The Provisions of IFRS Require Firms to Classify Marketable Securities

question 67

Multiple Choice

The provisions of IFRS require firms to classify marketable securities into which of the following categories except

• A)held to maturity investments for which a firm has both the intent and the ability to hold to maturity-shown on the balance sheet at an amount based on acquisition cost, but subject to impairment.
• B)debt and equity securities held as financial assets at fair value through profit or loss, shown on the balance sheet at fair value, with changes in fair value of securities held at the end of the accounting period reported each period in net income.
• C)debt and equity securities held as available-for-sale financial assets, shown on the balance sheet at fair value, with unrealized changes in fair value of securities held at the end of the accounting period included in other comprehensive income, and realized changes in fair value included in net income when a firm sells the securities.
• D)debt and equity securities held as available-for-sale financial assets, shown on the balance sheet at fair value, with changes in fair value of securities held at the end of the accounting period reported each period in net income.
• E)choices a and b, only.

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Definitions:

Desirable Behavior

Represents actions or conducts that are considered preferable, appropriate, or beneficial within a given societal, cultural, or organizational context.

Sexual Violence

Acts of a sexual nature committed against someone without their consent, encompassing a range of behaviors from harassment to assault.

Social Classes

Divisions of a society based on social and economic status, often determining access to resources and opportunities.

Exploitation

The act of taking unfair advantage of someone or a group of people, often by using power unjustly for personal gain.