Accounting for Investments, Volume 2: Fixed Income Securities and Interest Rate Derivatives—A Practitioner's Guide
by R. Venkata Subramani
QUESTIONS
Theory questions
1. Define a fixed income security.
2. What is meant by bond maturity and bond pricing?
3. What are the different yield measures usually identified by an investor?
4. What is meant by bond duration?
5. What is meant by corporate bond and municipal bond?
6. What are the risks associated with an investment in bonds?
7. What are financial instruments? How are those categorized as per the accounting standard?
8. What are the four categories of financial instruments? Enumerate the major changes made in the realm of financial instruments through IFRS 9.
1IFRS 9 is the first part of Phase 1 of the IASB’s project to replace IAS 39. Financial Instruments: Classification and Measurement, which is Phase 1, was published in July 2009 and contains proposals for both assets and liabilities within the scope of IAS 39. An entity shall apply IFRS 9 for annual periods beginning on or after 1 January 2013. Earlier application is permitted. If an entity applies this IFRS in its financial statements for a period beginning before 1 January 2013, it shall disclose that fact.
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