A financial asset meets the qualifications to be reported at amortized cost and not at fair value. Despite this, the financial asset could still be reported at fair value.

Question

Quizplus · Accepted Answer

Entities have the option to report certain financial assets at fair value even if they qualify for amortized cost reporting, as part of the fair value option provided under accounting standards such as IFRS 9 and ASC 320. This choice allows for more flexibility in financial reporting.

A Financial Asset Meets the Qualifications to Be Reported at Amortized