Which of the Following Items Is Not an Example of Items

question 46

Multiple Choice

Which of the following items is not an example of items reportable under other comprehensive income?

• A) changes in revaluation surplus
• B) actuarial gains and losses on defined contribution plans
• C) gains and losses arising from translating the financial statements of a foreign operation
• D) the effective portion of gains and losses on hedging instruments in a cash flow hedge

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Definitions:

Cost Method

An accounting methodology where investments are recorded at their original purchase cost without adjusting for market changes.

Business Combination

Occurs when one company acquires control over another, resulting in the merging of assets, liabilities, and operations into a single entity.

One-Line Consolidation

A method of including a subsidiary's information in a parent company's financial statements by a single line representing the investment's net value.

Consolidation

The process of combining the financial statements of a parent company with those of its subsidiaries to present the accounts as if the group of companies was a single entity.