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11. The theoretical basis for requiring companies to use fair value accounting to account for investments in equity securities derives primarily from a qualitative characteristic

11. The theoretical basis for requiring companies to use fair value accounting to account for investments in equity securities derives primarily from a qualitative characteristic of reporting financial information from SFAC 8 (previously SFAC 2). The characteristic which best applies to this requirement is

A. faithful representation (reliability in SFAC 2)

B. timeliness

C. consistency

D. relevance

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