Firms may choose the fair value option for either a single financial instrument or a group of financial instruments.

Question

Quizplus · Accepted Answer

This statement is correct. Firms may choose to measure either a single financial instrument or a group of financial instruments at fair value. This option is available for certain financial instruments such as investments in equity securities, financial assets and liabilities, and certain derivative financial instruments.

Firms May Choose the Fair Value Option for Either a Single