Each of the following investments is independent of the others.
1. A bond that will mature in four years was bought one month ago when the price dropped. As soon as the value increases, which is expected next month, it will be sold.
2. Ten percent of the outstanding shares of Farm Corp. were purchased. The company is planning on eventually getting a total of 30% of the outstanding shares.
3. Ten-year bonds were purchased this year. The bonds mature on January 1 of next year.
4. Bonds that will mature in five years are purchased. The company would like to hold them until they mature, but money has been tight recently and the bonds may need to be sold.
5. A bond that matures in 10 years was purchased with money that the company has set aside for an expansion project that is planned for 10 years from now.
6. Preferred shares were purchased for their consistent dividend. The company is planning to hold the preferred shares for a long time.
7. Common shares of a distributor are purchased to meet a regulatory requirement for doing business in the distributor's region. The investment is expected to be held indefinitely.
Instructions
Identify the best accounting model classification(s) for each of the investments described above under
(a) ASPE
(b) IAS 39
(c) IFRS 9.