If a Company Chooses the Fair Value Option for an Asset

question 57

True/False

If a company chooses the fair value option for an asset or liability, all changes in the fair value of the asset (or liability), including unrealized gain and losses, will be included in net income.

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Definitions:

Rule Oriented

A characteristic of behaviors or individuals that strictly follow established guidelines or protocols.

Freud

Sigmund Freud, an Austrian neurologist, pioneered psychoanalysis, a therapeutic approach for addressing mental disorders through conversations between a psychoanalyst and their patient.

Ethical

Pertaining to or dealing with morals or the principles of morality; pertaining to right and wrong in conduct.

Ego Ideal

In psychoanalysis, the part of the mind that serves as a standard for what one wants to achieve in terms of ethics, ambition, and self-regard.