ap0258

cpk123 Wrote:
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> Cost Incl. Txn Costs under US GAAP.
> Fair Value incl. Txn Cost under IFRS
>

Thanks CP for correcting it.

ningning1984

1-b
2-c
3-a
4-a
5-c
6-c
7-c
8-c
9-c
10-c

ninja1024

1-b
2-a
3-a
4-a
5-c
6-b
7-c
8-c
9-?
10-a

ayaz_mahmud369

Correct Answers:

1 A
2 A
3 A
4 A
5 C
6 B
7 C
8 C
9 C
10 A

iteracom

intelo - 70%

rus1bus - 50%

bpdulog - 60%

parac - 60%

june2009 - 80%

giorgio10

cpk123 Wrote:
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> 8) Which of these statements is accurate?
>
> A) IFRS require held-to-maturity securities to be
> initially recognized at cost including transaction
> costs.
> B) US GAAP require held-to-maturity securities to
> be initially recognized at fair value including
> transaction costs.
> C) Both statements are incorrect.
>
> This quesion is not exactly rightly worded. The
> actual treatment is
> Cost Incl. Txn Costs under US GAAP.
> Fair Value incl. Txn Cost under IFRS
>
> However, in general -> Fair Value = Costs
> excluding Transaction Costs. So BOTH IFRS and US
> GAAP are IDENTICAL in their initial value
> estimation for HTM securities.

CFAI text: "IFRS require that held-to-maturity securities be initially recognized at fair value including transaction costs, whereas U.S. GAAP require held-to-maturity securities be initially recognized at cost including transaction costs. In most cases, however, initial fair value is equal to cost excluding transaction costs, so the treatment is identical."