The disclosure note of HOSA Products Limited showed the following (in millions):

1. Define financial instrument and financial asset.
2. With respect to cash, explain why the asset is classified as FVTPL. Under what circum-stances would the fair value of cash change from the originally recognized value?
3. What is the definition of a cash equivalent?
4. With respect to accounts receivable, explain the difference between the accounting treatment of financial instruments classified as FVTPL and those classified as amortized cost. Why are some elements likely placed in one category versus the other?
5. What is the most likely reason that fair value and amortized cost areequivalent?

  • CreatedFebruary 17, 2015
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