Gains and Losses on Available-For-Sale Financial Assets Are Recognised Directly

Multiple Choice

Gains and losses on available-for-sale financial assets are recognised directly in equity until the financial asset is derecognised. Upon derecognition, the cumulative gain or loss previously recognised is:

A) set-off against the relevant financial asset.
B) recognised in profit or loss.
C) transferred to a revaluation reserve account in equity.
D) charged against a provision for gains and losses account.