The way in which a company accounts for its investments is determined by the nature and purpose of the investment. For each of the following investment situations, indicate if the investment

(a)		would be considered a debt or equity investment,
(b)		is a strategic or non-strategic investment,
(c)		should be classified as a current or a non-current asset, and
(d)		should be reported at cost, amortized cost, fair value, or equity.

				(a)		(b)		(c)		(d)
1.		A public company reporting under IFRS purchases 25% of the common shares of one of its suppliers to ensure a reliable source of raw materials. The ownership percentage provides significant influence.		Debt InvestmentEquity Investment		Non-strategic InvestmentStrategic Investment		Current AssetNon-current Asset		CostFair ValueEquityAmortized Cost
2.		A private company reporting under ASPE purchases 25% of the common shares of one of its suppliers to ensure a reliable source of raw materials. They paid $2 above the market price. The ownership percentage does not provide significant influence but the common shares of the supplier are traded on the stock market.		Equity InvestmentDebt Investment		Non-strategic InvestmentStrategic Investment		Current AssetNon-current Asset		Fair ValueAmortized CostEquityCost
3.		A company reporting under IFRS purchased 10-year bonds to earn interest income.		Debt InvestmentEquity Investment		Non-strategic InvestmentStrategic Investment		Non-current AssetCurrent Asset		EquityFair ValueAmortized CostCost
4.		A public company reporting under IFRS purchased common shares from another company, with plans to sell them if the share price increases.		Debt InvestmentEquity Investment		Strategic InvestmentNon-strategic Investment		Current AssetNon-current Asset		CostAmortized CostEquityFair Value
5.		A private company reporting under ASPE purchased shares for trading.		Debt InvestmentEquity Investment		Strategic InvestmentNon-strategic Investment		Non-current AssetCurrent Asset		Amortized CostEquityCostFair Value
6.		A private company reporting under ASPE purchased government treasury bills.		Equity InvestmentDebt Investment		Non-strategic InvestmentStrategic Investment		Non-current AssetCurrent Asset		CostEquityAmortized CostFair Value
7.		A private company reporting under ASPE purchased 15% of the common shares of a company "to hold" for which there is no quoted market price.		Equity InvestmentDebt Investment		Non-strategic InvestmentStrategic Investment		Non-current AssetCurrent Asset		Amortized CostCostEquityFair Value