CAF-6 · Chapter 2 · Question 13 of 15
Sigma Bank holds a loan receivable from a corporate client. Which of the following events would act as an indicator that the loan is impaired under IFRS 9?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) The borrower being granted concessions due to significant financial difficulty.
Explanation
IFRS 9 lists significant financial difficulty, breach of contract, borrower bankruptcy, and the granting of concessions to the borrower as primary indicators of impairment.
More Financial instruments MCQs
- Q15For an investment in debt instruments measured at FVOCI, how is the effective interest accounted for?
- Q1According to the definitions in IAS 32, which of the following items is explicitly classified as a non-financial liability?
- Q2When should an entity initially recognize a financial asset or a financial liability in its statement of financial position?
- Q3Alpha Corp purchases equity shares in another company. The shares are not held for trading. According to IFRS 9, how can Alpha Corp…
- Q4Beta Ltd acquires a debt instrument. Its business model is solely to hold the asset to collect contractual cash flows. Additionally, the…