Under IFRS,firms May Elect the Fair Value Option Only in Cases

question 85

True/False

Under IFRS,firms may elect the fair value option only in cases where it eliminates an accounting mismatch or when a group of assets is managed and evaluated using fair values.

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Definitions:

Group Decision Making

The process by which multiple individuals come together to analyze problems, consider various solutions, and collectively make decisions, often involving compromise or consensus.

Advantages

The favorable conditions or benefits that make a specific situation or choice preferable over others.

Participation

The act of taking part or becoming involved in an activity or event, often contributing to a collective goal.

Effects

Refers to the outcomes or changes resulting from a specific cause or action.