Which of the Following Items Does Not Give Rise to a Reclassification

question 13

Multiple Choice

Which of the following items does not give rise to a reclassification adjustment from components of other comprehensive income to profit and loss?

• A) Disposal of a foreign operation;
• B) De-recognition of revalued assets;
• C) Sale of a foreign subsidiary;
• D) De-recognition of available-for sale financial assets;
• E) Cash flow hedge forecast transaction that affects profit or loss.

Comprehend the reasons borrowers value money and the purposes for which they seek loans.

Understand the relationship between interest rates, investment decisions, and the demand for loanable funds.

Interpret how changes in interest rates affect the behavior of borrowers and lenders in the marketplace.

Understand the basic concepts of the loanable funds theory including supply and demand dynamics.

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Definitions:

Containment Doctrine

A foreign policy strategy adopted by the United States during the Cold War aiming to prevent the spread of communism by providing political, military, or economic assistance to threatened nations.

Marshall Plan

A U.S.-initiated program aimed at the economic recovery of war-torn Europe post World War II, through significant financial aid and rebuilding efforts.

Western Europe

A region comprising the western part of Europe, known for its advanced economies, democratic institutions, and historical influence on global affairs.

Economic Integration

The unification of economic policies between different states through the partial or full abolition of tariff and non-tariff restrictions on trade taking place among them.