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.

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Definitions:

Motor Skills

Abilities required to perform movements and tasks, ranging from simple to complex, involving the coordination of muscles and limbs.

Adaptive Behavior

The collection of conceptual, social, and practical skills that people learn and use in their daily lives to function effectively and meet societal standards.

Language Use

The manner in which words and phrases are utilized in communication, varying by context, cultural norms, and individual differences.

Personal-social Behavior

relates to the way an individual interacts with others in social contexts, reflecting aspects of their personality and social skills.