10/15/24, 9:40 Kieso IFRS2e SM Ch17 - Solution Manual for book exercise
AM intermediate a…
CHAPTER 17
Investments
ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC)
Brief Concepts
Topics Questions Exercises Exercises Problems for
Analysis
1. Debt investments. 1, 2, 3, 13 1 4, 7
(a) Held-for-collection. 4, 5, 6, 8, 1, 3, 10 2, 3, 4 1, 2, 7 1, 4
11, 13
(b) Trading. 2, 4, 7, 8, 2, 4 5 1, 3, 4, 7 1, 4
9, 22
2. Bond amortization. 6, 7 1, 2, 3 3, 4, 5 1, 2
3. Equity investments. 1, 12, 17 1 4, 7
(a) Non-trading. 16, 22 7, 8 8, 10, 11 5, 6, 8, 9, 3
10, 12
(b) Trading. 8, 9, 14, 6 8, 9, 11, 3, 5, 6, 8, 1, 2, 3
9,
15, 16, 22 12, 13, 10, 11
15,
16, 17
(c) Equity method. 17, 18, 19, 9 13, 14, 8 5, 6
20, 21 17, 18
4. Disclosures of 22 10, 11 5, 8, 9, 10,
investments.
11, 12
5. Fair value option. 10, 11, 25 5 6, 7 2, 7
6. Impairments. 23, 27 10 19, 20 1, 3
7. Transfers between 24 11 1, 3, 7
categories.
*8. Derivatives. 29, 30, 31, 21, 22, 12, 13, 14,
32, 23,
33, 34, 35, 24, 25, 26 15, 16, 17
36
*This material is dealt with in an Appendix to the chapter.
Copyright © 2014 John Wiley & Sons, Inc. Kieso, IFRS, 2/e, Solutions Manual (For Instructor Use Only) 17-1
about:blan 1/
k 80
,10/15/24, 9:40 Kieso IFRS2e SM Ch17 - Solution Manual for book exercise
AM intermediate a…
ASSIGNMENT CLASSIFICATION TABLE (BY LEARNING OBJECTIVE)
Brief
Learning Objectives Exercises Exercises Problem
s
1. Describe the accounting framework for 1
financial assets.
2. Understand the accounting for debt 1, 2, 3 2, 3, 4 1, 2, 7
investments at amortized cost.
3. Understand the accounting for debt 2, 4 1, 5, 1, 3, 4, 7
investments at fair value.
4. Describe the accounting for the fair 5 6, 7 2, 7, 10,
value option.
5. Understand the accounting for equity 6, 7, 8 8, 9, 10, 11, 3, 5, 8, 9,
investments at fair value. 12, 13, 15, 10, 11,
12
16, 17,
6. Explain the equity method of 9 13, 14, 17, 6, 8
accounting and compare it to the fair 18
value method for equity investments.
7. Discuss the accounting for 10 19, 20
impairments of debt investments.
8. Describe the accounting for transfer of 11
investments between categories.
*9. Explain who uses derivatives and why.
*10. Understand the basic guidelines for
accounting for derivatives.
*11. Describe the accounting for derivative 21, 25 12, 13,
financial instruments. 14
*12. Explain how to account for a fair value 22, 24 15, 17
hedge.
*13. Explain how to account for a cash flow 23, 26 16
hedge.
17-2 Copyright © 2014 John Wiley & Sons, Inc. Kieso, IFRS, 2/e, Solutions Manual (For Instructor Use Only)
about:blan 2/
k 80
,10/15/24, 9:40 Kieso IFRS2e SM Ch17 - Solution Manual for book exercise
AM intermediate a…
ASSIGNMENT CHARACTERISTICS TABLE
Item Level Time
of (minutes
Description Difficult )
y
E17-1 Investment classifications. Simple 5–10
E17-2 Debt investments. Simple 10–15
E17-3 Debt investments. Simple 15–20
E17-4 Debt investments. Simple 10–15
E17-5 Debt investments. Simple 10–15
E17-6 Fair value option. Simple 5–10
E17-7 Fair value option. Moderate 15–20
E17-8 Entries for equity investments. Simple 10–15
E17-9 Equity investments. Simple 10–15
E17-10 Equity investment entries and reporting. Simple 5–10
E17-11 Equity investment entries and financial Simple 10–15
statement presentation.
E17-12 Equity investment entries. Simple 20–25
E17-13 Journal entries for fair value and equity methods. Simple 15–20
E17-14 Equity method. Moderate 10–15
E17-15 Equity investments—trading. Moderate 10–15
E17-16 Equity investments—trading. Moderate 15–20
E17-17 Fair value and equity method compared. Simple 15–20
E17-18 Equity method. Simple 10–15
E17-19 Impairment. Moderate 15–20
E17-20 Impairment. Moderate 10–15
*E17-21 Derivative transaction. Moderate 15–20
*E17-22 Fair value hedge. Moderate 20–25
*E17-23 Cash flow hedge. Moderate 20–25
*E17-24 Fair value hedge. Moderate 15–20
*E17-25 Call option. Moderate 20–25
*E17-26 Cash flow hedge. Moderate 25–30
P17-1 Debt investments. Moderate 20–30
P17-2 Debt investments, fair value option. Moderate 30–40
P17-3 Debt and equity investments. Moderate 25–30
P17-4 Debt investments. Moderate 25–35
P17-5 Equity investment entries and disclosures. Moderate 25–35
P17-6 Equity investments. Simple 25–35
P17-7 Debt investment entries. Moderate 25–35
P17-8 Fair value and equity methods. Moderate 20–30
P17-9 Financial statement presentation of equity investments. Moderate 20–30
Copyright © 2014 John Wiley & Sons, Inc. Kieso, IFRS, 2/e, Solutions Manual (For Instructor Use Only) 17-3
about:blan 3/
k 80
, 10/15/24, 9:40 Kieso IFRS2e SM Ch17 - Solution Manual for book exercise
AM intermediate a…
ASSIGNMENT CHARACTERISTICS TABLE (Continued)
Item Level Time
of (minutes
Description Difficult )
y
P17-10 Equity investments. Complex 30–40
P17-11 Investments—statement presentation. Moderate 20–30
*P17-12 Derivative financial instrument. Moderate 20–25
*P17-13 Derivative financial instrument. Moderate 20–25
*P17-14 Free-standing derivative. Moderate 20–25
*P17-15 Fair value hedge interest rate swap. Moderate 30–40
*P17-16 Cash flow hedge. Moderate 25–35
*P17-17 Fair value hedge. Moderate 25–35
CA17-1 Issues raised about investments. Moderate 25–30
CA17-2 Equity investments. Moderate 25–30
CA17-3 Financial statement effect of investments. Simple 20–30
CA17-4 Equity investments. Moderate 20–25
CA17-5 Investment accounted for under the equity method. Simple 15–25
CA17-6 Equity investments. Moderate 25–35
CA17-7 Fair value. Moderate 25–35
17-4 Copyright © 2014 John Wiley & Sons, Inc. Kieso, IFRS, 2/e, Solutions Manual (For Instructor Use Only)
about:blan 4/
k 80
AM intermediate a…
CHAPTER 17
Investments
ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC)
Brief Concepts
Topics Questions Exercises Exercises Problems for
Analysis
1. Debt investments. 1, 2, 3, 13 1 4, 7
(a) Held-for-collection. 4, 5, 6, 8, 1, 3, 10 2, 3, 4 1, 2, 7 1, 4
11, 13
(b) Trading. 2, 4, 7, 8, 2, 4 5 1, 3, 4, 7 1, 4
9, 22
2. Bond amortization. 6, 7 1, 2, 3 3, 4, 5 1, 2
3. Equity investments. 1, 12, 17 1 4, 7
(a) Non-trading. 16, 22 7, 8 8, 10, 11 5, 6, 8, 9, 3
10, 12
(b) Trading. 8, 9, 14, 6 8, 9, 11, 3, 5, 6, 8, 1, 2, 3
9,
15, 16, 22 12, 13, 10, 11
15,
16, 17
(c) Equity method. 17, 18, 19, 9 13, 14, 8 5, 6
20, 21 17, 18
4. Disclosures of 22 10, 11 5, 8, 9, 10,
investments.
11, 12
5. Fair value option. 10, 11, 25 5 6, 7 2, 7
6. Impairments. 23, 27 10 19, 20 1, 3
7. Transfers between 24 11 1, 3, 7
categories.
*8. Derivatives. 29, 30, 31, 21, 22, 12, 13, 14,
32, 23,
33, 34, 35, 24, 25, 26 15, 16, 17
36
*This material is dealt with in an Appendix to the chapter.
Copyright © 2014 John Wiley & Sons, Inc. Kieso, IFRS, 2/e, Solutions Manual (For Instructor Use Only) 17-1
about:blan 1/
k 80
,10/15/24, 9:40 Kieso IFRS2e SM Ch17 - Solution Manual for book exercise
AM intermediate a…
ASSIGNMENT CLASSIFICATION TABLE (BY LEARNING OBJECTIVE)
Brief
Learning Objectives Exercises Exercises Problem
s
1. Describe the accounting framework for 1
financial assets.
2. Understand the accounting for debt 1, 2, 3 2, 3, 4 1, 2, 7
investments at amortized cost.
3. Understand the accounting for debt 2, 4 1, 5, 1, 3, 4, 7
investments at fair value.
4. Describe the accounting for the fair 5 6, 7 2, 7, 10,
value option.
5. Understand the accounting for equity 6, 7, 8 8, 9, 10, 11, 3, 5, 8, 9,
investments at fair value. 12, 13, 15, 10, 11,
12
16, 17,
6. Explain the equity method of 9 13, 14, 17, 6, 8
accounting and compare it to the fair 18
value method for equity investments.
7. Discuss the accounting for 10 19, 20
impairments of debt investments.
8. Describe the accounting for transfer of 11
investments between categories.
*9. Explain who uses derivatives and why.
*10. Understand the basic guidelines for
accounting for derivatives.
*11. Describe the accounting for derivative 21, 25 12, 13,
financial instruments. 14
*12. Explain how to account for a fair value 22, 24 15, 17
hedge.
*13. Explain how to account for a cash flow 23, 26 16
hedge.
17-2 Copyright © 2014 John Wiley & Sons, Inc. Kieso, IFRS, 2/e, Solutions Manual (For Instructor Use Only)
about:blan 2/
k 80
,10/15/24, 9:40 Kieso IFRS2e SM Ch17 - Solution Manual for book exercise
AM intermediate a…
ASSIGNMENT CHARACTERISTICS TABLE
Item Level Time
of (minutes
Description Difficult )
y
E17-1 Investment classifications. Simple 5–10
E17-2 Debt investments. Simple 10–15
E17-3 Debt investments. Simple 15–20
E17-4 Debt investments. Simple 10–15
E17-5 Debt investments. Simple 10–15
E17-6 Fair value option. Simple 5–10
E17-7 Fair value option. Moderate 15–20
E17-8 Entries for equity investments. Simple 10–15
E17-9 Equity investments. Simple 10–15
E17-10 Equity investment entries and reporting. Simple 5–10
E17-11 Equity investment entries and financial Simple 10–15
statement presentation.
E17-12 Equity investment entries. Simple 20–25
E17-13 Journal entries for fair value and equity methods. Simple 15–20
E17-14 Equity method. Moderate 10–15
E17-15 Equity investments—trading. Moderate 10–15
E17-16 Equity investments—trading. Moderate 15–20
E17-17 Fair value and equity method compared. Simple 15–20
E17-18 Equity method. Simple 10–15
E17-19 Impairment. Moderate 15–20
E17-20 Impairment. Moderate 10–15
*E17-21 Derivative transaction. Moderate 15–20
*E17-22 Fair value hedge. Moderate 20–25
*E17-23 Cash flow hedge. Moderate 20–25
*E17-24 Fair value hedge. Moderate 15–20
*E17-25 Call option. Moderate 20–25
*E17-26 Cash flow hedge. Moderate 25–30
P17-1 Debt investments. Moderate 20–30
P17-2 Debt investments, fair value option. Moderate 30–40
P17-3 Debt and equity investments. Moderate 25–30
P17-4 Debt investments. Moderate 25–35
P17-5 Equity investment entries and disclosures. Moderate 25–35
P17-6 Equity investments. Simple 25–35
P17-7 Debt investment entries. Moderate 25–35
P17-8 Fair value and equity methods. Moderate 20–30
P17-9 Financial statement presentation of equity investments. Moderate 20–30
Copyright © 2014 John Wiley & Sons, Inc. Kieso, IFRS, 2/e, Solutions Manual (For Instructor Use Only) 17-3
about:blan 3/
k 80
, 10/15/24, 9:40 Kieso IFRS2e SM Ch17 - Solution Manual for book exercise
AM intermediate a…
ASSIGNMENT CHARACTERISTICS TABLE (Continued)
Item Level Time
of (minutes
Description Difficult )
y
P17-10 Equity investments. Complex 30–40
P17-11 Investments—statement presentation. Moderate 20–30
*P17-12 Derivative financial instrument. Moderate 20–25
*P17-13 Derivative financial instrument. Moderate 20–25
*P17-14 Free-standing derivative. Moderate 20–25
*P17-15 Fair value hedge interest rate swap. Moderate 30–40
*P17-16 Cash flow hedge. Moderate 25–35
*P17-17 Fair value hedge. Moderate 25–35
CA17-1 Issues raised about investments. Moderate 25–30
CA17-2 Equity investments. Moderate 25–30
CA17-3 Financial statement effect of investments. Simple 20–30
CA17-4 Equity investments. Moderate 20–25
CA17-5 Investment accounted for under the equity method. Simple 15–25
CA17-6 Equity investments. Moderate 25–35
CA17-7 Fair value. Moderate 25–35
17-4 Copyright © 2014 John Wiley & Sons, Inc. Kieso, IFRS, 2/e, Solutions Manual (For Instructor Use Only)
about:blan 4/
k 80
