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:

Genuine Crisis

A critical situation that is authentic and poses significant risk or danger, requiring immediate attention and action.

Charismatic Leadership

A leadership style characterized by an individual's ability to inspire and motivate followers through their vision, communication skills, and personal charisma.

Precipitate A Crisis

To cause a sudden crisis or emergency situation through one's actions or decisions.

Follower Performance

Refers to the outcomes, behaviors, and contributions of individuals who are guided or directed by a leader within an organizational context.