Which statement is incorrect regarding reclassification of financial assets? Group of answer choices None of these. Reclassifications are only permitted on the change of an entity's business model and are expected to occur only infrequently. An entity shall restate any previously recognized gains, losses (including impairment gains or losses) or interest. An entity shall account for transfers between categories prospectively, at the beginning of the period after the change in the business model.

Which statement is incorrect regarding reclassification of financial assets? Group of answer choices None of these. Reclassifications are only permitted on the change of an entity's business model and are expected to occur only infrequently. An entity shall restate any previously recognized gains, losses (including impairment gains or losses) or interest. An entity shall account for transfers between categories prospectively, at the beginning of the period after the change in the business model.

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

Which statement is incorrect regarding reclassification of financial assets?

Group of answer choices

None of these.

Reclassifications are only permitted on the change of an entity's business model and are expected to occur only infrequently.

An entity shall restate any previously recognized gains, losses (including impairment gains or losses) or interest.

An entity shall account for transfers between categories prospectively, at the beginning of the period after the change in the business model.

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