Identify Which of the Following Financial Instruments Are Required Under

question 23

Multiple Choice

Identify which of the following financial instruments are required under AASB 139 Financial Instruments: Recognition and Measurement to be measured at fair value through profit and loss:
$\begin{array}{|l|l|}\hline \text { I } & \text { Loans receivable } \\\hline \text { II } & \text { Shares held for trading } \\\hline \text { III } & \text { Loans payable } \\\hline \mathrm{IV} & \text { Favourable derivative instruments } \\\hline V & \text { Unfavourable derivative instruments } \\\hline\end{array}$

• A) I, II and III
• B) I, II and IV
• C) II, III and IV
• D) II, IV and V

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Definitions:

Fixed Manufacturing Expenses

Costs that do not vary with production volume, such as rent, salary of permanent staff, and equipment depreciation.

Fixed Selling

Fixed selling refers to the portion of selling costs that remains unchanged regardless of the volume of goods or services sold.

Financial Advantage

A benefit or edge gained in financial terms, such as lower costs, higher revenues, or investment returns, that contributes to better financial health.

Contribution Margin

The amount of revenue left after deducting all variable costs, indicating the contribution towards covering fixed costs and generating profit.