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11 June, 16:45

Election of the fair value option (FVO) for financial assets Permits only for-profit entities to measure eligible items at fair value. Requires deferral of related upfront costs. Results in recognition of unrealized gains and losses in other comprehensive income of a business entity. Results in recognition of unrealized gains and losses in earnings of a business entity.

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  1. 11 June, 17:28
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    Answer: Results in recognition of unrealized gains and losses in earnings of a business entity

    Explanation:

    The election of the fair value option (FVO) for financial assets results in recognition of unrealized gains and losses in earnings of a business entity. The fair value option puts into consideration the unrealized gains and losses in earning of a business for financial assets.

    For example, an election date occurs when an entity recognizes an investment in equity securities with readily determinable fair values issued by another entity.
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