Which statement is not true for a partial derecognition-say 30%-of a financial liability?
A)Record derecognition of 30% of the book value of the financial liability.
B)Record derecognition and the acquisition of 70% as a new liability.
C)Record derecognition of 30% of the unamortized premium or discount.
D)Record the gain or loss on derecognition of 30% of the financial liability.

Question

Quizplus · Accepted Answer

Partial derecognition of a financial liability involves recording the portion that has been derecognized and the portion that remains as a new liability. Therefore, statement B is true and is the correct choice. Statements A, C, and D are all true for a partial derecognition.

Which Statement Is Not True for a Partial Derecognition-Say 30%-Of