Equity investments: Nova have a portfolio of equity investments which it uses for the short-term investment of surplus cash. When it needs cash for business purposes it will sell some investments from this portfolio. The portfolio is measured at its fair value each financial year end. Any surpluses or deficits on re-measurement to fair value are recognized in investment income as part of the profit or loss for the period. Nova also has two long-term equity investments in key suppliers which it has held for some time and has no intention of selling. These investments are also measured at fair value but changes in fair value are recognized as other comprehensive income. By acquiring those equity investments, Nova has no intention to control or have significant influence over the investee.

what difference does it make to Nova whether gains or losses are reported in other comprehensive income rather than as part of the profit or loss for the period? Discuss the relevant models for accounting of equity investments.