CERTYNEX IFRS ACADEMY

Vessolane bank measures a group of derivatives on the basis of a net position "to simplify valuation", although there is no documented management of the group on a net basis and management is not informed on that basis. What is the error?

It should measure the derivatives at cost rather than at fair value.

It should apply the exception only every other year.

It applies the exception without the conditions of documented net-basis management and reporting to management.

It should present the derivatives net in the statement of financial position, in order to align presentation with the measurement used.