Rudd LtdHas a Passive Investment in Burke Ltd

question 41

Multiple Choice

Rudd Ltd.has a passive investment in Burke Ltd.Rudd has elected to treat Burke as a fair value through other comprehensive income (FVTOCI) investment under IFRS 9 Financial Instruments.Which of the following statements is true?

• A)Dividends from Burke are reported as other comprehensive income in Rudd's Statement of Comprehensive Income (SCI)
• B)Dividends from Burke are reported as a separate component of Rudd's shareholders' equity.
• C)Year to year changes in the fair value of the Investment in Burke are reported as net income in Rudd's SCI.
• D)Fair value accumulated gains and losses in the Investment in Burke should be reported as a separate component in Rudd's shareholders' equity.

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Definitions:

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