Which of the Following Statements Is TRUE Under IFRS 9

question 32

Multiple Choice

Which of the following statements is TRUE under IFRS 9?

• A) All unrealized gains and losses on equity investments flow through Other Comprehensive Income.
• B) Unrealized gains and losses on FVTPL securities are included in Other Comprehensive Income.
• C) Unrealized gains and losses on equity investments may be included in Other Comprehensive Income only if a decision to do so is made when the investment is acquired.
• D) Other Comprehensive Income is included in Retained Earnings.
• Bloom's

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Definitions:

Sales Discounts

Reductions granted on the selling price of goods or services to encourage prompt payment by the customer.

Cash Collection

The process of gathering and managing payments received from customers.

Discount Period

The period between the issuance of a bill, note, or bond and its maturity date, during which it may be purchased at a reduced price to yield interest upon redemption at full price.

Receivables Turnover Ratio

A financial metric that measures how efficiently a company collects its outstanding receivables over a period, calculated as sales divided by average accounts receivable.