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If a Debt Instrument Is Viewed as Complex, Which of the Following

Question 130

Multiple Choice

If a debt instrument is viewed as complex, which of the following is most likely not true?


A) The debt is always classified as FV-NI.
B) The investor will recognize large unrealized losses in the period in which fair value of the debt changes.
C) The debt may be accounted for at FV-OCI, depending on the investor's business purpose for holding the debt.
D) The debt may be a derivative.

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