AASB 9 Requires Subsequent Measurement of a Financial Asset at Amortised

question 8

Multiple Choice

AASB 9 requires subsequent measurement of a financial asset at amortised cost when two tests have been satisfied. Those two tests are:

• A) fair value test; impairment test
• B) fair value test; business model test
• C) fair value test; cash flows characteristics test
• D) business model test; cash flows characteristics test

---

Definitions:

ANOVA Table

A statistical table used to summarize the results of an analysis of variance, showing the sources of variation and their significance.

Critical Value

A threshold in hypothesis testing, which if exceeded by the test statistic, indicates that the null hypothesis can be rejected.

Normally Distributed

A probability distribution that is symmetrical around the mean, showing that data near the mean are more frequent in occurrence.

Equal Variances

The assumption that two or more populations have the same variance.