Accounting for Investments and Financial Instruments

CHAPTER 17
Investments

ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC)

Brief Concepts
Topics Questions Exercises Exercises Problems for Analysis
1. Debt investments. 1, 2, 3, 4, 11, 1, 9 1 4, 7
12
(a) Held-for-collection. 6, 7, 9 1, 2, 4, 11 2, 3, 5, 7, 22 1, 2, 7 1, 4

(b) Held-for-collection and 6, 9 6 1, 4, 7 4
selling.
(c) Trading. 5, 8, 9, 10 3, 6 4 1, 3, 4, 7 1, 3, 4

2. Bond amortization. 7, 8 1, 2, 3, 4 3, 4, 5 1, 2

3. Fair value option. 11, 12, 27 5 7, 8, 19 2, 7

4. Equity investments. 1, 13, 14, 16 1 4, 7
(a) Non-trading. 17, 23 8, 9 10, 12, 13 4, 5, 6, 8, 10 3, 4
(b) Trading. 15, 17, 23 7 10, 11, 13, 3, 5, 6, 8, 9, 1, 2, 3
14, 15, 17, 10, 11
18, 19
(c) Equity method; 18, 19, 20, 21, 10 15, 16, 19, 8 5, 6
Consolidations. 22 20

5. Impairments. 25 11, 12 21, 22, 23 1, 3

6. Recycling, Reclassifications 24, 26 13 1, 3, 7
between categories.

7. Disclosures of investments. 10 5, 8, 9, 10,
11

* 8. Derivatives. 28, 29, 30, 31, 24, 25, 26, 12, 13, 14,
32, 33, 34, 35 27, 28, 29 15, 16, 17




*This material is dealt with in an Appendix to the chapter.

, Copyright © 2020 Wiley Kieso, IFRS, 4/e, Solutions Manual (For Instructor Use Only)-1

ASSIGNMENT CLASSIFICATION TABLE (BY LEARNING OBJECTIVE)

Brief Concepts
Learning Objectives Exercises Exercises Problems for Analysis

, 1. Describe the accounting for debt 1, 2, 3, 4, 5, 1, 2, 3, 4, 5, 6, 1, 2, 3, 4, 7 1, 3, 7
investments. 6 7, 8

2. Describe the accounting for equity 7, 8, 9 1, 10, 11, 12, 3, 5, 6, 8, 9, 1, 2, 3, 4, 7
investments. 13, 14, 15, 17 10, 11
18, 19

3. Explain the equity method of 10 15, 16, 19, 20 8 5, 6
accounting.

4. Evaluate other major issues 11, 12, 13 9, 21, 22, 23 7 7
related to debt and equity
investments.

*5. Describe the uses of and 24 12, 13, 14
accounting for derivatives.

*6. Explain the accounting for 25, 26, 27, 28 15, 16, 17
hedges.

*7. Identify special reporting issues 29
related to derivative financial
instruments that cause unique
accounting problems.

8. Describe required fair value
disclosures.




17-2
ASSIGNMENT CHARACTERISTICS TABLE
Level of Time
Item Description Difficulty (minutes)
E17.1 Investment classifications. Simple 5–7
E17.2 Debt investments. Moderate 6–8
E17.3 Debt investments. Moderate 15–20
E17.4 Debt investments. Moderate 10–15
E17.5 Debt investments. Moderate 8–10
E17.6 HFCS debt securities entries and financial statement Moderate 12-15
presentation
E17.7 Fair value option. Moderate 12–15
E17.8 Fair value option. Moderate 8–10
E17.9 Comprehensive income disclosure Moderate 10-15
E17.10 Entries for equity investments. Moderate 8–10
E17.11 Equity investments. Moderate 10–15
E17.12 Equity investment entries and reporting. Moderate 5–7
E17.13 Equity investment entries and financial statement Moderate 10–15
presentation.
E17.14 Equity investment entries. Moderate 20–25

, E17.15 Journal entries for fair value and equity methods. Moderate 15–20
E17.16 Equity method. Moderate 10–15
E17.17 Equity investments—trading. Moderate 8–10
E17.18 Equity investments—trading. Moderate 15–20
E17.19 Fair value and equity method compared. Moderate 20–25
E17.20 Equity method. Moderate 8–10
E17.21 Impairment. Moderate 8–12
E17.22 Impairment. Moderate 10–15
E17.23 Impairment. Moderate 15-18
*E17.24 Derivative transaction. Moderate 8–10
*E17.25 Fair value hedge. Moderate 8–12
*E17.26 Cash flow hedge. Moderate 8–12
*E17.27 Fair value hedge. Moderate 10–15
*E17.28 Call option. Moderate 20–25
*E17.29 Cash flow hedge. Moderate 25–30

P17.1 Debt investments. Moderate 20–30
P17.2 Debt investments, fair value option. Moderate 20–25
P17.3 Debt and equity investments. Moderate 20–25
P17.4 Debt investments. Moderate 20–30
P17.5 Equity investment entries and disclosures. Moderate 25–35
P17.6 Equity investments. Moderate 15–25
P17.7 Debt investment entries. Moderate 20–30
P17.8 Fair value and equity method. Moderate 20–30
P17.9 Financial statement presentation of equity investments. Moderate 20–30