Under IAS 39, Financial Instruments: Recognition and Measurement, Which of the Following

question 7

Multiple Choice

Under IAS 39, Financial Instruments: Recognition and Measurement, which of the following is NOT a category into which a financial asset must be classified?

• A)Property, plant, and equipment
• B)Held-to-maturity investments
• C)Loans and receivables
• D)Available-for-sale financial assets

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Definitions:

Real Estate Professional

An individual who spends the majority of their working hours in real property businesses, meeting specific IRS criteria.

Passive Activity

Financial activities in which the taxpayer does not materially participate, often generating passive income or losses for tax purposes.

Rental Losses

Financial losses incurred from renting out property, often deductible under specific conditions on a taxpayer's return.

Active Income

Earnings received from direct labor or active business activities, as opposed to passive income from investments.