Under IAS 39, Financial Instruments, Which of the Following Terms

question 47

Multiple Choice

Under IAS 39, Financial Instruments, which of the following terms describes the removal of a financial asset or liability from the balance sheet when certain appropriate criteria have been met?

• A) Decoupling
• B) Extinguishment
• C) Derecognition
• D) Reversal

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Definitions:

Preoperational Stage

A stage in Jean Piaget's theory of cognitive development, occurring approximately between the ages of 2 and 7, characterized by symbolic thinking and egocentrism but a lack of operational logic.

Decenter

In Piaget’s terminology, to think simultaneously about several aspects of a situation.

Piaget

Jean Piaget, a Swiss psychologist renowned for his work in child development and his theory of cognitive stages.

Situation

Refers to a set of circumstances or a scenario in which individuals find themselves, which can affect their actions and decisions.