AASB 139 Financial Instruments: Recognition and Measurement, Requires That 'Held-To-Maturity

question 12

Multiple Choice

AASB 139 Financial Instruments: Recognition and Measurement, requires that 'held-to-maturity' investments be initially measured at:

• A) fair value.
• B) fair value plus transaction costs.
• C) discounted future cash outflows.
• D) discounted future net cash flows.

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Definitions:

Critical Thinking

The process of objectively analyzing and evaluating an issue to form a judgment.

Specific

Clearly defined or identified; precise or particular in detail.

Step-By-Step Sequence

A detailed process or set of instructions presented in a clear, logical order to follow in order to achieve a specific outcome or complete a task.

Interpretation

The action of explaining the meaning of something or presenting one's own conception of a piece of information or artwork.