An Entity Holding Both Financial Assets and Liabilities Is Allowed

Multiple Choice

An entity holding both financial assets and liabilities is allowed to offset and determine fair value on the net position as long as:
I they hold a net long position
II they hold a net short position
III they have a documented risk management strategy
IV the manage the group of net financial assets and liabilities on a net exposure basis
v.transactions are conducted in an orderly market

A) I and III
B) II and IV
C) III and IV
D) II and V