Which of the Following Is a True Statement About the Accounting

question 254

Multiple Choice

Which of the following is a true statement about the accounting for investments held for trading under IFRS?

• A) The investment is initially recorded at fair value.
• B) Gains and losses are recorded in OCI when the market value is different from the purchase price.
• C) The accounting for trading investments is the same as the accounting for short-term investments in debt instruments purchased to earn interest.
• D) The investment is initially recorded at face value.

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Definitions:

Auditor

A professional individual or firm tasked with examining and verifying financial statements and records to ensure accuracy and compliance.

Limited Liability Partnership

A partnership in which some or all partners have limited liabilities, protecting them from the debts and liabilities of the partnership beyond their investment.

Professional Misconduct

Refers to inappropriate or unethical behavior by a professional in their occupation, often leading to disciplinary action.

Accountant

A professional who performs accounting functions such as audits or financial statement analysis.