An entity, 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 of the following statements is true?

a. 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

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 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

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

.

2. A 120-day, 15% interest bearing note receivable is discounted to a bank at 18% after being held for 45 days. The proceeds received from the bank upon discounting would be the:

a. Maturity value less discount at 18% for 45 days

b. Maturity value less discount at 15% for 75 days

c. Maturity value less discount at 18% for 75 days

d. Maturity value less discount at 18% for 120 days

.

3. The following items are generally classified as plant assets, except: *

a. Improvements to leased facilities

b. Property being used as a plant site

c. Breeding animals

d. Property held for future plant sites

4. Under PFRS9, investment in equity securities not held for trading are classified as: *

a. FVOCI

b. FVPL

c. FVOCI, if the entity opted to carry as FVOCI, otherwise, carried as FVPL

d. Either FVPL or FVOCI, depending on the entitys business model