COX Limited is a multinational telecommunications company owned by a Canadian businesswoman. It has numerous long-term investments in a wide variety of equity instruments.

Some investments have to be measured at fair value at each reporting date. In turn, the unrealized gains will be reported in either net income or other comprehensive income. Since COX has considerable external financing through a number of Canadian banks, it applies IFRS for public companies in its general-purpose financial statements.

The CFO of COX has heard about the new reporting standards for equity investments under IFRS 9 but has had limited time to study them in detail. He would like you to prepare a presentation on the reporting requirements. He wants to understand how equity investments should be reported. More specifically, he wants to know

• which investments must be measured at fair value and what the main rationale for this method of reporting is;
• how to determine whether the unrealized gains are to be reported in net income or other comprehensive income and what the main rationale for the difference in reporting is; and
• which investments, if any, will still be reported using the cost method, using the equity method, or on a consolidated basis.

Required:

Present the report of (1) FVTPL, (2) FVTOCI, (3) cost method, (4) investments in associates and (5) investment in subsidiaries.