Question
Which of the following statements does not reflect the provisions of ASU 2016-01 related to fair value measurement? Multiple Choice It requires minority-passive equity investments
Which of the following statements does not reflect the provisions of ASU 2016-01 related to fair value measurement?
Multiple Choice
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It requires minority-passive equity investments (generally less than 20% ownership) to be measured at fair value with changes in fair value recognized in net income, unless there is no readily determinable fair value.
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It requires an entity applying the fair value option to its own liabilities to recognize in other comprehensive income (not net income) the change in fair value attributable to the entitys creditworthiness.
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It simplifies the impairment assessment of equity investments that do not have readily determinable fair values.
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It requires an entity applying the fair value option to its own liabilities to recognize in net income the change in fair value attributable to the entitys creditworthiness.
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