AASB 139 Stipulates How Financial Instruments Are to Be Recognised

question 15

True/False

AASB 139 stipulates how financial instruments are to be recognised and measured.Specifically these instruments could be:
A. Recorded at their fair value with any changes included in the period's profit or loss unless the instrument was acquired as a hedge.
B. Recorded at fair value with any changes recorded directly to equity and only transferred to profit when the asset is derecognised.
C. Measured and amortised at cost using the effective interest method.
D. All of the given answers.
E. Recorded at fair value with any changes recorded directly to equity and only transferred to profit when the asset is derecognised and measured and amortised at cost using the effective interest method.

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Definitions:

Book Value

The net value of a company's assets minus its liabilities, as recorded on the balance sheet.

Poison Pill

A defensive strategy used by corporations to deter hostile takeovers by making the company less attractive to the potential acquirer.

Control

In a business context, the ability to direct the management and policies of a company, often through the ownership of a majority of shares.

Shareholders

Individuals or entities that own one or more shares of stock in a corporation, thus having partial ownership and interest in the company.