Fair Value Option

Question 1

Fair Value Option may not be elected for the following?

Answer 1

Investment under consolidation
postretirement employee benefit obligations
most financial assets and liabilities under leases
demand deposit liabilities
financial instruments at least partly classified in equity

Question 2

Election of FVO is made ———- at election date

Answer 2

irrevocable

Question 3

Unrealized gains/losses on the remeasurement to fair value of liabilities are recognized where?

Answer 3

Statement of comprehensive income

Question 4

Total change in FV
-change attributable to instrument specific credit risk
is recognized directly on?

Answer 4

the income statement

Question 5

change attributable to instrument specific credit risk is recognized as?

Answer 5

an item of OCI