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.

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Definitions:

Equity

Fairness or justice in the way people are treated within the economy, often in terms of the distribution of wealth.

Efficient Share

The optimal allocation or distribution of resources and goods in a way that maximizes productivity and utility without waste.

Efficiently Used

Utilized in a manner that maximizes productivity or effectiveness while minimizing waste or unnecessary expenditure of resources.

Scarcity

The fundamental economic problem of having seemingly unlimited human wants in a world of limited resources.