The Purpose of IAS 39 Is to Prescribe Standards for Derivatives

question 5

True/False

The purpose of IAS 39 is to prescribe standards for derivatives accounting for foreign currency transactions.

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Definitions:

EBIT

A profitability metric that accounts for all of a company's expenses except for interest and income taxes, reflecting the firm's profit.

Accounts Receivable

sums of money owed to a company by customers for goods or services delivered or used but not yet paid for.

Inventory

The total amount of goods and materials held by a business for the purpose of resale, production, or repair.

Total Equity Value

The total value of all shareholder equity in a company, calculated as the market value of total assets minus total liabilities.