Which of the following statements is incorrect?
A) Trade debtors and trade creditors are treated as unconditional financial assets and financial liabilities.
B) Forward contracts covered by AASB 9 are recognised as financial assets or financial liabilities at the commitment date.
C) Option contracts covered by AASB 9 are recognised as financial assets or financial liabilities when the holder or writer becomes a party to the contract.
D) Planned future transactions are to be recognised as asset or liabilities at the date the plan is finalised.

Question

Quizplus · Accepted Answer

Planned future transactions are not recognized as assets or liabilities until they actually occur. They are only disclosed in the notes to the financial statements. Therefore, statement D is incorrect. Statements A, B, and C are correct.

Which of the Following Statements Is Incorrect