A financial liability classified as fair value through profit and loss must be:
I $\quad$a derivative (except for a derivative that is a financial guarantee contract or a
$\quad$$\quad$hedging instrument)
II $\quad$acquired principally for the purpose of selling it in the near term
III$\quad$ part of a portfolio of identified financial instruments that are managed together
$\quad$$\quad$and for which there is evidence of a recent actual pattern of short-term profit-taking
IV $\quad$designated as such up on initial recognition
A) I, II and III
B) I, III and IV
C) I, II and IV
D) II, III and IV

Question

A financial liability classified as fair value through profit and loss must be:
I $\quad$a derivative (except for a derivative that is a financial guarantee contract or a 
$\quad$$\quad$hedging instrument)
II $\quad$acquired principally for the purpose of selling it in the near term
III$\quad$ part of a portfolio of identified financial instruments that are managed together 
$\quad$$\quad$and for which there is evidence of a recent actual pattern of short-term profit-taking
IV $\quad$designated as such up on initial recognition
A) I, II and III
B) I, III and IV
C) I, II and IV
D) II, III and IV

Quizplus · Accepted Answer

A financial liability classified as fair value through profit and loss can be a derivative, part of a portfolio managed for short-term profit-taking, or designated as such upon initial recognition.

A Financial Liability Classified as Fair Value Through Profit and Loss