A Financial Liability Classified as Fair Value Through Profit or Loss

A financial liability classified as fair value through profit or loss must be:
I - A derivative (except for a derivative that is a financial guarantee contract or a hedging instrument) .
II - Acquired principally for the purpose of selling it in the near term.
III - Part of a portfolio of identified financial instruments that are managed together and for which there is evidence of a recent actual pattern of short-term profit-taking.
IV - Designated as such upon initial recognition.

A) I, II and III.
B) I, III and IV.
C) I, II and IV.
D) II, III and IV.

Correct Answer:

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