Which of the Following Statements Is Correct About the Fair

question 78

Multiple Choice

Which of the following statements is correct about the fair value option under IFRS?

• A) The fair value method increases volatility in retained earnings.
• B) Using the fair value method promotes mismatches because assets and liabilities are measured under different bases.
• C) IFRS does not allow fair value reporting for investments under the equity method.
• D) IFRS allows a company to revoke the fair value option at any time.

---

Definitions:

Public Welfare Agencies

Government organizations responsible for providing social services to individuals and families in need, including financial aid, healthcare, and housing assistance.

Male Infertility

A condition in men where the quantity or quality of sperm affects the ability to conceive a child.

Sluggish Sperm

Sluggish sperm refers to sperm with reduced motility, potentially impacting fertility by decreasing the likelihood of successful fertilization of an egg.

Sperm Count

The concentration of sperm in a male's ejaculate, which is a key indicator of male fertility.