alleryStart learning →Which two tests decide how a financial asset is classified under IFRS 9?
ALiquidity test and gearing ratio test
BContractual cash flow test and business model test
CMateriality test and going concern test
DCost recovery test and revenue timing test
Answer & Solution
Correct answer: B. Contractual cash flow test and business model test
Classification turns on whether cash flows are solely principal and interest and on the entity's business model.
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