Which of the Following Is Not True About the "Fair

question 67

Multiple Choice

Which of the following is not true about the "fair value through profit and loss" approach for accounting for investments under IFRS?

• A) Allowed under both IAS No. 39 and IFRS No. 9.
• B) Includes unrealized holding gains in earnings.
• C) Requires reclassification of realized gains from other comprehensive income.
• D) Not vulnerable to other-than-temporary impairments.

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Definitions:

Manufacturing Overhead

The indirect costs associated with manufacturing a product, including expenses like utilities, maintenance, and factory equipment.

Activity-Based Costing

A method of costing that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by each.

Fabrication Activity Cost Pool

A grouping of all the costs associated with the fabrication activities in a manufacturing process, used in activity-based costing.

Idle Capacity

Idle capacity refers to the unused portion of the total capacity of a manufacturing unit which could otherwise be used to produce goods and generate revenue.