S1 Bond investments classified and accounted for as financial asset at amortized cost are recognized initially at fair value plus transaction costs that are directly attributable to the acquisition. S2: Transaction costs attributable to the acquisition of bond investments held for trading or at "air value through profit or loss are expensed immediately.

S1 Bond investments classified and accounted for as financial asset at amortized cost are recognized initially at fair value plus transaction costs that are directly attributable to the acquisition. S2: Transaction costs attributable to the acquisition of bond investments held for trading or at "air value through profit or loss are expensed immediately.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

S1: Bond investments classified and accounted for as financial asset at
amortized cost are recognized initially at fair value plus transaction costs
that are directly attributable to the acquisition. S2: Transaction costs
attributable to the acquisition of bond investments held for trading or at
fair value through profit or loss are expensed immediately.
O Only S1 is TRUE
O Only S2 is TRUE
Both statements are TRUE
O Both statements are FALSE

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