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:
A. Industry practice.
B. Its own documented investment strategy.
C. ASIC's requirements.
D. The law.
E. The accounting standard, AASB 1055 Financial Instruments Disclosure.

Question

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In disclosing information about the classification of a financial asset or liability as "at fair value through profit and loss", an entity must have a narrative description of how this designation is consistent with its own documented investment strategy. There is no requirement for consistency with industry practice, ASIC's requirements, or the law, although compliance with accounting standard AASB 1055 Financial Instruments Disclosure is necessary.

In Disclosing Information About How a Financial Asset or Financial