A company has previously recorded in income an impairment loss on debt securities classified as AFS. What can we conclude from this information?
A) The loss is attributed to an increase in market rates of interest.
B) The loss is attributed to a decline in the ability of the investee to meet required principal and interest payments.
C) The amount of the impairment loss directly reduced the investment account.
D) The loss was originally recorded in OCI.
Correct Answer:
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