Plant & Company plans to convert to IFRSs with a date of transition to IFRSs of 1 January 2X22. Under previous GAAP certain non-derivative financial assets have been derecognized from the statement of financial position in 2x20. Such financial assets would not have been derecognized if IFRSs had been applied at the time that they were derecognized. Select the best response. O Plant & Company must recognize non-derivative financial assets that have been derecognized in accordance with previous GAAP in the opening IFRS statement of financial position if they did not qualify for derecognition under IFRSs. Plant & Company must never recognize non-derivative financial assets that have been derecognized in accordance with previous GAAP. O Plant & Company must not recognize non-derivative financial assets that have been derecognized in accordance with previous GAAP unless they qualify for recognition as a result of a later transaction or event. Plant & Company must determine if the non-derivative financial assets derecognized in accordance with previous GAAP qualify for derecognition at the date of transition to IFRSs, if they do not qualify for IFRSs derecognition at that date they must be recognized in the opening IFRS statement of financial position.
Plant & Company plans to convert to IFRSs with a date of transition to IFRSs of 1 January 2X22. Under previous GAAP certain non-derivative financial assets have been derecognized from the statement of financial position in 2x20. Such financial assets would not have been derecognized if IFRSs had been applied at the time that they were derecognized. Select the best response. O Plant & Company must recognize non-derivative financial assets that have been derecognized in accordance with previous GAAP in the opening IFRS statement of financial position if they did not qualify for derecognition under IFRSs. Plant & Company must never recognize non-derivative financial assets that have been derecognized in accordance with previous GAAP. O Plant & Company must not recognize non-derivative financial assets that have been derecognized in accordance with previous GAAP unless they qualify for recognition as a result of a later transaction or event. Plant & Company must determine if the non-derivative financial assets derecognized in accordance with previous GAAP qualify for derecognition at the date of transition to IFRSs, if they do not qualify for IFRSs derecognition at that date they must be recognized in the opening IFRS statement of financial position.
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter4: Gross Income
Section: Chapter Questions
Problem 4BD
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Transcribed Image Text:Plant & Company plans to convert to IFRSs with a date of transition to IFRSs of 1
January 2X22. Under previous GAAP certain non-derivative financial assets have
been derecognized from the statement of financial position in 2x20. Such
financial assets would not have been derecognized if IFRSs had been applied at
the time that they were derecognized. Select the best response.
Plant & Company must recognize non-derivative financial assets that have
been derecognized in accordance with previous GAAP in the opening IFRS
statement of financial position if they did not qualify for derecognition under
IFRSs.
Plant & Company must never recognize non-derivative financial assets that
have been derecognized in accordance with previous GAAP.
Plant & Company must not recognize non-derivative financial assets that
have been derecognized in accordance with previous GAAP unless they
qualify for recognition as a result of a later transaction or event.
Plant & Company must determine if the non-derivative financial assets
derecognized in accordance with previous GAAP qualify for derecognition
at the date of transition to IFRSs, if they do not qualify for IFRSs
derecognition at that date they must be recognized in the opening IFRS
statement of financial position.
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