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:

Manufacturing Defect

Refers to a flaw or imperfection in a product that occurs during its production, potentially making it unsafe or unusable.

"Reasonable"

A term used to denote actions or decisions that are logically sound, based on fair judgment and common sense.

Quality Control

The process of ensuring products and services meet customer expectations and regulatory requirements through consistent monitoring and testing.

Due Care

A standard of diligence that a reasonable person exercises to avoid harm to other persons or their property.