Financial asset should be measured at amortized cost if the following criteria are met:

Select one:

a. The financial instrument is managed within a business model aimed to trade it and the cash flows of the instrument have characteristics similar to reimbursements of principal and interest payments

b. The financial instrument is managed within a business model aimed to collect the cash flows rather than to trade it and the cash flows of the instrument have characteristics similar to reimbursements of principal and interest payments

c. The financial instrument is managed within a business model aimed to collect the cash flows rather than to trade it and the cash flows of the instrument do not reflect only payments of principal and interest

Answer rating: 100% (QA)

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