Which of the Following Statements Is Incorrect? Under AASB 139

question 6

Multiple Choice

Which of the following statements is incorrect? Under AASB 139:

• A)debentures must initially be recorded at fair value
• B)transactions costs must never be incorporated into the carrying amount of debentures
• C)in the case of par issues the fair value is usually the same as the par amount
• D)premium or discount on issue should not be recognised as a revenue or expense in the period in which the debenture is issued

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Definitions:

Wrongdoers

Individuals or entities that commit acts against the law or ethical standards.

Emotional Distress

A legal claim for damages that arise from suffering severe anguish or trauma, not necessarily accompanied by physical harm.

Restatement

A rewritten or revised statement that clarifies, updates, or explains legal principles or statutes, often used to consolidate and simplify legal understanding.

Outrageous

Behavior or actions that are shocking, excessive, or beyond the bounds of decency or acceptable standards.