IFRS No9 Is a Standard That Indicates Accounting for Investments When

question 60

Essay

IFRS No.9 is a standard that indicates accounting for investments when the investor does not have significant influence under the investee.
Required:
Explain how debt investments are accounted for under IFRS No.9.What alternative accounting approaches are available,what determines whether an investment qualifies for each approach,and what are the key features of each approach with respect to accounting for unrealized gains and losses?

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Definitions:

Mutualism

A symbiotic relationship between two species in which both species benefit from the interaction.

Mycorrhizae

Symbiotic associations between fungi and the roots of plants, improving nutrient and water uptake.

Epiphytes

Plants that grow on other plants for physical support but do not extract nutrients from their hosts, thus not parasitic.

Species Richness

A measure of the number of different species represented in an ecological community, landscape or region.