1.An outcome of the global financial crisis has been criticism of requirements in accounting standards to measure financial instruments at fair value.’ Discuss.
2.(a) Distinguish between futures contracts and forward contracts.
(b) Distinguish between futures contracts and option contracts.
3. Distinguish a call option from a put option. 4. What is a currency swap? Give an example of a currency swap. Why do entities engage in such arrangements? 5. AASB 7 provides for extensive disclosure of information on financial instruments. What is the purpose of these requirements?