Assets Tutorial 6-Week Beginning 7 Dec 2020 Question 1 Indicate if these statements are true or false. If false, explain how the statement should be corrected a) If the financial asset is held within the business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms give rise to cash flows on specified dates that are solely payment of principal and interest, the financial asset should be measured at "Fair value through Other Comprehensive Income" (FVOCI). b) Financial assets classified as "Fair Value Through Profit or Loss" (FVTPL) are initially recognised at fair value plus fees and commissions paid. c) If the contractual terms of the debt instrument give rise to payments that are related to volatility risk, the debt instrument would satisfy the contractual cash flows characteristics test. d) Changes in fair value are taken to profit and loss for amortised cost. e) The term "mark to market" refers to reflecting the fair value of the investment at balance sheet date