1. Which statement is correct?

a) Subsequent measurement for investments is always historical cost

b) All investments are initially measured at fair value

c) Neither statement is correct

d) Both statements are correct

2. Which statement is correct about the treatment of transaction costs?

a) Transaction costs are always included in the investment cost

b) Transaction costs for a subsidiary are capitalized into the purchase price.

c) Transaction costs for investment classified as a fair-value-through-profit-and-loss investment are expensed.

3. What is the accounting for FVTPL investments?

a) Held at historical cost.

b) Revalued to fair value each reporting date, with the change in fair value included in earnings.

c) Amortized using the effective rate method.

4. Which statement about FVTOCI is correct?

a) The FVTOCI election is revocable.

b) The investment can be acquired primarily for resale.

c) Investments in this category are revalued to fair value each reporting date, with the change in fair value included in other comprehensive income.

d) The election to classify an investment as FVTOCI must be made when the investment is sold.