Under IFRS, a Company May Select the Fair Value Option

question 19

True/False

Under IFRS, a company may select the fair value option or amortized cost for valuing its receivables at each statement of financial position date.

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Definitions:

Novation

A legal process where a new contract replaces an existing one, transferring rights and obligations from the original party to a new one.

Heavy-duty Equipment

Machines or vehicles that are designed for executing complex tasks or operations, often in construction or industrial settings, capable of handling a high level of demand or strain.

Misrepresentation

A false statement or misleading omission made by one party that induces another to enter into a contract.

Threat of Violence

The expression of an intention to inflict pain, injury, damage, or other hostile action on someone in an effort to intimidate or coerce.