Quiz 12.112 – False Statements about Accounting for Equity Investments under IFRS No. 9
Intermediate Accounting
Spiceland, Nelson, and Thomas
10th Edition
What is a false statement regarding accounting for equity investment under IFRS No. 9?
What is a false statement regarding accounting for equity investment under IFRS No. 9?
What is a false statement regarding the “fair value through other comprehensive income” (FVOCI) approach for accounting for investments under IFRS No. 9?
Equity method is a form of partial consolidation.
What happens if the fair value of a held-to-maturity investment falls below its cost, and the company believes it may have to sell the investment before the fair value recovers?
What is the treatment for a held-to-maturity investment if its fair value decreases below the cost, but the company does not plan to sell the investment before its fair value recovers?
How is trading security accounted for under U.S. GAAP if its fair value declines due to a credit loss?
How should a company account for an available-for-sale investment that has declined in fair value below its cost and the company intend to sell it before its fair value recovers?
What happens if the fair value of an available-for-sale investment falls below its cost, but the company does not plan to sell the investment before the fair value recovers?
Cash dividends received under equity accounting reduce the investee’s net assets.
Which option is NOT considered a financial instrument from the following choices?