Smart-T Corporation Purchased an Investment in April for $10,000

question 17

True/False

Smart-T Corporation purchased an investment in April for $10,000.If Smart-T Corporation sold this investment on May 30^th for $12,000.They would have a realized gain.

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Definitions:

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that is globally accepted.

Fair Value

The price at which an asset or liability could be exchanged between knowledgeable, willing parties in an arm's length transaction.

Spot Rates

The existing selling or buying price of a certain asset that is ready for instant delivery.

IFRS 9

International Financial Reporting Standard 9, dictating the accounting for financial instruments, including recognition, measurement, and impairment of assets.