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NEW QUESTION: 1

A. Option A
B. Option C
C. Option B
Answer: B

NEW QUESTION: 2
What protecs MacSec Frame ?
A. MKA
B. ICV
Answer: A

NEW QUESTION: 3
In November of the current year, the vice-president of a local bank reviews the bank's mortgage portfolio prior to the December 31 year-end. The bank's largest client has mortgages on buildings in three cities. The client has incurred net losses for the past 3 years and is now experiencing serious cash flow problems. For the past 6 months, no payments have been made on any of the three mortgages. The vice-president reluctantly concludes that it is probable that the full amount of principal and interest will not be collected. What is the impact of this conclusion on the local bank's current year financial statements?
A. The carrying amount of the mortgages should be reduced, with a charge directly to retained earnings.
B. Contingency note disclosure of a possible impairment is required.
C. No accounting or disclosure of a possible loss in value is necessary.
D. The carrying amount of the mortgages should be reduced, with a charge to the income statement
Answer: D
Explanation:
A financial asset, such as a lender's mortgage receivable, is impaired if its carrying amount at the balance sheet date exceeds its estimated recoverable amount If it is probable that all amounts due on such a held-to-maturity investment a financial asset carried at amortized cost) cannot be collected, the loss should be included in profit or loss_ The loss equals the difference between the carrying amount and the present value of the expected future cash flows discounted at the original effective interest rate. The carrying amount of the asset should be reduced to its estimated recoverable amount directly or by crediting an allowance account.

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