To Calculate the Amount of Interest to Recognize Each Period

question 65

Multiple Choice

To calculate the amount of interest to recognize each period for a bond investment (unless it held for trading purposes) ,

• A) ASPE requires the use of the effective-interest method.
• B) IFRS requires the use of the effective-interest method.
• C) IFRS allows the use of either the effective-interest or the straight-line method.
• D) ASPE requires the use of the straight-line method.

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