CFA Practice Question

CFA Practice Question

All of the following must be disclosed regarding financial instruments with off-balance-sheet risk of accounting loss except the
A. instrument's nature and terms, including credit risk, market risk, cash requirements, face or contract amount, and related accounting policies.
B. accounting loss incurred if any party to the instrument failed completely to perform, and the collateral proved to be of no value.
C. amount by which earnings per share would change if the accounting loss were to occur.
Explanation: All of the items listed are required disclosure for financial instruments except for the impact on earnings per share.

User Contributed Comments 2

User Comment
bkballa what do they mean by off balance sheet risk of accounting loss?
chandsingh i think they are referring to contingent liabilities eg guarantor arrangements, some hedging instruments etc
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