True or False: Credit risk disclosure is not required for debt securities that are only held indirectly.

Credit risk disclosure is necessary even for debt securities that are held indirectly. When an organization invests in such securities, it retains an exposure to the credit risk associated with those assets. This requirement aligns with the principles of transparency and accountability in financial reporting.

Investors need to understand the nature and level of credit risk that the organization is exposed to, regardless of the direct ownership of the securities. This not only assists in evaluating the financial health of the institution but also aids stakeholders in making informed decisions based on the risk profile presented in the financial statements. Therefore, the assertion that credit risk disclosure is not required for debt securities held indirectly is inaccurate, making the response that credit risk disclosure is indeed required the correct viewpoint.