AASB 139 Requires That,subsequent to Initial Recognition,financial Liabilities Other Than

question 5

Multiple Choice

AASB 139 requires that,subsequent to initial recognition,financial liabilities other than those designated as at fair value through profit and loss must be measured at amortised cost using the:

• A) effective interest method
• B) nominal interest method
• C) simple interest method
• D) compound interest method

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Definitions:

Wind Up and Terminate

The process of concluding affairs and officially dissolving a business or corporation.

UPA

Uniform Partnership Act, which regulates the operation of partnerships in the absence of express agreement between the partners.

Wrongfully Withdrawing

refers to the act of improperly removing oneself or something from consideration, possession, or use without legal justification or authority.

Force Liquidation

The process of quickly selling off assets or securities, typically at lower prices, often initiated by creditors or regulatory authorities.