ANSWER ONLY

Question 6

Under IFRS, the presumption is that equity investments are

Group of answer choices

held for trading- YES; held to profit from price changes- NO

held for trading- NO; held to profit from price changes- NO

held for trading- YES; held to profit from price changes- YES

held for trading- NO; held to profit from price changes- YES

Question 7

When a company has acquired a "passive interest" in another corporation, the acquiring company should account for the investment

Group of answer choices

by using the fair value method.

by using the equity method.

by using the effective interest method.

by consolidation.

Question 8

Under IFRS,

Group of answer choices

Dividends received in cash are always reported as income on the income statement

Realized gains and losses related to changes in the fair value of non-trading equity investments are reported as a part of other comprehensive income and as a component of other accumulated comprehensive income

All of the answer choices are correct.

The accounting for non-trading equity investments deviates from the general provisions for equity investments

Question 9

Unrealized holding gains or losses on trading investments are reported in

Group of answer choices

accumulated other comprehensive income

other comprehensive income

net income

equity

Question 10

Which of the following isnotcorrect in regard to trading, equity investments?

Group of answer choices

They are held with the intention of selling them in a short period of time

Impairment is recognized if the fair value of the trading investment is less than the carrying amount.

Unrealized holding gains and losses are reported as part of net income.

All of these answer choices are correct.