Question 2 Note (v) F7 Dec 2011 Paper

Hello Mike,

Can you please explain note (v) of Q2 of the Dec 2011 F7 (INT) paper

I understand that the movement on the equity instrutment is taken to profit or loss but what i dont understand is the followoing sentence ” Keystone has not made the election in accordance with IFRS 9 Financial Instrutments. What election and for what?

Look forward to your reply

Thanks

Liam