Which of the Following Statements Is Incorrect When a Company

question 18

Multiple Choice

Which of the following statements is incorrect when a company chooses the fair value option for its receivables?

• A) Receivables are recorded at fair value in the statement of financial position.
• B) Unrealized holding gains and losses from fair value adjustments are reported as a component of comprehensive income.
• C) The International Accounting Standards Board believes that fair value measurement for financial instruments provides more relevant and understandable information than historical cost.
• D) An unrealized holding gain or loss is the net change in the fair value of the receivable from one period to another, exclusive of interest revenue recognized but not recorded.