Which Statement Is Correct About Offsetting

question 13

Multiple Choice

Which statement is correct about offsetting?

• A)Offsetting generally provides decision-useful information for financial statement users.
• B)Offsetting aids in financial statement user's ability to correctly interpret financial results.
• C)Offsetting is generally prohibited under IFRS,unless it is specifically required.
• D)Offsetting is required under IFRS when there is a legally enforceable right of offset.

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Definitions:

Activity Levels

The amount of effort or capacity utilized in the operations of a business, which can influence cost and operational efficiency.

Bonds Issued

The process of a corporation or government raising funds by selling bonds to investors.

At a Discount

Selling or buying something for less than its nominal or face value.

At a Premium

When a security is traded above its face value or nominal value.