Equity accounting for intercorporate investment relies on book value. But if the ownership is an investment, how does fair value accounting enter in? Should it be considered at all?

Under fair-value accounting for an equity investment, which of the following affects the income the investor recognizes from its ownership of the investee? The investee’s reported income adjusted for excess cost over book value amortizations. Changes in the fair value of the investor’s ownership shares of the investee. Intra-entity profits from upstream sales. Other comprehensive income reported by the investee.

In relation to investments and fair value, what are the two categories of investments that companies would normally report?

What is the default classification for an equity investment? A  Fair value through profit or loss B  Fair value through other comprehensive income C  Amortised cost D  Net proceeds

Which of the following statements is correct? a. IFRS permits the fair value option for the equity method of accounting. b. GAAP permits recovery of impairment losses. c. Under IFRS, non-trading equity investments are accounted for at amortized cost. d. IFRS and GAAP both have a trading investment classification.

an investment in equity instrument may not be classified as a financial asset subsequently measured at   a) Fair value through profit or loss b) Amortized cost c) Fair value through other comprehensive income d) none of these

What is a STO Group of answer choices   A security token represents an investment contract into an underlying investment asset such as equity shares, debt (ie bonds), funds and real estate investment trusts (REIT) A share token that represents shares in the product sold A share of a stock traded opinion A sale of a soft token opinion

What is the primary objective of the fair value method of accounting for an investment?

what is the difference between marketable equity securities held as financial asset at fair value through other comprehensive income AND nontrading equity securities held at fair value through other comprehensive income?

All of the following are key similarities between GAAP and IFRS with respect to accounting for investments except:(a) IFRS and GAAP require the same accounting for equity securities.(b) IFRS and GAAP apply the equity method to significant influence equity investments.(c) IFRS and GAAP have a fair value option for financial instruments.(d) the accounting for impairment of investments is similar, although IFRS allows recovery of impairment losses.