All of the Following Are Not True Regarding the Market

question 64

Multiple Choice

All of the following are not true regarding the Market Adjustment - FVPL account except?

• A)the account is only adjusted at the end of the accounting period.
• B)a debit balance in the account is substracted from the cost of the investments so that the investments are reported at fair value.
• C)the account is adjusted for the difference between the investments' fair value and cost.
• D)if the total cost of the securities is greater than the total fair value, the account will be credited.

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Definitions:

Material Events

Significant events that are likely to influence financial decisions or valuations of investors and analysts, requiring prompt disclosure by the entity involved.

Legal Action

Involves seeking remedy or resolution through judicial processes, including lawsuits or litigation, typically to enforce or protect legal rights or settle disputes.

Valuation

The process of determining the present value of an asset or company based on earnings, assets, and other relevant factors.

AASB 110

The Australian Accounting Standards Board standard that provides the guidelines for the treatment of events after the reporting period, including their recognition and disclosure in financial statements.