In Disclosing Information About How a Financial Asset or Financial

question 50

Multiple Choice

In disclosing information about how a financial asset or financial liability meets the conditions to be classified as 'at fair value through profit and loss',an entity must have a narrative description of how this designation is consistent with:

• A)industry practice.
• B)its own documented investment strategy.
• C)The Chartered Institute of Securities and Investments CISI requirements.
• D)the law.

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Definitions:

Tchebysheff's Theorem

A theorem that states for any real numbers k > 1, at least (1-1/k^2) of the data values fall within k standard deviations of the mean for any distribution.

Empirical Rule

A statistical rule stating that for a normally distributed dataset, about 68% of values fall within one standard deviation, 95% within two, and 99.7% within three standard deviations from the mean.

Tchebysheff's Theorem

A mathematical formula that determines the minimum proportion of values that lie within a specified number of standard deviations from the mean, for any distribution.

Mound-Shaped

Mound-shaped describes a symmetrical, bell-shaped distribution of data points, indicative of a normal distribution.