Which of the Following Statements Regarding Non-Strategic Investments in Equity

question 44

Multiple Choice

Which of the following statements regarding non-strategic investments in equity is FALSE?

• A)There are possible exceptions to FVTPL.
• B)At the day of acquisition when the investment in shares is originally recorded, the company has the option of making an "irrevocable election" where it decides that subsequent changes to fair value will be put in other comprehensive income rather than through income.
• C)The "irrevocable election" can be made for investments that are held for trading.
• D)Items that are originally placed in Other Comprehensive Income cannot be recycled through profit and loss.

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Definitions:

Barriers to Entry

Factors that prevent or hinder companies from entering into a specific market or industry.

Monopolist's Demand Curve

Represents the total market demand faced by a monopolist, indicating how price affects the quantity of output demanded.

Elastic

A term used in economics to describe a situation where the quantity demanded or supplied of a good or service significantly changes in response to a change in price.

Quantitative Difference

The measurable distinction between objects, characteristics, or entities based on numerical values.