Which of the Following Is Not True About Accounting for an Equity

question 105

Multiple Choice

Which of the following is not true about accounting for an equity investment under IFRS No. 9?

• A) The investor can elect to account for the investment as FVOCI.
• B) Unrealized holding gains and losses on the investment will be recognized in income unless the investor elects to account for the investment as FVOCI.
• C) If the investor elects to account for the investment as FVOCI, gains and losses will be recognized in net income when the investment is sold.
• D) Unrealized holding gains and losses are recognized in net income if the investor accounts for the investments as FVPL.

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Definitions:

Miscarriage of Justice

An error in the legal process that results in the conviction and punishment of a person who is innocent of the charges.

Appellate Court

A court that reviews decisions made by lower courts, determining if there were errors in the application of law that could affect the outcome of the case.

New Evidence

Information or data that was previously unknown or unavailable, coming to light and potentially impacting existing conclusions or decisions.

Jury

A group of citizens summoned and sworn to decide on facts in a legal case and render a verdict of guilty or not guilty.