An Agreement to Swap a Fixed Interest Payment for a Floating

question 15

Multiple Choice

An agreement to swap a fixed interest payment for a floating interest payment would be considered a/an:

• A) currency swap.
• B) forward swap.
• C) interest rate swap.
• D) none of the above

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Definitions:

International Financial Reporting Standards

A set of accounting standards developed by the International Accounting Standards Board (IASB) that is global in scope.

International Accounting Principles

Frameworks and rules for financial reporting that are accepted or practiced globally, designed to ensure transparency and comparability across international boundaries.

IFRICs

Interpretations issued by the IFRS Interpretations Committee, providing guidance on the application of International Financial Reporting Standards.

IFRS Accounting Policies

The specific principles, bases, conventions, rules, and practices applied by an entity in preparing and presenting financial statements under International Financial Reporting Standards.