According to AASB 13 Fair Value Measurement,an Entity Holding Both

question 32

Multiple Choice

According to AASB 13 Fair Value Measurement,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 they 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

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Definitions:

Capital Contributions

Financial or property assets contributed by owners or partners to a company or partnership to maintain or increase its capital.

Consulting Business

A business that offers expert advice in a particular area, such as management, education, or marketing.

Income Tax Service

A service that involves the preparation and filing of income tax returns for individuals or entities, typically provided by accountants or professional tax preparers.

Management Consulting

The practice of helping organizations to improve their performance, primarily through the analysis of existing business problems and development of plans for improvement.