IFRS9.IMPAIRMENT.PRESENTATION"],"dimension":"CALCULATION","context":"V1_QST.IFRS9.000108","tested_point":"QST.IFRS9.000108","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000014","section_id":"rule-presentation"},"references":["IFRS 9 §5.5.8","IFRS 9 §5.5.2"],"exercise":{"prompt":{"fr":"","en":"The loss allowance of a loan portfolio of Aube SA is {opening_allowance} at the start of the year. Over the year, the charge is {charge} and reversals and write-offs amount to {reversals_and_write_offs}. Calculate the closing loss allowance (reconciliation of movements).","es":""},"explanation":{"fr":"","en":"Approach: 40,000 + 25,000 − 12,000 = 53,000. The amount of impairment losses or reversals needed to adjust the loss allowance at the reporting date is recognised in profit or loss (IFRS 9, para. 5.5.8); the reconciliation starts from the opening balance, adds the charge and deducts reversals and write-offs. Trap: Adding reversals and write-offs instead of deducting them (77,000). Rule to remember: Closing allowance = opening + charge − reversals and write-offs (IFRS 9, para. 5.5.8).","es":""},"common_error":{"fr":"","en":"Adding reversals and write-offs instead of deducting them.","es":""},"format":"CALCULATION","placeholders":[{"id":"opening_allowance","value":"40000","unit":"EUR"},{"id":"charge","value":"25000","unit":"EUR"},{"id":"reversals_and_write_offs","value":"12000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Opening loss allowance","es":""},"value":"40000","unit":"EUR"},{"label":{"fr":"","en":"Charge for the year","es":""},"value":"25000","unit":"EUR"},{"label":{"fr":"","en":"Reversals and write-offs for the year","es":""},"value":"12000","unit":"EUR"}],"steps":[{"id":"CLOSING_ALLOWANCE","label":{"fr":"","en":"Closing loss allowance","es":""},"answer":53000,"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":40000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Charge for the year","es":""},"value":25000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Reversals and write-offs for the year","es":""},"value":12000,"unit":"EUR"}],"result":53000,"unit":"EUR"}],"rationale":{"fr":"","en":"Closing allowance = opening + charge − reversals and write-offs (IFRS 9, para. 5.5.8).","es":""},"references":["REF.IFRS9.5.5.8","REF.IFRS9.5.5.2"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000109","standard_id":"IFRS9","concept_ids":["IFRS9.IMPAIRMENT.PRESENTATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS9.000109","tested_point":"QST.IFRS9.000109","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000014","section_id":"rule-presentation"},"references":["IFRS 9 §5.5.2","IFRS 9 §5.5.8"],"exercise":{"prompt":{"fr":"","en":"For a debt security measured at FVOCI, how is the loss allowance for expected credit losses presented?","es":""},"explanation":{"fr":"","en":"For a debt security at FVOCI, the loss allowance is recognised in OCI without reducing the carrying amount of the asset, which stays at fair value, and the impairment loss goes to profit or loss (IFRS 9, para. 5.5.2). The amount needed to adjust the loss allowance is recognised in profit or loss (IFRS 9, para. 5.5.8). Effect on the financial statements: profit or loss bears the charge, OCI the counterpart, the statement of financial position stays at fair value. Trap: Deducting the loss allowance from the asset. Rule to remember: For FVOCI, the loss allowance goes through OCI and not through the carrying amount (IFRS 9, para. 5.5.2).","es":""},"common_error":{"fr":"","en":"Deducting the loss allowance from the carrying amount of a security already measured at fair value.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"In OCI, without reducing the carrying amount of the security; the impairment loss goes to profit or loss.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"In equity, with no effect on the profit or loss of the year.","es":""},"correct":false,"feedback":{"fr":"","en":"The impairment loss of a security at FVOCI is recognised in profit or loss (IFRS 9, para. 5.5.2). A presentation with no effect on profit or loss would remove the impairment charge, whereas the expected loss model requires it to be recognised (IFRS 9, para. 5.5.8). Rule to remember: The impairment loss of a security at FVOCI affects profit or loss (IFRS 9, para. 5.5.2).","es":""}},{"id":"C","text":{"fr":"","en":"In profit or loss, with a provision in liabilities as the counterpart.","es":""},"correct":false,"feedback":{"fr":"","en":"The impairment charge does go to profit or loss (IFRS 9, para. 5.5.8), but the counterpart is not a provision in liabilities: the loss allowance of a security at FVOCI is recognised in OCI (IFRS 9, para. 5.5.2). This answer errs on the counterpart. Rule to remember: The counterpart of the impairment of a security at FVOCI is in OCI (IFRS 9, para. 5.5.2).","es":""}},{"id":"D","text":{"fr":"","en":"As a deduction from the carrying amount of the security, as for an asset measured at amortised cost.","es":""},"correct":false,"feedback":{"fr":"","en":"For a security at FVOCI, the carrying amount stays at fair value: the loss allowance is not deducted from the asset but recognised in OCI (IFRS 9, para. 5.5.2). Direct deduction corresponds to assets at amortised cost. Rule to remember: A security at FVOCI keeps its fair value on the balance sheet despite the loss allowance (IFRS 9, para. 5.5.2).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000110","standard_id":"IFRS9","concept_ids":["IFRS9.IMPAIRMENT.PROVISION_MATRIX"],"dimension":"CALCULATION","context":"V1_QST.IFRS9.000110","tested_point":"QST.IFRS9.000110","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000015","section_id":"rule-matrix"},"references":["IFRS 9 §5.5.15","IFRS 9 §B5.5.35"],"exercise":{"prompt":{"fr":"","en":"Teta SA applies a provision matrix to its trade receivables without a significant financing component. The loss rates by ageing bucket, established from history and adjusted for forward-looking information, are given by the case. Balances and rates: not yet due {balance_not_due} at {rate_not_due}; 1 to 30 days {balance_1_30} at {rate_1_30}; 31 to 90 days {balance_31_90} at {rate_31_90}; over 90 days {balance_over_90} at {rate_over_90}. Calculate the loss allowance of the 31 to 90 days bucket, then the total loss allowance.","es":""},"explanation":{"fr":"","en":"Approach: 600,000 × 0.5% = 3,000; 200,000 × 2% = 4,000; 100,000 × 10% = 10,000; 50,000 × 40% = 20,000; total 37,000. For these receivables, the loss allowance equals lifetime expected losses, and the matrix applies loss rates by ageing bucket (IFRS 9, paras. 5.5.15 and B5.5.35). Case convention: the rates are data. Trap: Applying a single rate to the total balance. Rule to remember: Loss allowance = sum of the bucket balances multiplied by their loss rates (IFRS 9, para. 5.5.15).","es":""},"common_error":{"fr":"","en":"Applying a single rate to the receivables as a whole instead of a rate per bucket.","es":""},"format":"CALCULATION","placeholders":[{"id":"balance_not_due","value":"600000","unit":"EUR"},{"id":"rate_not_due","value":"0.5","unit":"PERCENT"},{"id":"balance_1_30","value":"200000","unit":"EUR"},{"id":"rate_1_30","value":"2","unit":"PERCENT"},{"id":"balance_31_90","value":"100000","unit":"EUR"},{"id":"rate_31_90","value":"10","unit":"PERCENT"},{"id":"balance_over_90","value":"50000","unit":"EUR"},{"id":"rate_over_90","value":"40","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Receivables not yet due","es":""},"value":"600000","unit":"EUR"},{"label":{"fr":"","en":"Loss rate, not yet due","es":""},"value":"0.5","unit":"PERCENT"},{"label":{"fr":"","en":"Receivables 1 to 30 days past due","es":""},"value":"200000","unit":"EUR"},{"label":{"fr":"","en":"Loss rate, 1 to 30 days","es":""},"value":"2","unit":"PERCENT"},{"label":{"fr":"","en":"Receivables 31 to 90 days past due","es":""},"value":"100000","unit":"EUR"},{"label":{"fr":"","en":"Loss rate, 31 to 90 days","es":""},"value":"10","unit":"PERCENT"},{"label":{"fr":"","en":"Receivables more than 90 days past due","es":""},"value":"50000","unit":"EUR"},{"label":{"fr":"","en":"Loss rate, over 90 days","es":""},"value":"40","unit":"PERCENT"}],"steps":[{"id":"ALLOWANCE_31_90","label":{"fr":"","en":"Loss allowance of the 31 to 90 days bucket","es":""},"answer":10000,"tolerance":0,"unit":"EUR"},{"id":"TOTAL_ALLOWANCE","label":{"fr":"","en":"Total loss allowance","es":""},"answer":37000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"ALLOWANCE_31_90","meaning":{"fr":"","en":"Loss allowance of the 31 to 90 days bucket","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Receivables 31 to 90 days past due","es":""},"value":100000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Loss rate, 31 to 90 days","es":""},"value":10,"unit":"PERCENT"}],"result":10000,"unit":"EUR"}],"rationale":{"fr":"","en":"Loss allowance = sum of the bucket balances multiplied by their loss rates (IFRS 9, para. 5.5.15).","es":""},"references":["REF.IFRS9.5.5.15","REF.IFRS9.B5.5.35"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000111","standard_id":"IFRS9","concept_ids":["IFRS9.IMPAIRMENT.PROVISION_MATRIX"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS9.000111","tested_point":"QST.IFRS9.000111","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000015","section_id":"rule-matrix"},"references":["IFRS 9 §B5.5.35","IFRS 9 §5.5.15"],"exercise":{"prompt":{"fr":"","en":"How are the loss rates of a provision matrix established?","es":""},"explanation":{"fr":"","en":"For trade receivables without a significant financing component, the loss allowance always equals lifetime expected losses, without stages (IFRS 9, para. 5.5.15). The provision matrix applies loss rates by ageing bucket, established from the entity's default history and adjusted for forward-looking information (IFRS 9, para. B5.5.35). The method is not mandatory. Trap: Using a raw industry rate or a single rate. Rule to remember: Matrix rates come from the entity's history, by bucket, adjusted for forecasts (IFRS 9, para. B5.5.35).","es":""},"common_error":{"fr":"","en":"Using raw industry rates instead of the entity's own history.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"From the loss rate of the oldest bucket, applied to the whole portfolio.","es":""},"correct":false,"feedback":{"fr":"","en":"A provision matrix applies different rates by ageing bucket; taking the oldest bucket's rate for the whole portfolio would overstate the loss allowance and would not reflect each bucket's history (IFRS 9). Rule to remember: One rate per ageing bucket, not a single rate (IFRS 9).","es":""}},{"id":"B","text":{"fr":"","en":"From rates published by a market authority for the industry, with no entity-specific adjustment.","es":""},"correct":false,"feedback":{"fr":"","en":"The matrix relies on the entity's own default history, adjusted for forward-looking information, and not on industry rates taken over without adjustment (IFRS 9). Separate groupings are justified if the history shows significantly different losses across segments. Rule to remember: The matrix rates reflect the entity's own history (IFRS 9).","es":""}},{"id":"C","text":{"fr":"","en":"From the expected future losses, with no reference to the default history.","es":""},"correct":false,"feedback":{"fr":"","en":"The matrix starts from the entity's default history, which it then adjusts for forward-looking information; leaving the history aside would remove the starting point of the method (IFRS 9). The estimate remains unbiased and probability-weighted. Rule to remember: History is the starting point, forecasts adjust it (IFRS 9).","es":""}},{"id":"D","text":{"fr":"","en":"From the entity's default history by bucket, adjusted for forecasts.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000113","standard_id":"IFRS9","concept_ids":["IFRS9.IMPAIRMENT.ECL_MEASUREMENT"],"dimension":"CALCULATION","context":"V1_QST.IFRS9.000113","tested_point":"QST.IFRS9.000113","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000013","section_id":"rule-measure"},"references":["IFRS 9 §5.5.17"],"exercise":{"prompt":{"fr":"","en":"Mer SA estimates the expected credit loss of a loan portfolio under three economic scenarios. The losses, already expressed in present value, and the probabilities are case data: stable scenario {loss_scenario_1} at {probability_scenario_1}; slowdown {loss_scenario_2} at {probability_scenario_2}; recession {loss_scenario_3} at {probability_scenario_3}. Calculate the probability-weighted expected credit loss.","es":""},"explanation":{"fr":"","en":"Approach: 20,000 × 60% = 12,000; 80,000 × 30% = 24,000; 200,000 × 10% = 20,000; total 56,000. The expected credit loss reflects an unbiased, probability-weighted amount determined by evaluating a range of possible outcomes (IFRS 9, para. 5.5.17). Case convention: probabilities and losses per scenario are data. Trap: Keeping the most likely scenario (20,000). Rule to remember: The expected loss is the sum of each scenario's loss weighted by its probability (IFRS 9, para. 5.5.17).","es":""},"common_error":{"fr":"","en":"Keeping the loss of the most likely scenario instead of the weighted average.","es":""},"format":"CALCULATION","placeholders":[{"id":"loss_scenario_1","value":"20000","unit":"EUR"},{"id":"probability_scenario_1","value":"60","unit":"PERCENT"},{"id":"loss_scenario_2","value":"80000","unit":"EUR"},{"id":"probability_scenario_2","value":"30","unit":"PERCENT"},{"id":"loss_scenario_3","value":"200000","unit":"EUR"},{"id":"probability_scenario_3","value":"10","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Loss, stable scenario","es":""},"value":"20000","unit":"EUR"},{"label":{"fr":"","en":"Probability, stable scenario","es":""},"value":"60","unit":"PERCENT"},{"label":{"fr":"","en":"Loss, slowdown scenario","es":""},"value":"80000","unit":"EUR"},{"label":{"fr":"","en":"Probability, slowdown scenario","es":""},"value":"30","unit":"PERCENT"},{"label":{"fr":"","en":"Loss, recession scenario","es":""},"value":"200000","unit":"EUR"},{"label":{"fr":"","en":"Probability, recession scenario","es":""},"value":"10","unit":"PERCENT"}],"steps":[{"id":"EXPECTED_CREDIT_LOSS","label":{"fr":"","en":"Probability-weighted expected credit loss","es":""},"answer":56000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"EXPECTED_CREDIT_LOSS","meaning":{"fr":"","en":"Probability-weighted expected credit loss","es":""},"expression":"(a * b) + (c * d) + a","variables":[{"symbol":"a","meaning":{"fr":"","en":"Loss, stable scenario","es":""},"value":20000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Probability, stable scenario","es":""},"value":60,"unit":"PERCENT"},{"symbol":"c","meaning":{"fr":"","en":"Loss, slowdown scenario","es":""},"value":80000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Probability, slowdown scenario","es":""},"value":30,"unit":"PERCENT"}],"result":56000,"unit":"EUR"}],"rationale":{"fr":"","en":"The expected loss is the sum of each scenario's loss weighted by its probability (IFRS 9, para. 5.5.17).","es":""},"references":["REF.IFRS9.5.5.17"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000114","standard_id":"IFRS9","concept_ids":["IFRS9.IMPAIRMENT.ECL_MEASUREMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS9.000114","tested_point":"QST.IFRS9.000114","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000013","section_id":"rule-measure"},"references":["IFRS 9 §5.5.17"],"exercise":{"prompt":{"fr":"","en":"What must the estimate of an expected credit loss reflect?","es":""},"explanation":{"fr":"","en":"The expected credit loss is estimated so as to reflect an unbiased, probability-weighted amount determined by evaluating a range of possible outcomes, the time value of money and reasonable and supportable information, available without undue cost or effort, about past events, current conditions and forecasts of economic conditions (IFRS 9, para. 5.5.17). Effect: the loss allowance and the charge rest on this estimate. Trap: Keeping a single scenario, optimistic or prudent. Rule to remember: The expected loss is an unbiased, probability-weighted amount (IFRS 9, para. 5.5.17).","es":""},"common_error":{"fr":"","en":"Estimating the expected loss on a single scenario, likely or prudent.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The most likely scenario, retained to simplify the estimate.","es":""},"correct":false,"feedback":{"fr":"","en":"Keeping the most likely scenario does not weight outcomes by their probability: the estimate must reflect a probability-weighted amount determined by evaluating a range of possible outcomes (IFRS 9, para. 5.5.17). A single scenario may understate less likely adverse scenarios. Rule to remember: The expected loss weights the whole set of scenarios, not the most likely one (IFRS 9, para. 5.5.17).","es":""}},{"id":"B","text":{"fr":"","en":"An unbiased, probability-weighted amount, evaluated over a range of possible outcomes, with the time value of money.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The average loss observed over the last year, with no economic forecast.","es":""},"correct":false,"feedback":{"fr":"","en":"The estimate relies on reasonable and supportable information about past events, current conditions and forecasts of future economic conditions (IFRS 9, para. 5.5.17). A historical average with no forecast leaves out the forward-looking dimension of the expected loss. Rule to remember: The expected loss includes economic forecasts, in addition to history (IFRS 9, para. 5.5.17).","es":""}},{"id":"D","text":{"fr":"","en":"The most adverse scenario, out of prudence.","es":""},"correct":false,"feedback":{"fr":"","en":"The expected loss is an unbiased amount; keeping the worst scenario out of prudence would introduce an upward bias, contrary to the requirement of an unbiased, probability-weighted estimate (IFRS 9, para. 5.5.17). Rule to remember: Prudence does not justify biasing the estimate of an expected loss (IFRS 9, para. 5.5.17).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000116","standard_id":"IFRS9","concept_ids":["IFRS9.IMPAIRMENT.MAXIMUM_PERIOD"],"dimension":"APPLICATION","context":"V1_QST.IFRS9.000116","tested_point":"QST.IFRS9.000116","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000013","section_id":"rule-max-period"},"references":["IFRS 9 §5.5.19"],"exercise":{"prompt":{"fr":"","en":"Ciel SA has granted a customer a 3-year loan, with an option, at the borrower's discretion, to extend the contract by 2 years. In practice, Ciel renews loans of this type for 8 years. Over what maximum period should the expected credit losses be measured?","es":""},"explanation":{"fr":"","en":"The maximum period to consider when measuring expected losses is the maximum contractual period, including the borrower's extension options, over which the entity is exposed to credit risk; it is not a longer period even if commercial practice would justify it (IFRS 9, para. 5.5.19). Here: 3 years + 2 years of extension at the borrower's discretion = 5 years; the 8 years of practice are set aside. Effect: the measurement horizon bounds the lifetime loss allowance. Trap: Following commercial practice rather than the contract. Rule to remember: The maximum period is contractual, borrower extensions included (IFRS 9, para. 5.5.19).","es":""},"common_error":{"fr":"","en":"Using the entity's renewal practice instead of the maximum contractual period.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Three years: the borrower's extension options are not taken into account.","es":""},"correct":false,"feedback":{"fr":"","en":"The maximum period includes extension options at the borrower's initiative: the entity remains exposed to credit risk during that additional period (IFRS 9, para. 5.5.19). Stopping at the initial three-year term would understate the measurement horizon. Rule to remember: The borrower's extension options lengthen the maximum period (IFRS 9, para. 5.5.19).","es":""}},{"id":"B","text":{"fr":"","en":"Eight years: the entity's commercial practice justifies a longer period.","es":""},"correct":false,"feedback":{"fr":"","en":"The maximum period is the maximum contractual period, not a longer period, even if the entity's commercial practice would justify it (IFRS 9, para. 5.5.19). The usual eight years of renewals are not contractual. Rule to remember: Commercial practice does not lengthen the maximum measurement period (IFRS 9, para. 5.5.19).","es":""}},{"id":"C","text":{"fr":"","en":"Five years: the maximum contractual period, including the borrower's extension options.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Two years: the extension period exposes the entity to a new credit risk.","es":""},"correct":false,"feedback":{"fr":"","en":"The extension period is added to the initial period; it does not replace it. The entity is exposed to credit risk throughout the maximum contractual period, that is three plus two years (IFRS 9, para. 5.5.19). Rule to remember: The maximum period combines the initial term and the extensions at the borrower's initiative (IFRS 9, para. 5.5.19).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000117","standard_id":"IFRS9","concept_ids":["IFRS9.IMPAIRMENT.POCI"],"dimension":"APPLICATION","context":"V1_QST.IFRS9.000117","tested_point":"QST.IFRS9.000117","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000014","section_id":"rule-poci"},"references":["IFRS 9 §5.5.13","IFRS 9 §5.4.1"],"exercise":{"prompt":{"fr":"","en":"Dune SA acquires a loan that is already credit-impaired at the acquisition date (purchased or originated credit-impaired asset). How does it treat the effect of credit risk on this loan?","es":""},"explanation":{"fr":"","en":"For assets credit-impaired from origination, a credit-adjusted effective interest rate is used (IFRS 9, para. 5.4.1), and the general model does not apply to these assets; the cumulative changes in lifetime expected loss since initial recognition are recognised in the loss allowance (IFRS 9, para. 5.5.13). Effect: the loan enters the balance sheet net of the initial risk, and interest income follows the adjusted rate. Trap: Applying the three stages of the general model. Rule to remember: Asset credit-impaired from origination: credit-adjusted rate and cumulative changes in losses (IFRS 9, para. 5.5.13).","es":""},"common_error":{"fr":"","en":"Applying the stages of the general impairment model to an asset credit-impaired from origination.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It applies the original effective interest rate to the gross amount and takes no account of changes in expected losses.","es":""},"correct":false,"feedback":{"fr":"","en":"For an asset credit-impaired from origination, the effective interest rate is adjusted for credit risk (IFRS 9, para. 5.4.1), and the cumulative changes in expected loss since initial recognition are recognised in the loss allowance (IFRS 9, para. 5.5.13). Ignoring those changes would leave out the evolution of risk after acquisition. Rule to remember: The credit-adjusted rate and the cumulative changes in losses go together (IFRS 9, para. 5.4.1).","es":""}},{"id":"B","text":{"fr":"","en":"It applies a credit-adjusted effective interest rate and recognises in the loss allowance the cumulative changes in expected losses.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It recognises a loss allowance equal to 12-month losses from acquisition, as for a stage 1 loan.","es":""},"correct":false,"feedback":{"fr":"","en":"The general three-stage model does not apply to an asset that is credit-impaired on acquisition: credit risk is reflected in the credit-adjusted effective interest rate, and the cumulative changes in expected loss since initial recognition are recognised in the loss allowance (IFRS 9, para. 5.5.13). A 12-month measurement at acquisition would double-count the risk. Rule to remember: An asset credit-impaired from origination does not follow the three-stage model (IFRS 9, para. 5.5.13).","es":""}},{"id":"D","text":{"fr":"","en":"It recognises at acquisition a loss allowance equal to lifetime losses, in addition to the credit-adjusted effective interest rate.","es":""},"correct":false,"feedback":{"fr":"","en":"The credit-adjusted effective interest rate already takes the initial expected losses into account (IFRS 9, Appendix A); recognising in addition a loss allowance equal to the whole of the lifetime losses would count the same risk twice. The cumulative changes since initial recognition come on top (IFRS 9, para. 5.5.13). Rule to remember: Initial losses sit in the adjusted rate, not in the loss allowance (IFRS 9, para. 5.5.13).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000118","standard_id":"IFRS9","concept_ids":["IFRS9.EMBEDDED.FINANCIAL_ASSET_HOST"],"dimension":"RULE_KNOWLEDGE","context":"V1_VG.IFRS9.000012","tested_point":"VG.IFRS9.000012","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000016","section_id":"rule-asset-host"},"references":["IFRS 9 §4.3.2"],"exercise":{"prompt":{"fr":"","en":"A derivative embedded in a host contract that is a financial asset within the scope of IFRS 9 is not separated.","es":""},"explanation":{"fr":"","en":"If the host contract is a financial asset within the scope of the standard, the embedded derivative is not separated: the classification criteria apply to the whole hybrid financial asset (IFRS 9, para. 4.3.2). The three-condition separation concerns other hosts. Trap: Separating the embedded derivative of a financial asset host. Rule to remember: A financial asset host rules out separation of the embedded derivative (IFRS 9, para. 4.3.2).","es":""},"common_error":{"fr":"","en":"Separating the embedded derivative from a financial asset host.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000119","standard_id":"IFRS9","concept_ids":["IFRS9.EMBEDDED.FINANCIAL_ASSET_HOST"],"dimension":"APPLICATION","context":"V1_VG.IFRS9.000012","tested_point":"VG.IFRS9.000012","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000016","section_id":"rule-asset-host"},"references":["IFRS 9 §4.3.2","IFRS 9 §B4.1.7A"],"exercise":{"prompt":{"fr":"","en":"Océan SA holds as an investment a bond convertible into shares of the issuer. How does it treat the conversion derivative embedded in this financial asset?","es":""},"explanation":{"fr":"","en":"If the host contract is a financial asset within the scope of the standard, the embedded derivative is not separated: the classification criteria apply to the whole hybrid asset (IFRS 9, para. 4.3.2). Here the conversion into shares exposes the cash flows to equity prices, which is not a feature of a basic lending arrangement: the cash flows are not SPPI (IFRS 9, para. B4.1.7A), and the whole hybrid asset is measured at FVTPL. Trap: Isolating the conversion to preserve amortised cost. Rule to remember: A hybrid asset is classified as a whole; a conversion into shares makes the SPPI test fail (IFRS 9, para. 4.3.2).","es":""},"common_error":{"fr":"","en":"Isolating the conversion to classify the host at amortised cost.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It separates the derivative to measure it at FVTPL and measures the host at FVOCI.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer combines two errors: it separates a derivative that must not be separated with a financial asset host (IFRS 9, para. 4.3.2), and it picks for the host a category unrelated to the business model or to the cash flows of the hybrid asset. Rule to remember: The hybrid asset is classified as a whole, according to its business model and cash flows (IFRS 9, para. 4.3.2).","es":""}},{"id":"B","text":{"fr":"","en":"It separates the conversion derivative and classifies the host bond at amortised cost.","es":""},"correct":false,"feedback":{"fr":"","en":"Separation does not apply when the host is a financial asset within the scope: the whole hybrid asset is classified (IFRS 9, para. 4.3.2). Separating the derivative to save the host's amortised cost contradicts this rule. Rule to remember: No separation with a financial asset host (IFRS 9, para. 4.3.2).","es":""}},{"id":"C","text":{"fr":"","en":"It does not separate the derivative and classifies the whole at amortised cost, the conversion being an option like another.","es":""},"correct":false,"feedback":{"fr":"","en":"Non-separation is right, but classification at amortised cost ignores the cash flow test: clauses that expose the cash flows to equity prices do not give rise to SPPI cash flows (IFRS 9, para. B4.1.7A). The hybrid asset therefore cannot be at amortised cost. Rule to remember: Without separation, the SPPI test applies to the whole hybrid asset (IFRS 9, para. 4.3.2).","es":""}},{"id":"D","text":{"fr":"","en":"It does not separate the derivative: the hybrid asset is classified as a whole, and exposure to equity prices rules out SPPI cash flows.","es":""},"correct":true}]},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IFRS9.000120","standard_id":"IFRS9","concept_ids":["IFRS9.EMBEDDED.FINANCIAL_ASSET_HOST"],"dimension":"ANALYSIS","context":"V1_QST.IFRS9.000120","tested_point":"QST.IFRS9.000120","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000016","section_id":"rule-asset-host"},"references":["IFRS 9 §4.3.2"],"exercise":{"prompt":{"fr":"","en":"A trainee summarises the treatment of embedded derivatives in a financial asset host. Which sentence is wrong?","es":""},"explanation":{"fr":"","en":"If the host contract is a financial asset within the scope of the standard, the embedded derivative is not separated and the classification criteria apply to the whole hybrid asset (IFRS 9, para. 4.3.2). The sentence providing for a separation and then measurement of the derivative at FVTPL is therefore false. Trap: Transposing to a financial asset host the separation logic of other hosts. Rule to remember: With a financial asset host, the embedded derivative is not separated (IFRS 9, para. 4.3.2).","es":""},"common_error":{"fr":"","en":"Separating embedded derivatives without looking at the nature of the host.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The contractual cash flow test applies to the hybrid asset taken as a whole.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: since the classification criteria apply to the whole hybrid asset, the cash flow test covers the whole (IFRS 9, para. 4.3.2). The false sentence is the one that provides for a separation. Rule to remember: The SPPI test applies to the whole hybrid asset (IFRS 9, para. 4.3.2).","es":""}},{"id":"B","text":{"fr":"","en":"The classification criteria apply to the whole hybrid financial asset.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: it is the consequence of the non-separation rule with a financial asset host (IFRS 9, para. 4.3.2). The wrong sentence is the one that separates the derivative anyway. Rule to remember: Classification concerns the whole hybrid asset (IFRS 9, para. 4.3.2).","es":""}},{"id":"C","text":{"fr":"","en":"The embedded derivative is separated from the host asset and then measured at fair value through profit or loss.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The embedded derivative is not separated when the host is a financial asset within the scope of the standard.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: it states the very rule for a financial asset host (IFRS 9, para. 4.3.2). It is not the one to spot as false. Rule to remember: Financial asset host, derivative not separated (IFRS 9, para. 4.3.2).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000121","standard_id":"IFRS9","concept_ids":["IFRS9.EMBEDDED.WHOLE_FVTPL"],"dimension":"APPLICATION","context":"V1_QST.IFRS9.000121","tested_point":"QST.IFRS9.000121","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000016","section_id":"rule-whole"},"references":["IFRS 9 §4.3.5"],"exercise":{"prompt":{"fr":"","en":"Thalès SA has issued a hybrid contract whose host is not a financial asset. It contains a prepayment option exercisable at an amount close to amortised cost. Thalès considers designating the whole hybrid contract at FVTPL. What can be said of this designation option?","es":""},"explanation":{"fr":"","en":"If the host is not a financial asset, the entity may designate the whole hybrid contract at FVTPL; that option is not available if the embedded derivative does not significantly modify the contract's cash flows or if the prohibition on separating is clear, for example a prepayment option on a loan at an amount close to amortised cost (IFRS 9, para. 4.3.5). Professional judgement: assessing whether the derivative significantly modifies the cash flows. Trap: Reading a non-financial host as an automatic green light for designation. Rule to remember: A clear prohibition on separating closes the option to designate the hybrid at FVTPL (IFRS 9, para. 4.3.5).","es":""},"common_error":{"fr":"","en":"Considering that a non-financial host opens designation of the whole hybrid at FVTPL without condition.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is not available: the prohibition on separating is clear for a prepayment option at an amount close to amortised cost.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"It is available, because the host is not a financial asset.","es":""},"correct":false,"feedback":{"fr":"","en":"A host that is not a financial asset in principle opens the option to designate the whole contract at FVTPL, but that option is not available if the embedded derivative does not significantly modify the cash flows or if the prohibition on separating is clear (IFRS 9, para. 4.3.5). The prepayment option at an amount close to amortised cost is the example. Rule to remember: Designation of the hybrid is ruled out when the prohibition on separating is clear (IFRS 9, para. 4.3.5).","es":""}},{"id":"C","text":{"fr":"","en":"It is not available, because designation at FVTPL concerns financial assets and not hybrid contracts.","es":""},"correct":false,"feedback":{"fr":"","en":"For a host that is not a financial asset, the standard in principle allows designating the whole hybrid contract at FVTPL (IFRS 9, para. 4.3.5). The reason for unavailability here lies elsewhere: the prohibition on separating is clear. This answer reaches the right conclusion for the wrong reason. Rule to remember: Unavailability comes from the clear prohibition on separating, not from the type of contract (IFRS 9, para. 4.3.5).","es":""}},{"id":"D","text":{"fr":"","en":"It is available, but the designation can be revoked if the derivative becomes significant.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer wrongly holds that the option is available, and adds a revocability that the rule does not provide: designation of the hybrid is not open when the prohibition on separating is clear (IFRS 9, para. 4.3.5). The prepayment option at an amount close to amortised cost fits that case. Rule to remember: No designation of the hybrid when separation is clearly prohibited (IFRS 9, para. 4.3.5).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000122","standard_id":"IFRS9","concept_ids":["IFRS9.INTERACTIONS.IAS32"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS9.000122","tested_point":"QST.IFRS9.000122","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000008","section_id":"rule-ias32"},"references":["IFRS 9 §4.2.1"],"exercise":{"prompt":{"fr":"","en":"Thêta SA issues a financial instrument. Which allocation between IAS 32 and IFRS 9 is correct?","es":""},"explanation":{"fr":"","en":"This is an interaction: the line between liability and equity belongs to IAS 32, whereas IFRS 9 classifies and measures financial liabilities, by default at amortised cost, with exceptions such as liabilities at FVTPL (IFRS 9, para. 4.2.1). Trap: Confusing the qualification of the instrument with the measurement of the liability. Rule to remember: IAS 32 distinguishes liability from equity; IFRS 9 then measures the liability (IFRS 9, para. 4.2.1).","es":""},"common_error":{"fr":"","en":"Asking IFRS 9 to decide between liability and equity.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"IAS 32 draws the line between liability and equity; IFRS 9 then measures the financial liability, by default at amortised cost.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"IAS 32 deals with the fair value measurement of instruments, IFRS 9 with balance sheet presentation.","es":""},"correct":false,"feedback":{"fr":"","en":"This allocation is inaccurate: IFRS 9 deals with the classification and measurement of financial instruments, by default at amortised cost for liabilities (IFRS 9, para. 4.2.1), whereas fair value measurement belongs to IFRS 13. IAS 32 concerns the line between liability and equity. Rule to remember: IFRS 9 classifies and measures; IAS 32 qualifies (IFRS 9, para. 4.2.1).","es":""}},{"id":"C","text":{"fr":"","en":"IFRS 9 draws the line between liability and equity; IAS 32 then measures the liability.","es":""},"correct":false,"feedback":{"fr":"","en":"The roles are reversed: the line between liability and equity belongs to IAS 32, whereas IFRS 9 classifies and measures financial liabilities, by default at amortised cost (IFRS 9, para. 4.2.1). Attributing measurement to IAS 32 reverses the allocation. Rule to remember: IAS 32 qualifies the instrument, IFRS 9 measures the liability (IFRS 9, para. 4.2.1).","es":""}},{"id":"D","text":{"fr":"","en":"IFRS 9 decides the liability / equity distinction and amortised cost, IAS 32 covers disclosures.","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 9 does not decide the distinction between liability and equity: that belongs to IAS 32. IFRS 9 comes in once the instrument has been qualified as a financial liability, to classify and measure it (IFRS 9, para. 4.2.1). Rule to remember: The liability / equity qualification comes before the IFRS 9 classification (IFRS 9, para. 4.2.1).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000124","standard_id":"IFRS9","concept_ids":["IFRS9.DERECOGNITION.LIABILITY_MODIFICATION","IFRS9.DERECOGNITION.LIABILITY_EXTINGUISHMENT"],"dimension":"APPLICATION","context":"V1_QST.IFRS9.000124","tested_point":"QST.IFRS9.000124","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":110,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000004","section_id":"rule-extinguishment"},"references":["IFRS 9 §B3.3.6A","IFRS 9 §3.3.2"],"exercise":{"prompt":{"fr":"","en":"Fiora SA renegotiates with its bank a borrowing with a carrying amount of 2,000,000 and incurs 40,000 of legal costs and fees. Case data: the 10 per cent test concludes that the new terms are not substantially different; the modification is therefore not accounted for as an extinguishment. How are the 40,000 treated?","es":""},"explanation":{"fr":"","en":"If an exchange of debt instruments or a modification of terms is accounted for as an extinguishment (IFRS 9, para. 3.3.2), the costs and fees incurred are part of the gain or loss on the extinguishment. Otherwise, they adjust the carrying amount of the liability and are amortised over the remaining term of the modified liability (IFRS 9, para. B3.3.6A). The result of the 10 per cent test is case data here. Trap: treating the costs as in an extinguishment while the original liability is retained. Rule to remember: extinguishment, costs in the gain or loss; mere modification, costs adjust the carrying amount and are amortised over the remaining term.","es":""},"common_error":{"fr":"","en":"Including the costs of a non-substantial modification in a gain or loss on extinguishment.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As an immediate expense of the period, like routine administrative costs.","es":""},"correct":false,"feedback":{"fr":"","en":"Outside an extinguishment, the costs are not expensed immediately: they adjust the carrying amount of the liability and are amortised over its remaining term (IFRS 9, para. B3.3.6A).","es":""}},{"id":"B","text":{"fr":"","en":"As an adjustment to the carrying amount of the modified borrowing, amortised over its remaining term.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"In a gain or loss on extinguishment, as if the original borrowing were repaid.","es":""},"correct":false,"feedback":{"fr":"","en":"This treatment applies only if the modification is accounted for as an extinguishment, which is not the case here (IFRS 9, paras. 3.3.2 and B3.3.6A).","es":""}},{"id":"D","text":{"fr":"","en":"As an asset, an intangible asset amortised over the term of the new contract.","es":""},"correct":false,"feedback":{"fr":"","en":"The costs do not create a separate asset: outside an extinguishment, they adjust the carrying amount of the liability (IFRS 9, para. B3.3.6A).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS9.000125","standard_id":"IFRS9","concept_ids":["IFRS9.IMPAIRMENT.CREDIT_IMPAIRED","IFRS9.IMPAIRMENT.CURE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS9.000125","tested_point":"QST.IFRS9.000125","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS9","lesson_id":"LS.IFRS9.000014","section_id":"rule-stage3"},"references":["IFRS 9 §B5.5.33","IFRS 9 §5.4.2"],"exercise":{"prompt":{"fr":"","en":"Tilia SA holds a loan measured at amortised cost that became credit-impaired after origination (it was not credit-impaired at origination). Which statements are correct? Several answers are possible.","es":""},"explanation":{"fr":"","en":"For an asset that is credit-impaired at the reporting date but was not credit-impaired at origination, the expected credit loss is the difference between the gross carrying amount and the present value of the estimated future cash flows discounted at the original effective interest rate; any adjustment is recognised in profit or loss as an impairment gain or loss (IFRS 9, para. B5.5.33). Interest revenue calculated on amortised cost reverts to the gross basis in subsequent periods if credit risk improves so that the asset is no longer credit-impaired and the improvement can be related objectively to an event occurring afterwards, such as an improvement in the borrower's credit rating (IFRS 9, para. 5.4.2). Trap: discounting at a market rate or believing the net basis is permanent. Rule to remember: original effective interest rate for measurement, return to the gross basis after an objective cure.","es":""},"common_error":{"fr":"","en":"Discounting the cash flows of a credit-impaired asset at the market rate at the reporting date.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The expected credit loss is measured by discounting the estimated future cash flows at the market rate at the reporting date.","es":""},"correct":false,"feedback":{"fr":"","en":"The discount rate is the original effective interest rate, not a market rate at the reporting date (IFRS 9, para. B5.5.33).","es":""}},{"id":"B","text":{"fr":"","en":"The expected credit loss is the difference between the gross carrying amount and the present value of the estimated future cash flows discounted at the original effective interest rate.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Once the loan is credit-impaired, interest revenue remains calculated on amortised cost until derecognition, whatever happens to credit risk.","es":""},"correct":false,"feedback":{"fr":"","en":"The net basis is not permanent: after an objective improvement in credit risk, the entity reverts to the gross carrying amount in subsequent periods (IFRS 9, para. 5.4.2).","es":""}},{"id":"D","text":{"fr":"","en":"If credit risk improves so that the loan is no longer credit-impaired, and the improvement can be related objectively to a later event, the effective rate is again applied to the gross carrying amount in subsequent periods.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"The adjustment of the loss allowance is recognised in profit or loss as an impairment gain or loss.","es":""},"correct":true}]},"scope":"CORE_STUDENT"}],"reviewTitles":{"LX.IFRS9.000001":"The scope of IFRS 9: what is in and what is out — The rule: the main scope exclusions","LX.IFRS9.000002":"The scope of IFRS 9: what is in and what is out — The rule: the main scope exclusions","LX.IFRS9.000003":"The scope of IFRS 9: what is in and what is out — Example: six Valmor group items to route","LX.IFRS9.000004":"The scope of IFRS 9: what is in and what is out — Loan commitments: excluded, except in three cases","LX.IFRS9.000005":"The scope of IFRS 9: what is in and what is out — The rule: instruments held for trading","LX.IFRS9.000006":"The scope of IFRS 9: what is in and what is out — Contracts on non-financial items: own use","LX.IFRS9.000007":"The scope of IFRS 9: what is in and what is out — The rule: the main scope exclusions","LX.IFRS9.000008":"Recognising a financial instrument and measuring it on entry — The rule: the date of initial recognition","LX.IFRS9.000009":"Recognising a financial instrument and measuring it on entry — The rule: the date of initial recognition","LX.IFRS9.000010":"Recognising a financial instrument and measuring it on entry — Regular way purchases and sales: trade date or settlement date","LX.IFRS9.000011":"Recognising a financial instrument and measuring it on entry — Regular way purchases and sales: trade date or settlement date","LX.IFRS9.000012":"Recognising a financial instrument and measuring it on entry — Worked example: a bond bought and a loan issued","LX.IFRS9.000013":"Recognising a financial instrument and measuring it on entry — The rule: fair value, adjusted for transaction costs","LX.IFRS9.000014":"Recognising a financial instrument and measuring it on entry — Entry journal entries","LX.IFRS9.000015":"Recognising a financial instrument and measuring it on entry — Trade receivables: the IFRS 15 transaction price","LX.IFRS9.000016":"Recognising a financial instrument and measuring it on entry — Pointer: fair value is the subject of IFRS 13","LX.IFRS9.000017":"Derecognising a financial asset: the decision tree — The rule: the four-step decision tree","LX.IFRS9.000018":"Derecognising a financial asset: the decision tree — The rule: the four-step decision tree","LX.IFRS9.000019":"Derecognising a financial asset: the decision tree — Assessing the risks and rewards transferred","LX.IFRS9.000020":"Derecognising a financial asset: the decision tree — Example: two receivables assignments by Bravona","LX.IFRS9.000021":"Derecognising a financial asset: the decision tree — The gain or loss on derecognition","LX.IFRS9.000022":"Derecognising a financial asset: the decision tree — The gain or loss on derecognition","LX.IFRS9.000023":"Derecognising a financial asset: the decision tree — The pass-through transfer: the three conditions","LX.IFRS9.000024":"Derecognising a financial asset: the decision tree — Retained control and continuing involvement","LX.IFRS9.000025":"Extinguishing or modifying a financial liability: the 10% test — The rule: extinguishment and its result","LX.IFRS9.000026":"Extinguishing or modifying a financial liability: the 10% test — The rule: extinguishment and its result","LX.IFRS9.000027":"Extinguishing or modifying a financial liability: the 10% test — Example and entry: buying back an issued bond","LX.IFRS9.000028":"Extinguishing or modifying a financial liability: the 10% test — Worked example: two renegotiations of Aldren's debt","LX.IFRS9.000029":"Extinguishing or modifying a financial liability: the 10% test — The rule: substantial modification and the 10% test","LX.IFRS9.000030":"Extinguishing or modifying a financial liability: the 10% test — Worked example: two renegotiations of Aldren's debt","LX.IFRS9.000031":"Extinguishing or modifying a financial liability: the 10% test — Entry for a substantial modification","LX.IFRS9.000032":"Extinguishing or modifying a financial liability: the 10% test — The rule: substantial modification and the 10% test","LX.IFRS9.000033":"Extinguishing or modifying a financial liability: the 10% test — Professional judgement: documenting the test","LX.IFRS9.000034":"Classifying a financial asset: three categories and the business model — The rule: the three categories and their conditions","LX.IFRS9.000035":"Classifying a financial asset: three categories and the business model — The rule: the three categories and their conditions","LX.IFRS9.000036":"Classifying a financial asset: three categories and the business model — Determining the business model","LX.IFRS9.000037":"Classifying a financial asset: three categories and the business model — Determining the business model","LX.IFRS9.000038":"Classifying a financial asset: three categories and the business model — Example: three portfolios of Calvane bank","LX.IFRS9.000039":"Classifying a financial asset: three categories and the business model — The rule: the three categories and their conditions","LX.IFRS9.000040":"Classifying a financial asset: three categories and the business model — The rule: the three categories and their conditions","LX.IFRS9.000041":"The contractual cash flow test (SPPI): a basic lending arrangement? — The rule: principal and interest","LX.IFRS9.000042":"The contractual cash flow test (SPPI): a basic lending arrangement? — The rule: principal and interest","LX.IFRS9.000043":"The contractual cash flow test (SPPI): a basic lending arrangement? — The rule: principal and interest","LX.IFRS9.000044":"The contractual cash flow test (SPPI): a basic lending arrangement? — Example: four securities of Brevik Bank","LX.IFRS9.000045":"The contractual cash flow test (SPPI): a basic lending arrangement? — The rule: principal and interest","LX.IFRS9.000046":"The contractual cash flow test (SPPI): a basic lending arrangement? — Modified time value and prepayment","LX.IFRS9.000047":"The contractual cash flow test (SPPI): a basic lending arrangement? — Modified time value and prepayment","LX.IFRS9.000048":"The contractual cash flow test (SPPI): a basic lending arrangement? — Non-recourse assets and contractually linked instruments","LX.IFRS9.000049":"Equity instruments: the other comprehensive income election and the fair value option — Understand: shares have no loan-type cash flows","LX.IFRS9.000050":"Equity instruments: the other comprehensive income election and the fair value option — The rule: the conditions and consequence of the election","LX.IFRS9.000051":"Equity instruments: the other comprehensive income election and the fair value option — Worked example: a Tandrel stake over two years","LX.IFRS9.000052":"Equity instruments: the other comprehensive income election and the fair value option — Election entries: acquisition, measurement, dividend and sale","LX.IFRS9.000053":"Equity instruments: the other comprehensive income election and the fair value option — The rule: the conditions and consequence of the election","LX.IFRS9.000054":"Equity instruments: the other comprehensive income election and the fair value option — The fair value option for a financial asset","LX.IFRS9.000055":"Equity instruments: the other comprehensive income election and the fair value option — The rule: the conditions and consequence of the election","LX.IFRS9.000056":"Classifying a financial liability: amortised cost by default and its exceptions — The rule: amortised cost and the main exceptions","LX.IFRS9.000057":"Classifying a financial liability: amortised cost by default and its exceptions — Understand: for a debt, amortised cost is the rule","LX.IFRS9.000058":"Classifying a financial liability: amortised cost by default and its exceptions — Worked example and entry: Zelmar's designated debt","LX.IFRS9.000059":"Classifying a financial liability: amortised cost by default and its exceptions — Worked example and entry: Zelmar's designated debt","LX.IFRS9.000060":"Classifying a financial liability: amortised cost by default and its exceptions — The own credit risk of a designated liability","LX.IFRS9.000061":"Classifying a financial liability: amortised cost by default and its exceptions — The boundary with IAS 32: liability or equity?","LX.IFRS9.000062":"Classifying a financial liability: amortised cost by default and its exceptions — The fair value option for a liability","LX.IFRS9.000063":"The effective interest rate and amortised cost — Understand: a return spread over the whole life","LX.IFRS9.000064":"The effective interest rate and amortised cost — The rule: fees and costs that enter the effective rate","LX.IFRS9.000065":"The effective interest rate and amortised cost — The rule: fees and costs that enter the effective rate","LX.IFRS9.000066":"The effective interest rate and amortised cost — Worked example: Bavrel Bank's loan with arrangement fees","LX.IFRS9.000067":"The effective interest rate and amortised cost — Worked example: Bavrel Bank's loan with arrangement fees","LX.IFRS9.000068":"The effective interest rate and amortised cost — Entries: net disbursement, annual interest and repayment","LX.IFRS9.000069":"The effective interest rate and amortised cost — Entries: net disbursement, annual interest and repayment","LX.IFRS9.000070":"The effective interest rate and amortised cost — How to build the amortised cost schedule","LX.IFRS9.000071":"The effective interest rate and amortised cost — How to build the amortised cost schedule","LX.IFRS9.000072":"Debt instruments at FVOCI, FVTPL gains and modification of an asset's cash flows — The rule: what goes to profit or loss, what goes to OCI","LX.IFRS9.000073":"Debt instruments at FVOCI, FVTPL gains and modification of an asset's cash flows — Worked example: a Kestrel bond sold before maturity","LX.IFRS9.000074":"Debt instruments at FVOCI, FVTPL gains and modification of an asset's cash flows — Entries: measurement, sale and recycling","LX.IFRS9.000075":"Debt instruments at FVOCI, FVTPL gains and modification of an asset's cash flows — The rule: what goes to profit or loss, what goes to OCI","LX.IFRS9.000076":"Debt instruments at FVOCI, FVTPL gains and modification of an asset's cash flows — Assets at FVTPL: all changes in profit or loss","LX.IFRS9.000077":"Debt instruments at FVOCI, FVTPL gains and modification of an asset's cash flows — Modification of an asset's contractual cash flows","LX.IFRS9.000078":"Debt instruments at FVOCI, FVTPL gains and modification of an asset's cash flows — Modification of an asset's contractual cash flows","LX.IFRS9.000079":"Reclassification: only if the business model changes — Understand: classification is not revised at every change of mood","LX.IFRS9.000080":"Reclassification: only if the business model changes — The rule: what is, and what is not, a change of model","LX.IFRS9.000081":"Reclassification: only if the business model changes — The reclassification date and prospective application","LX.IFRS9.000082":"Reclassification: only if the business model changes — Worked example: a portfolio reclassified from amortised cost to FVTPL","LX.IFRS9.000083":"Reclassification: only if the business model changes — Worked example: a portfolio reclassified from amortised cost to FVTPL","LX.IFRS9.000084":"Reclassification: only if the business model changes — Professional judgement: demonstrating a model change","LX.IFRS9.000085":"Reclassification: only if the business model changes — Financial liabilities are not reclassified","LX.IFRS9.000086":"Impairment: expected credit losses and three stages — The vocabulary: credit loss, expected loss, stage 3","LX.IFRS9.000087":"Impairment: expected credit losses and three stages — Understand: provisioning losses before they happen","LX.IFRS9.000088":"Impairment: expected credit losses and three stages — Worked example: three loans, three stages","LX.IFRS9.000089":"Impairment: expected credit losses and three stages — Worked example: three loans, three stages","LX.IFRS9.000090":"Impairment: expected credit losses and three stages — Assessing a significant increase in credit risk","LX.IFRS9.000091":"Impairment: expected credit losses and three stages — Worked example: three loans, three stages","LX.IFRS9.000092":"Impairment: expected credit losses and three stages — The low credit risk simplification","LX.IFRS9.000093":"Impairment: expected credit losses and three stages — An asset modified without derecognition","LX.IFRS9.000094":"Impairment: expected credit losses and three stages — Instruments within the model","LX.IFRS9.000095":"Measuring the expected credit loss — The rule: the three requirements of measurement","LX.IFRS9.000096":"Measuring the expected credit loss — Worked example: three scenarios for Garnet Bank's loan","LX.IFRS9.000097":"Measuring the expected credit loss — Entry for the loss allowance","LX.IFRS9.000098":"Measuring the expected credit loss — Another presentation: exposure, probability of default, loss given default","LX.IFRS9.000099":"Measuring the expected credit loss — The maximum period of exposure","LX.IFRS9.000100":"Measuring the expected credit loss — Revolving facilities, loan commitments and guarantees","LX.IFRS9.000101":"Measuring the expected credit loss — The rule: the three requirements of measurement","LX.IFRS9.000102":"Credit-impaired assets, cure, write-off and presentation of impairment — Worked example: a credit-impaired loan of Sorvik Bank","LX.IFRS9.000103":"Credit-impaired assets, cure, write-off and presentation of impairment — Worked example: a credit-impaired loan of Sorvik Bank","LX.IFRS9.000104":"Credit-impaired assets, cure, write-off and presentation of impairment — Cure: return to 12-month losses","LX.IFRS9.000105":"Credit-impaired assets, cure, write-off and presentation of impairment — Presenting impairment and reconciling the loss allowance","LX.IFRS9.000106":"Credit-impaired assets, cure, write-off and presentation of impairment — Writing off an uncollectable asset","LX.IFRS9.000107":"Credit-impaired assets, cure, write-off and presentation of impairment — Writing off an uncollectable asset","LX.IFRS9.000108":"Credit-impaired assets, cure, write-off and presentation of impairment — Purchased or originated credit-impaired assets (POCI)","LX.IFRS9.000109":"Credit-impaired assets, cure, write-off and presentation of impairment — Purchased or originated credit-impaired assets (POCI)","LX.IFRS9.000110":"The simplified approach and the provision matrix — The rule: compulsory or optional depending on the asset","LX.IFRS9.000111":"The simplified approach and the provision matrix — The rule: compulsory or optional depending on the asset","LX.IFRS9.000112":"The simplified approach and the provision matrix — Worked example: Avrelle SA's matrix","LX.IFRS9.000113":"The simplified approach and the provision matrix — Where a loss rate comes from: history and forward-looking adjustment","LX.IFRS9.000114":"The simplified approach and the provision matrix — Entry for the charge from the matrix","LX.IFRS9.000115":"The simplified approach and the provision matrix — Worked example: Avrelle SA's matrix","LX.IFRS9.000116":"Embedded derivatives — The rule: the host is a financial asset","LX.IFRS9.000117":"Embedded derivatives — The three separation conditions for other hosts","LX.IFRS9.000118":"Embedded derivatives — The rule: the host is a financial asset","LX.IFRS9.000119":"Embedded derivatives — Example: the convertible bond held by Norvik","LX.IFRS9.000120":"Embedded derivatives — Worked example: a debt indexed to a commodity","LX.IFRS9.000121":"Embedded derivatives — Designating the whole hybrid contract at fair value through profit or loss","QST.IFRS9.000001":"The scope of IFRS 9: what is in and what is out — The rule: the main scope exclusions","QST.IFRS9.000002":"The scope of IFRS 9: what is in and what is out — The rule: the main scope exclusions","QST.IFRS9.000003":"The scope of IFRS 9: what is in and what is out — The rule: the main scope exclusions","QST.IFRS9.000004":"Impairment: expected credit losses and three stages — The vocabulary: credit loss, expected loss, stage 3","QST.IFRS9.000005":"Impairment: expected credit losses and three stages — The vocabulary: credit loss, expected loss, stage 3","QST.IFRS9.000006":"Impairment: expected credit losses and three stages — The vocabulary: credit loss, expected loss, stage 3","QST.IFRS9.000007":"Recognising a financial instrument and measuring it on entry — The rule: the date of initial recognition","QST.IFRS9.000008":"Recognising a financial instrument and measuring it on entry — The rule: the date of initial recognition","QST.IFRS9.000010":"Recognising a financial instrument and measuring it on entry — Regular way purchases and sales: trade date or settlement date","QST.IFRS9.000012":"Derecognising a financial asset: the decision tree — The pass-through transfer: the three conditions","QST.IFRS9.000013":"Extinguishing or modifying a financial liability: the 10% test — The rule: extinguishment and its result","QST.IFRS9.000014":"Extinguishing or modifying a financial liability: the 10% test — The rule: extinguishment and its result","QST.IFRS9.000016":"Extinguishing or modifying a financial liability: the 10% test — The rule: substantial modification and the 10% test","QST.IFRS9.000017":"Extinguishing or modifying a financial liability: the 10% test — The rule: substantial modification and the 10% test","QST.IFRS9.000019":"Classifying a financial liability: amortised cost by default and its exceptions — The fair value option for a liability","QST.IFRS9.000021":"Recognising a financial instrument and measuring it on entry — The rule: fair value, adjusted for transaction costs","QST.IFRS9.000023":"Recognising a financial instrument and measuring it on entry — The rule: fair value, adjusted for transaction costs","QST.IFRS9.000024":"Recognising a financial instrument and measuring it on entry — Trade receivables: the IFRS 15 transaction price","QST.IFRS9.000026":"The effective interest rate and amortised cost — How to build the amortised cost schedule","QST.IFRS9.000027":"The effective interest rate and amortised cost — How to build the amortised cost schedule","QST.IFRS9.000029":"Debt instruments at FVOCI, FVTPL gains and modification of an asset's cash flows — Modification of an asset's contractual cash flows","QST.IFRS9.000030":"Impairment: expected credit losses and three stages — Understand: provisioning losses before they happen","QST.IFRS9.000031":"Impairment: expected credit losses and three stages — Understand: provisioning losses before they happen","QST.IFRS9.000033":"Impairment: expected credit losses and three stages — Assessing a significant increase in credit risk","QST.IFRS9.000034":"Impairment: expected credit losses and three stages — Assessing a significant increase in credit risk","QST.IFRS9.000036":"Credit-impaired assets, cure, write-off and presentation of impairment — The rule: interest on the net amount at stage 3","QST.IFRS9.000037":"Credit-impaired assets, cure, write-off and presentation of impairment — The rule: interest on the net amount at stage 3","QST.IFRS9.000039":"The simplified approach and the provision matrix — The rule: compulsory or optional depending on the asset","QST.IFRS9.000040":"The simplified approach and the provision matrix — The rule: compulsory or optional depending on the asset","QST.IFRS9.000042":"Impairment: expected credit losses and three stages — An asset modified without derecognition","QST.IFRS9.000043":"Measuring the expected credit loss — Revolving facilities, loan commitments and guarantees","QST.IFRS9.000044":"Embedded derivatives — The three separation conditions for other hosts","QST.IFRS9.000045":"Embedded derivatives — The three separation conditions for other hosts","QST.IFRS9.000046":"Recognising a financial instrument and measuring it on entry — Pointer: fair value is the subject of IFRS 13","QST.IFRS9.000047":"Recognising a financial instrument and measuring it on entry — Trade receivables: the IFRS 15 transaction price","QST.IFRS9.000048":"The simplified approach and the provision matrix — Lease receivables and lease liabilities: pointers to IFRS 16","QST.IFRS9.000049":"The scope of IFRS 9: what is in and what is out — Loan commitments: excluded, except in three cases","QST.IFRS9.000050":"The scope of IFRS 9: what is in and what is out — Loan commitments: excluded, except in three cases","QST.IFRS9.000051":"The scope of IFRS 9: what is in and what is out — Contracts on non-financial items: own use","QST.IFRS9.000052":"The scope of IFRS 9: what is in and what is out — The rule: instruments held for trading","QST.IFRS9.000053":"The scope of IFRS 9: what is in and what is out — The rule: instruments held for trading","QST.IFRS9.000054":"Derecognising a financial asset: the decision tree — The rule: the four-step decision tree","QST.IFRS9.000055":"Derecognising a financial asset: the decision tree — The rule: the four-step decision tree","QST.IFRS9.000056":"Derecognising a financial asset: the decision tree — The rule: the four-step decision tree","QST.IFRS9.000057":"Derecognising a financial asset: the decision tree — Assessing the risks and rewards transferred","QST.IFRS9.000058":"Derecognising a financial asset: the decision tree — Assessing the risks and rewards transferred","QST.IFRS9.000059":"Derecognising a financial asset: the decision tree — Assessing the risks and rewards transferred","QST.IFRS9.000060":"Derecognising a financial asset: the decision tree — Retained control and continuing involvement","QST.IFRS9.000061":"Derecognising a financial asset: the decision tree — The rule: the four-step decision tree","QST.IFRS9.000062":"Derecognising a financial asset: the decision tree — The rule: the four-step decision tree","QST.IFRS9.000064":"Derecognising a financial asset: the decision tree — The gain or loss on derecognition","QST.IFRS9.000065":"Derecognising a financial asset: the decision tree — The gain or loss on derecognition","QST.IFRS9.000066":"Classifying a financial asset: three categories and the business model — The rule: the three categories and their conditions","QST.IFRS9.000067":"Classifying a financial asset: three categories and the business model — The rule: the three categories and their conditions","QST.IFRS9.000068":"Classifying a financial asset: three categories and the business model — The rule: the three categories and their conditions","QST.IFRS9.000069":"Classifying a financial asset: three categories and the business model — Determining the business model","QST.IFRS9.000070":"Classifying a financial asset: three categories and the business model — Determining the business model","QST.IFRS9.000071":"Classifying a financial asset: three categories and the business model — Determining the business model","QST.IFRS9.000072":"The contractual cash flow test (SPPI): a basic lending arrangement? — The rule: principal and interest","QST.IFRS9.000073":"The contractual cash flow test (SPPI): a basic lending arrangement? — The rule: principal and interest","QST.IFRS9.000074":"The contractual cash flow test (SPPI): a basic lending arrangement? — The rule: principal and interest","QST.IFRS9.000075":"The contractual cash flow test (SPPI): a basic lending arrangement? — Modified time value and prepayment","QST.IFRS9.000076":"The contractual cash flow test (SPPI): a basic lending arrangement? — Non-recourse assets and contractually linked instruments","QST.IFRS9.000077":"Equity instruments: the other comprehensive income election and the fair value option — The fair value option for a financial asset","QST.IFRS9.000078":"Equity instruments: the other comprehensive income election and the fair value option — The fair value option for a financial asset","QST.IFRS9.000079":"Equity instruments: the other comprehensive income election and the fair value option — The rule: the conditions and consequence of the election","QST.IFRS9.000080":"Equity instruments: the other comprehensive income election and the fair value option — The rule: the conditions and consequence of the election","QST.IFRS9.000082":"Classifying a financial liability: amortised cost by default and its exceptions — The rule: amortised cost and the main exceptions","QST.IFRS9.000083":"Classifying a financial liability: amortised cost by default and its exceptions — The rule: amortised cost and the main exceptions","QST.IFRS9.000084":"Classifying a financial liability: amortised cost by default and its exceptions — The rule: amortised cost and the main exceptions","QST.IFRS9.000085":"Classifying a financial liability: amortised cost by default and its exceptions — The own credit risk of a designated liability","QST.IFRS9.000087":"The effective interest rate and amortised cost — The rule: fees and costs that enter the effective rate","QST.IFRS9.000088":"The effective interest rate and amortised cost — The rule: fees and costs that enter the effective rate","QST.IFRS9.000089":"The effective interest rate and amortised cost — The rule: fees and costs that enter the effective rate","QST.IFRS9.000091":"Credit-impaired assets, cure, write-off and presentation of impairment — Writing off an uncollectable asset","QST.IFRS9.000092":"Debt instruments at FVOCI, FVTPL gains and modification of an asset's cash flows — The rule: what goes to profit or loss, what goes to OCI","QST.IFRS9.000093":"Debt instruments at FVOCI, FVTPL gains and modification of an asset's cash flows — The rule: what goes to profit or loss, what goes to OCI","QST.IFRS9.000096":"Debt instruments at FVOCI, FVTPL gains and modification of an asset's cash flows — Assets at FVTPL: all changes in profit or loss","QST.IFRS9.000097":"Reclassification: only if the business model changes — The rule: what is, and what is not, a change of model","QST.IFRS9.000098":"Reclassification: only if the business model changes — The rule: what is, and what is not, a change of model","QST.IFRS9.000100":"Reclassification: only if the business model changes — Financial liabilities are not reclassified","QST.IFRS9.000101":"Reclassification: only if the business model changes — Financial liabilities are not reclassified","QST.IFRS9.000102":"Impairment: expected credit losses and three stages — Instruments within the model","QST.IFRS9.000103":"Impairment: expected credit losses and three stages — Instruments within the model","QST.IFRS9.000104":"Impairment: expected credit losses and three stages — The low credit risk simplification","QST.IFRS9.000105":"Impairment: expected credit losses and three stages — The low credit risk simplification","QST.IFRS9.000106":"Credit-impaired assets, cure, write-off and presentation of impairment — Cure: return to 12-month losses","QST.IFRS9.000108":"Credit-impaired assets, cure, write-off and presentation of impairment — Presenting impairment and reconciling the loss allowance","QST.IFRS9.000109":"Credit-impaired assets, cure, write-off and presentation of impairment — Presenting impairment and reconciling the loss allowance","QST.IFRS9.000110":"The simplified approach and the provision matrix — The provision matrix: a loss rate per ageing bucket","QST.IFRS9.000111":"The simplified approach and the provision matrix — The provision matrix: a loss rate per ageing bucket","QST.IFRS9.000113":"Measuring the expected credit loss — The rule: the three requirements of measurement","QST.IFRS9.000114":"Measuring the expected credit loss — The rule: the three requirements of measurement","QST.IFRS9.000116":"Measuring the expected credit loss — The maximum period of exposure","QST.IFRS9.000117":"Credit-impaired assets, cure, write-off and presentation of impairment — Purchased or originated credit-impaired assets (POCI)","QST.IFRS9.000118":"Embedded derivatives — The rule: the host is a financial asset","QST.IFRS9.000119":"Embedded derivatives — The rule: the host is a financial asset","QST.IFRS9.000120":"Embedded derivatives — The rule: the host is a financial asset","QST.IFRS9.000121":"Embedded derivatives — Designating the whole hybrid contract at fair value through profit or loss","QST.IFRS9.000122":"Classifying a financial liability: amortised cost by default and its exceptions — The boundary with IAS 32: liability or equity?","QST.IFRS9.000124":"Extinguishing or modifying a financial liability: the 10% test — The rule: extinguishment and its result","QST.IFRS9.000125":"Credit-impaired assets, cure, write-off and presentation of impairment — The rule: interest on the net amount at stage 3"}}