BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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FVPL AND AMORTIZED COST
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FVOCI AND AMORTIZED COST
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FVPL, FVOCI AND AMORTIZED COST
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FVPL AND FVOCI
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Detailed explanation-1: -Loans and receivables, held-to-maturity investments, and non-derivative financial liabilities should be measured at amortised cost using the effective interest method.
Detailed explanation-2: -Held-to-maturity debt securities are reported at amortized cost. This is due to the securities being held to collect contractual cash flows.
Detailed explanation-3: -The FVOCI measurement category recognises information in Profit and Loss as if the financial asset were measured at amortised cost (the amounts that are recognised in profit or loss are the same as the amounts that would have been recognised in profit or loss if the financial asset had been measured at amortised cost).
Detailed explanation-4: -Amortised cost-a financial asset is measured at amortised cost if both of the following conditions are met: the asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows; and.