5. According to PFRS 9, on initial recognition, the entity has theoption of designating financial assets to be measured at FvrL a. if doing so enhances the qualitative characteristic offinancial information presented in the financial statements.b. if doing so significantly reduces or eliminates "accountingmismatch."c. if it is required by "shadow accounting.d. at the entity's management's absolute discretion.

According to PFRS 9, there is an option available to measure the financial assets at FVPL at the…

Answered: 5. According to PFRS 9, on initial…

5. According to PFRS 9, on initial recognition, the entity has the option of designating financiel assets to be measured at FVPL

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

5. According to PFRS 9, on initial recognition, the entity has the
option of designating financial assets to be measured at FvrL

a. if doing so enhances the qualitative characteristic of
financial information presented in the financial statements.
b. if doing so significantly reduces or eliminates "accounting
mismatch."
c. if it is required by "shadow accounting.
d. at the entity's management's absolute discretion.

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