An example of the derecognition of a financial asset is:
A) the entity no longer has control of the asset.
B) the expiration of the contractual rights to cash flows.
C) the asset no longer qualifies for recognition in the statement of financial position.
D) All of the above.

Question

Quizplus · Accepted Answer

All of the above are examples of derecognition of a financial asset. Derecognition occurs when an asset no longer meets the recognition criteria or when the entity no longer has control of the asset. Additionally, the contractual rights to cash flows may expire, making the asset ineligible for recognition in the statement of financial position.

An Example of the Derecognition of a Financial Asset Is