Problem 9 2 Multiple Choice (IFRIC 19)

1. An entity shall initially measure equity instruments issued to extinguish all or part
of a financial liability at

a. Fair value of the equity instruments issued

b. Fair value of the liability extinguished
c. Par value of the equity instruments issued
d. Carrying amount of the liability extinguished

2. If the fair value of the equity instruments issued cannot be reliably measured, the
equity instruments issued to extinguish a financial liability shall be measured at

a. Fair value of the liability extinguished

b. Par value of the equity instruments issued
c. Carrying amount of the liability extinguished
d. Book value of the equity instruments issued

3. If both of the fair value of the equity instruments issued, and the fair value of the
financial liability extinguished cannot be measured reliably, the equity instruments
issued shall be measured at

a. Carrying amount of the liability extinguished

b. Par value of equity instruments issued
c. Book value of the equity instruments issued
d. Value assigned by the Board of Directors

4. The difference between the carrying amount of the financial liability extinguished
and the fair value of equity instruments issued or fair value of liability extinguished
in the absence of the fair value of equity instruments issued shall be recognized in

a. Profit or loss
b. Other comprehensive income
c. Retained earnings
d. General reserve

5. The gain or loss from extinguishment of a financial liability by issuing equity

instruments shall be presented in the statement of comprehensive income as

a. Other income or other expenses

b. Separate line item in profit or loss
c. Component of other comprehensive income
d. Component of finance cost