Question 11

Under what circumstances can the profit on an equity instrument carried at fair value be recorded in other comprehensive income?

a.When the equity investment is available for sale

b.When the profit or loss is capable of recycling

c.When the equity investment is held for trading

d.When the equity investment is not held for trading

Question 12

Which one of the following alternatives is correct?

a.In principle, all income and expenses are included in the statement of profit or loss.

b.The statement of profit or loss is the only source of information about an entitys financial performance for the period.

c.Income and expenses included in other comprehensive income are always recycled into the statement of profit or loss at the end of the holding period of the related asset or liability.

d.All income and expenses included in profit or loss arise from ordinary activities of the entity

Question 13

Which one of the following measurement bases is not categorised as part of the current value measurement base in the Conceptual Framework?

a.Current cost

b.Transaction cost

c.Fair value

d.Value in use