Rudd Ltd Has a Passive Investment in Burke Ltd

question 28

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 line item on Rudd's statement of financial position.
• C)Year-to-year changes in the fair value of the investment in Burke are reported as net income in Rudd's SCI.
• D)Accumulated gains and losses in the fair value of investment in Burke should be reported as a separate component in Rudd's shareholders' equity on the statement of financial position.

---

Definitions:

Dark Web

Part of the internet that is intentionally hidden from standard search engines and browsers, often associated with illegal activities.

Anonymously Hosted

Refers to websites or services hosted without revealing the identity of the owners or administrators.

Illegal Activities

Actions that violate laws set by governments, including crimes ranging from fraud to trafficking.

Fake News

Stories that are invented rather than being factual and that are intended to spread misinformation.