Investments in equity instruments are financial assets because they are

a. Contractual rights to receive cash or another financial asset from another entity.

b. Equity instruments of another entity.

c. Contractual rights to exchange financial assets or financial liabilities with another entity under conditions that are potentially favorable to the entity.

d. Cash equivalents.

All investments in equity instruments and contracts on those instruments must be measured at fair value. Cost may be an appropriate estimate of fair

value in which of the following?

1. Insufficient more recent information is available to measure fair value.

2. There is a wide range of possible fair value measurements and cost

represents the best estimate of fair value within that range.

3. Investments in quoted equity instruments.

None of these