In disclosing information about how a financial asset or financial liability meets the conditions to be classified as 'at fair value through profit and loss',an entity must have a narrative description of how this designation is consistent with:

Question

Quizplus · Accepted Answer

The fair value designation should be consistent with the entity's own documented investment strategy, as this indicates a deliberate decision based on the entity's own goals and objectives.

Answer: D
 The fair value designation should be consistent with the law, as entities must comply with legal requirements and regulations surrounding financial reporting.

Option A is incorrect because industry practice alone should not determine an entity's financial reporting decisions. Option C is incorrect because CISI requirements may not be relevant or applicable to all entities.

In Disclosing Information About How a Financial Asset or Financial