CAF-6 · Chapter 2 · Question 12 of 15
While most financial liabilities are classified and measured at amortised cost, under what circumstance would a financial liability be measured at fair value?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) If the liability is held for trading or to eliminate an accounting mismatch.
Explanation
Financial liabilities are typically measured at amortised cost, with exceptions for those held for trading, held for hedging, or designated at FVPL to eliminate an accounting mismatch.
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