Q1 Which of the following statements relating to financial instruments is not correct:

a.

Derivative instruments include forward exchange contracts

b.

A convertible note with the conversion option to issue shares is a financial liability

c.

They may relate to singular instruments or a combination of instruments

d.

Primary instruments include receivables and payables

Q2 AASB 119 requires an entity to record a liability for long service leave:

a.

when the leave is taken by the employee.

b.

when the employee becomes legally entitled to the leave.

c.

in a consistent manner from year to year.

d.

as the employee provides service to the entity even though they may have no legal entitlement to the leave.