10 Under IFRS 9, which of the following is correct regarding reclassification of investments? Group of answer choices A reclassification is necessary if there is a temporary disappearance of a particular market for the instrument. a reclassification may be made as a result of change in management’s intention for holding the asset. If a financial services entity decides to shut down its retail mortgage business and is now actively trading its portfolio of debt, reclassification from fair value to amortized cost is appropriate. When a company with debt investment classified as amortize cost was acquired by an entity that is actively trading all its financial instruments, reclassification from amortized cost to fair value through profit or loss is appropriate. A reclassification is allowed if there is a transfer of assets between existing business models.
10 Under IFRS 9, which of the following is correct regarding reclassification of investments? Group of answer choices A reclassification is necessary if there is a temporary disappearance of a particular market for the instrument. a reclassification may be made as a result of change in management’s intention for holding the asset. If a financial services entity decides to shut down its retail mortgage business and is now actively trading its portfolio of debt, reclassification from fair value to amortized cost is appropriate. When a company with debt investment classified as amortize cost was acquired by an entity that is actively trading all its financial instruments, reclassification from amortized cost to fair value through profit or loss is appropriate. A reclassification is allowed if there is a transfer of assets between existing business models.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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10
Under IFRS 9, which of the following is correct regarding reclassification of investments?
Group of answer choices
A reclassification is necessary if there is a temporary disappearance of a particular market for the instrument.
a reclassification may be made as a result of change in management’s intention for holding the asset.
If a financial services entity decides to shut down its retail mortgage business and is now actively trading its portfolio of debt, reclassification from fair value to amortized cost is appropriate.
When a company with debt investment classified as amortize cost was acquired by an entity that is actively trading all its financial instruments, reclassification from amortized cost to fair value through profit or loss is appropriate.
A reclassification is allowed if there is a transfer of assets between existing business models.
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