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IFRS requires that financial liabilities other than those held for trading must be measured at amortized...

IFRS requires that financial liabilities other than those held for trading must be measured at amortized cost.

a.True

b.False

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Answer #1

All financial liabilities are measured at amortised cost except for financial liabilities at fair value through profit or loss. Such liabilities include derivatives, those held for trading and liabilities that are decided to be measured at fair value through profit and loss.  

The statement 'IFRS requires that financial liabilities other than those held for trading must be measured at amortized cost' is partially true because derivatives and liabilities that are to be measured at fair value through profit and loss are also measured at fair value apart from those held for trading.

Hence, the statement is overall false.

Answer is b. False

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