On 1 Jan 20X9, a company invests 1,000,000 in the equity shares of another business. Direct costs relating to the acquisition total 10,000. At the company's financial year end on 31 Dec 20X9, the equity shares are valued at 950,000. The investment is classified as fair value through profit or loss. In relation to this investment and its impact on the financial statements at 31 Dec X9, which one of the following is correct?

a) Recognise investment of 950,000 in statement of financial position. Recognise a loss of 40,000 in statement of profit or loss.

b) Recognise investment of 950,000 in statement of financial position. Recognise a loss of 50,000 and expenses of 10,000 in statement of profit or loss.

c) Recognise investment of 1,010,000 in statement of financial position. No impact on statement of profit or loss.

d) Recognise investment of 1,000,000 in statement of financial position. Recognise an expense of 10,000 in statement of profit or loss.