Question
1) Which of the following statement(s) is/are correct regarding investments in equity? Select one: a. A strategic investment means an investment of 20% or more
1) Which of the following statement(s) is/are correct regarding investments in equity?
Select one:
a. A strategic investment means an investment of 20% or more of the common shares issued by an investee.
b. Non-strategic equity investments are typically investments in shares where less than 20% of the common shares are owned by the investor.
c. All of the available choices.
d. Strategic investments are further classified into investments with significant influence and investments with controlling influence.
2) Accounting for equity with insignicant inuence (less than 20% ownership) under IFRS requires that:
Select one:
a. Gains and losses are reported in either net income or other comprehensive income (OCI).
b. None of the available choices
c. Gains and losses are reported in other comprehensive income only.
d. Gains and losses are reported in net income only.
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