Which of the Following Statement Is Incorrect When a Company

question 134

Multiple Choice

Which of the following statement 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.

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