Which of the Following Is Not Included in the Definition

question 32

Multiple Choice

Which of the following is not included in the definition of an investment entity as per IFRS 10 Consolidated Financial Statements?

• A) Measures and evaluates the performance of substantially all of its investments on a cost basis.
• B) Measures and evaluates the performance of substantially all of its investments on a fair value basis.
• C) Commits to its investors that its business purpose is to invest funds solely for returns from capital appreciation or investment income.
• D) Obtains funds from one or more investors for the purpose of providing those investors with investment management services.

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Definitions:

Net Realizable Value

The estimated selling price of goods, minus the costs of their completion and disposal.

Present Value

The present value of a future amount of money or series of cash flows, assuming a certain return rate.