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IFRS Allows the Fair Value Option for Liabilities Only to Eliminate

question 42

True/False

IFRS allows the fair value option for liabilities only to eliminate or significantly reduce the "mismatch" that arises when different measurement bases are used for related financial instruments.


Definitions:

Profitability Index

A capital budgeting tool that measures the ratio of the present value of future cash flows from an investment to the investment's initial cost.

Mutually Exclusive

Situations or events that cannot both occur at the same time.

Net Present Value

A financial metric that calculates the present value of all cash flows, both incoming and outgoing, of an investment.

Managers

People in charge of managing or overseeing any or all parts of a corporation or comparable entity.

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