In the current year, AcqCo Ltd., a private company reporting under ASPE, purchased 42% of the voting shares of Woodward Inc. The remaining 58% of the voting shares are held by the original founder and her immediate family. To date, the family has elected all of the board members, and AcqCo Ltd. has not been able to obtain a seat on the board of directors. AcqCo Ltd. does not have any intercompany transactions with Woodward Inc. nor is there any exchange of management or technology. How should AcqCo Ltd. classify its investment in Woodward Inc.?

Question 5 options:

SubsidiaryAssociatePassive investment with the option to classify as a fair value through other comprehensive income or fair value through profit and loss.Passive investment with the option to classify the investment as a fair value through profit and loss or as a cost investment