Once an Entity Elects to Value a Class of Assets

question 4

True/False

Once an entity elects to value a class of assets using fair value it can switch back to cost basis measurement as long as there is justifiable reason.

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Definitions:

Repriced

Adjusted to a new price level, often in the context of securities, goods, or services to reflect changes in market conditions.

European Call Option

A European call option is a type of options contract that gives the holder the right, but not the obligation, to buy an underlying asset at a specific price only on the expiration date.

Specified Date

A specific calendar date agreed upon as relevant or due for a particular activity or event.

Specified Price

Another term for Strike Price, indicating the predetermined price involved in a contractual agreement.