Passive Investments Can Be Classified as Fair Value Through Profit

question 21

Multiple Choice

Passive investments can be classified as fair value through profit or loss (FVTPL) or as fair value through other comprehensive income (FVTOCI) . Which of the following statements is true?

• A)Under both FVTPL and FVTOCI, changes in the fair value of the investment are reported as other comprehensive income on the statement of comprehensive income.
• B)Under both FVTPL and FVTOCI, changes in the fair value of the investment are reported under the net income section on the statement of comprehensive income.
• C)Under both FVTPL and FVTOCI, dividends received from the investee are reported under the net income section on the statement of comprehensive income.
• D)Under both FVTPL and FVTOCI, dividends received from the investee are reported as other comprehensive income on the statement of comprehensive income.

---

Definitions:

Alarm Reaction

The initial stage of the General Adaptation Syndrome, describing the body's immediate reaction upon facing a threatening situation or stressor.

Physiological Arousal

The body's response to stimuli, resulting in increased heart rate, blood pressure, and energy preparation, often associated with stress or excitement.

Violin Solo

A musical performance piece designated for a single violinist, often accompanied by a piano, chamber group, or orchestra.

Term Paper

An academic assignment requiring extensive research and writing on a specific topic, typically presented at the end or term or semester.