Under IFRS, Companies Have a Choice on the Classification of Interest

question 152

Multiple Choice

Under IFRS, companies have a choice on the classification of interest received. Which of the following outlines the choice?

• A) Interest received must be included in operating activities.
• B) Interest received must be included in either operating or financing activities.
• C) Interest received must be included in either operating or investing activities.
• D) Interest received must be included in investing activities.

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Definitions:

Unions

Organizations formed by workers to collectively negotiate with employers regarding wages, working conditions, and other employment rights and benefits.

Merit Pay

A compensation strategy that rewards employees based on their performance, often used as an incentive for higher productivity and job satisfaction.

Public Sector

The part of the economy composed of both public services and public enterprises, managed and financed by the government.

Piece Rates

A pay system where employees are compensated based on the amount of work completed, such as the number of items produced or tasks finished.