If an Investor Is Reporting in Compliance with the International

question 5

Multiple Choice

If an investor is reporting in compliance with the International Financial Reporting Standards and has an investment with significant influence over the investee, what are the reporting requirements for the investor if the investment is in shares which are actively traded on an exchange?

• A) The investment must be reported at fair value through profit and loss.
• B) The investment must be reported at fair value through other comprehensive income.
• C) The investment must be reported using the equity method with the fair value disclosed in the notes to the financial statements.
• D)The investment must be reported using the equity method; disclosure of the fair value of the investment is at the discretion of the investor.

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Definitions:

Postoperative Pain

Pain experienced by patients after undergoing surgical procedures.

Recognize

To identify someone or something seen, known, or experienced before.

Top-down Processing

A cognitive process that starts with the brain applying what it knows to interpret sensory information, rather than starting with the sensory input itself.

Sensory Input

The information received by sensory receptors about the internal and external environment.