Why Is a Purely Financial Transaction Not Necessarily Counted as Part

question 11

Essay

Why is a purely financial transaction not necessarily counted as part of gross domestic product?

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Definitions:

Carrying Value

The recorded book value of an asset in a company's financial statements, calculated as the original cost minus accumulated depreciation or amortization.

Recoverable Amount

The estimated amount that can be recovered from an asset's sale or use, typically higher than its net book value.

Canadian GAAP

Generally Accepted Accounting Principles in Canada, a set of standards for financial reporting and accounting.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that serve as a global framework for preparing financial statements.