As Per IFRS 11, Which of the Following Statements Is

question 37

Multiple Choice

As per IFRS 11, which of the following statements is true of the joint arrangement?

• A)IFRS 11 is silent about joint arrangements.
• B)In regard to joint venture accounting, IFRS 11 is quite different from U.S.GAAP.
• C)IFRS 11 does not allow revaluation of assets.
• D)A joint arrangement is either a joint operation or a joint venture.

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Definitions:

Yield to Maturity

The total return anticipated on a bond if the bond is held until it matures, reflecting interest payments and price changes.

Price Yield Curve

A graph that shows the relationship between the yield of bonds and their maturities, illustrating how interest rates affect bond prices.

Convexity

A measure of the curvature in the relationship between bond prices and bond yields that demonstrates how the duration of a bond changes as the interest rate changes.

Modified Duration

A measure that estimates the price sensitivity of a bond to a one percent change in interest rates, adjusting for the changing yield to maturity.