Under IAS 39,Financial Instruments: Recognition and Measurement,which of the following terms describes the removal of a financial asset or liability from the balance sheet when certain appropriate criteria have been met?

Question

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Derecognition refers to the removal of a financial asset or liability from the balance sheet when certain appropriate criteria have been met, such as when the asset is sold or the liability is fully paid off. Decoupling, extinguishment, and reversal are not terms used in IAS 39 to describe this process.

Under IAS 39,Financial Instruments: Recognition and Measurement,which of the Following