Answered: For investment in equity securities…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 5C: Available-for-Sale Securities The following are four unrelated situations involving investments in...

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For investment in equity securities carried as FVOCI under PFRS 9, the difference between the carrying value of the investment and its related cumulative unrealized gain or loss-OCI is *

A. its unrealized gain or loss reported as a component of OCI for the period

B. Its amortized cost

C. its initial cost

D. its unrealized gain or loss reported under profit or loss for the period

A gain or loss arising on the initial recognition of biological assets and from a change in the fair value less costs to sell of a biological asset shall be included in: *

A. Profit or loss for the period

B. Other comprehensive income

C. A separate revaluation reserve

D. Either in the profit or loss or the other comprehensive income for the period

The following items are generally classified as plant assets, except:

a. Improvements to leased facilities

b. Property held for future plant sites

c. Breeding animals

d. Property being used as a plant site

Under PFRS9, investment in equity securities not held for trading are classified as:

a. FVOCI, if the entity opted to carry as FVOCI, otherwise, carried as b. FVPL

c. FVOCI

d. Either FVPL or FVOCI, depending on the entity’s business model

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