An Entity Holding Both Financial Assets and Liabilities Is Allowed

question 21

Multiple Choice

An entity holding both financial assets and liabilities is allowed to offset and determine fair value on the net position as long as:
I they hold a net long position
II they hold a net short position
III they have a documented risk management strategy
IV the manage the group of net financial assets and liabilities on a net exposure basis
v.transactions are conducted in an orderly market

• A)I and III
• B)II and IV
• C)III and IV
• D)II and V

---

Definitions:

Malformations

Physical or structural abnormalities that deviate from the normal development or formation, often present from birth.

Temperament Categories

Classifications that describe the inherent personality traits of individuals, often based on their emotional and behavioral tendencies.

Difficult Temperament

A behavioral profile in infancy characterized by high levels of negative mood, high activity, and poor adaptation to new situations.

Easy Temperament

A temperament characterised by regularity, adaptability, and a positive mood.