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2 the fair value option a must be applied to all debt

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2.The fair value optiona.Must be applied to all debt instruments.b.May be selected as a valuation method at any time.c.Reports all gains and losses in income.d.All of the choices are correct.
3.The fair valueoption allows an entity to
4.Under what condition can an entity classify financial asset that meets the amortized costcriteria as at fair value through profit and loss?or
4. BPFRS 9, paragraph 4.1.5, provides that an entity at initial recognition mayirrevocably designatea financial asset as measured at fair value through profit or loss if doing so eliminates orsignificantly reduces a measurement or recognition inconsistency referred to as an “accountingmismatch”.Under the fair value option,all changes in fair value are recognized in profit or loss.Moreover, the interest income is recognized using the nominal interest rate rather than theeffective interest rate.
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