Which of the Following Is Not True About the "Fair

question 77

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 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:

Invisible Hand

A concept introduced by Adam Smith to describe the self-regulating nature of the market economy.

Economist

A professional who studies the production, distribution, and consumption of goods and services.

Economic Activity

Activities related to the creation, distribution, and use of goods and services in an economic system.

Market Economy

An economic system in which economic decisions and the pricing of goods and services are guided solely by the interactions of citizens and businesses.