IFRS 9 Quizzzz - Audit Rabobank - Najaar 2017

Question 1

Contractual terms like prepayment/extension options always cause to fail the SPPI test

Accepted Answer

No

Question 2

Reclassifications can only occur for investments in debt instruments.

Accepted Answer

yes

Question 3

A benchmark instrument for the SPPI test is a standard instr. with the same contractual term

Accepted Answer

no

Question 4

Most financial liabilities are measured at FVPL.

Accepted Answer

No

Question 5

Rabobank will be ready for IFRS 9 as per January 1, 2018

Accepted Answer

not sure

Question 6

The general model has 3 stages that reflect the pattern in credit deterioration of a FI.

Accepted Answer

yes

Question 7

The ECL model relies on the relative assessment of credit risk since initial recognition

Accepted Answer

yes

Question 8

KPIs of HTC&S business model are interest yield, impairment charges, and fair value changes.

Accepted Answer

Yes

Question 9

A HTC business model means that certain sales are allowed to take place

Accepted Answer

Yes

Question 10

IFRS 9 switches from many incurred loss models of IAS 39 to many expected loss models.

Accepted Answer

no

Question 11

When measuring ECL, collateral and other credit enhancements should be considered

Accepted Answer

Yes

Question 12

The calculation of ECL takes into account the same PD that is used for regulatory purposes

Accepted Answer

no

Question 13

For financial assets an impairment should be considered for those measured at AC or at FVOCI.

Accepted Answer

Yes

Question 14

The assessment of a bank’s business model should be performed also under “worst” case scenario.

Accepted Answer

No

Question 15

Equity instrument on “hold to collect” business model and passing the SPPI tests may be at AC

Accepted Answer

No

Question 16

For purchased or originated credit-impaired FI, a 12m ECL is booked at initial recognition.

Accepted Answer

no

Question 17

For stage 2 FI, lifetime ECL are recognised, interest is still calculated on the gross amount

Accepted Answer

yes

Question 18

A breach of contract would normally results in the FI moving to Stage 3 of the general model.

Accepted Answer

yes

Question 19

LECL are the ECLs that result from all possible default events over the life of the FI.

Accepted Answer

yes

Question 20

FVPL is possible within a HTC or HTC&S model, without any specific criteria that has to be met.

Accepted Answer

No

Question 21

A change in the business model is infrequent.

Accepted Answer

Yes

Questions 21