1. What statement is incorrect? a. Under PFRS 9, the basis of carrying investments in debt securities as FVPL, FVOCI, or at amortized cost, is the entitys business model b. Under PFRS 9, an investment in equity securities not held for trading is automatically accounted for as FVOCI c. Reclassification of investment in equity securities under PFRS 9 is not allowed d. Under PFRS 9, reclassification of investment in debt securities is allowed e. None of the above

2. Under PFRS 9 for investment in equity securities carried as FVOCI, the difference between the carrying value of the investment and its related cumulative unrealized gain or loss-OCI is its: a. unrealized gain or loss reported as a component of OCI for the period b. amortized cost c. initial cost d. unrealized gain or loss reported under profit or loss for the period

3. A firm with an investment in debt securities carried as FVOCI, deemed its original business model as not applicable starting November 30, 2020, and decided to reclassify its investment as FVPL. Which statement is correct? a. The reclassification shall be made on January 1, 2021; the investment is transferred at fair value from FVOCI to FVPL; the cumulative gain or loss previously recognized in OCI is transferred to retained earnings b. The reclassification shall be made on November 30, 2020; the investment is transferred at fair value from FVOCI to FVPL; the cumulative gain or loss previously recognized in OCI is transferred to retained earnings c. The reclassification shall be made on November 30, 2020; the investment is transferred at fair value from FVOCI to FVPL; the cumulative gain or loss previously recognized in OCI is transferred to profit or loss d. The reclassification shall be made on January 1, 2021; the investment is transferred at fair value from FVOCI to FVPL; the cumulative gain or loss previously recognized in OCI is transferred to profit or loss