How Would the Equity Portion of the Compound Instrument Be

question 55

Multiple Choice

How would the equity portion of the compound instrument be recorded?

• A)Once separated,this component is accounted for at fair value through profit or loss.
• B)Once separated,this component is accounted for in accordance with its substance.
• C)Once separated,this component is accounted for amortized cost.
• D)Once separated,this component is accounted for at historical cost.

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Definitions:

Structure

It is the arrangement or framework of parts within a system, determining how those parts are organized and work together.

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The process of exchanging information, feelings, and meaning through verbal and non-verbal messages in face-to-face settings.

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The organized pattern of social relationships and social institutions that together compose society.