Which of the following shall be taken to profit or loss for investments measuredat fair value through other comprehensive income?change in fair value during the reporting periodgain or loss on disposal of the securitiesdividends received declared from current year's earnings of the investeeimpairment in the value of the securities

Other Comprehensive Income - This statement includes all the income which is not earned yet by the…

Which of the following shall be taken to profit or loss for investments measured at fair value through other comprehensive income? change in fair value during the reporting period O gain or loss on disposal of the securities O dividends received declared from current year's earnings of the investee O impairment in the value of the securities

Which of the following shall be taken to profit or loss for investments measured at fair value through other comprehensive income? change in fair value during the reporting period O gain or loss on disposal of the securities O dividends received declared from current year's earnings of the investee O impairment in the value of the securities

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter10: Auditing Cash, Marketable Securities, And Complex Financial Instruments

Section: Chapter Questions

Problem 28RQSC

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Similar questions

When the market value of a companys available-for-sale securities is lower than its cost, the difference should be: a. shown as a liability. b. shown as a valuation allowance added to the historical cost of the investments. c. shown as a valuation allowance subtracted from the historical cost of the investments. d. No entry is made, the securities are shown at historical cost.
Where are changes in fair value for available for sale securities reported? Group of answer choices as a prior period adjustment to retained earnings on the balance sheet as a component of accumulated other comprehensive income on the balance sheet as operating income or loss on the income statement as income or loss from peripheral activities on the income statement
Accumulated Other Comprehensive Income in the shareholders' equity section of the balance sheet reflects changes in the fair value of securities for which type of securities?
Which of the following is measured at fair value with fair value changes recognized in profit or loss? a. held to maturity investments b. financial assets designated at FVPL c. FVOCI d. all of these
When an investment is acquired to be held for an unspecified period of time as opposed to being held to maturity, it is reported at the fair value of the investment securities on the reporting date. Why?
All of the following are true of the effect of fair value accounting on the financial statements except: a. any difference between the original cost or the prior period’s fair value must be recorded b. changes in the fair value of trading securities are recognized on the income statement c. valuation allowance accounts are reported on the balance sheet d. changes in the fair value of available-for-sale securities are recognized on the income statement
Unrealized holding gains and losses are included in net income for securities that are classified as available for sale and recorded in the balance sheet by its fair value. True or False
Impairments of debt investments at amortized cost are recognized as component of Other Comprehensive Income. based on fair value for non-trading investments. based on discounted contractual cash flows. Evaluated at each reporting date.
Which of the following reclassifications of financial assets is permitted under PFRS 9? a. reclassification out of designated at FVPL to amortized costb. reclassification out of the FVOCI (election) measurement category to financial assetsmeasured at FVPLc. reclassification out of held for trading equity securities to amortized costd. reclassification from amortized cost and to FVPL
In subsequent periods after purchase, investments in available-for-sale securities will be reported at fair value. cost. face value. par value. 2. For investments in available-for-sale securities, a debit balance in the Unrealized Holding Gain/Loss account reflects a cumulative unrealized gain. is reported as a negative element in the accumulated other comprehensive income section of shareholders' equity. is reported as a positive element in the accumulated other comprehensive income section of shareholders' equity. is reported as a positive element in the assets section of the balance sheet.
Why are unrealized gains and losses on available-for-sale securities not reported in theincome statement, but instead are reported in other comprehensive income, and thenshown in accumulated other comprehensive income (AOCI) in the balance sheet?
For investments in available-for-sale securities, a debit balance in the Unrealized Holding Gain/Loss account reflects a cumulative unrealized gain. is reported as a negative element in the accumulated other comprehensive income section of shareholders' equity. is reported as a positive element in the accumulated other comprehensive income section of shareholders' equity. is reported as a positive element in the assets section of the balance sheet.