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“it is possible to measure a liability at FV when it would normally be measured at amortised cots if it would eliminate or reduce an accounting mismatch.”
sir this statement is mentioned in my kaplan study text and i don’t understand what they are trying to mean by this. Can you specifically elaborate on accounting mismatch. there is only one finical instrument, how can there be a mismatch.
Borrow money = financial liability (FL)
In order to:
Buy investment property (IP)
As you know IP are FVPL so you can make the FL FVPL ‘to avoid accounting mismatch’