Which of the Following Is One of the Two Steps

question 45

Multiple Choice

Which of the following is one of the two steps of the 2-step test for derecognition of receivables stated in IAS 39,International Accounting Standard 39,"Financial Instruments: Recognition and Measurement"?

• A) The transferred assets have been isolated from the transferor such that the transferor and its creditors cannot access the assets.
• B) The transferee has the right to pledge or exchange the transferred assets.
• C) If the receivable transfer does not involve the transfer of substantially all the risks and rewards of ownership,then test to determine if the transferor maintains effective control over the assets through either an agreement to repurchase the assets before their maturity,or by the ability to cause the transferee to return specific assets.
• D) Determine whether the receivable transfer involves a transfer of substantially all the risks and rewards of ownership of the receivable and,if so,account for the transfer as a sale of the receivable.

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Definitions:

Collective Unconscious

A concept proposed by Carl Jung, referring to the part of the unconscious mind that is derived from ancestral memory and experience common to all humankind.

Word-Association Test

A psychological test in which words are presented to an individual who is asked to respond immediately with the first word that comes to mind, used to uncover unconscious associations.

Presence Of Complex

The existence or identification of a multifaceted issue or problem within a specific context or system.

Slips Of Tongue

are verbal mistakes that are thought to reveal subconscious thoughts or feelings, according to Freudian psychoanalysis.