When the Value of a Company's Financial Liabilities Has Increased

question 117

True/False

When the value of a company's financial liabilities has increased in part due to a change in market rates and in part due to an improvement to the company's credit rating, the entire change in the fair value of the instrument is debited to AOCI.

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Definitions:

Proportional Tax

A tax system where the tax rate remains constant regardless of the amount subject to tax, meaning everyone pays the same proportion of their income.

Regressive Tax

A tax imposed in such a manner that the tax rate decreases as the amount subject to taxation increases, disproportionately affecting lower-income individuals.

Interactional Justice

Refers to the quality of the interpersonal treatment people receive when a decision is implemented.

Procedural Justice

Refers to perceptions that the process used to determine the outcomes were fair.