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NEW QUESTION: 1
Assuming an available-for-sale financial asset that is not part of a hedge is remeasured to fair value at the balance sheet, the gain or loss not arising from foreign exchange transactions or impairment:
A. Must be recognized in profit or loss.
B. Must be recognized in profit or loss if the result is a loss and directly in equity if the result is a gain.
C. Must be recognized directly in equity.
D. May be recognized in profit or loss or directly in equity.
Answer: C
Explanation:
A gain or loss on an available-for-sale financial asset that is not part of a hedge is recognized directly in equity through the statement of changes in equity except for impairment losses and foreign exchange gains and losses. The accumulated remeasurement gain or loss is included in profit or loss when the asset is derecognized.

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