Question: 18. When a company adopts the fair value option for a company bond debt payable, a decrease in market value over one year in particular:
18. When a company adopts the fair value option for a company
bond debt payable, a decrease in market value over one year in
particular:
to. It is recognized as unrealized gain in Other comprehensive income.
b. It is not recognized, because it is an unrealized gain.
c. It is recognized in the statement of income and expenses, even if it is the result of changes in the
credit risk of the debtor
d. The portion attributed to general risk is recognized in the statement of income and expenses and
the portion attributed to credit risk is recognized as Other comprehensive
income.
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