Under IFRS, a company may select the fair value option or amortized cost for valuing a group of receivables at each statement of financial position date.

Question

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Under IFRS, a company must classify financial assets, including receivables, based on their business model and cash flow characteristics, which determines whether they are measured at amortized cost, fair value through other comprehensive income, or fair value through profit or loss. The fair value option is not available for receivables unless specific conditions are met.

Under IFRS, a Company May Select the Fair Value Option