In preparing the consolidated financial statements of the group controlled by Portia Ltd for the year ended 30 June 20X6,a fair value gain on available-for-sale financial assets would appear:
A) in the consolidated statement of changes in equity.
B) on the consolidated balance sheet.
C) in the consolidated statement of comprehensive income.
D) only in the notes to the consolidated financial statements.

Question

Quizplus · Accepted Answer

Fair value gain on available-for-sale financial assets would be included in the consolidated statement of comprehensive income, which reports comprehensive income for the period including both profit or loss and other comprehensive income items such as fair value gains or losses on available-for-sale financial assets. The fair value gain would not appear on the balance sheet or statement of changes in equity, but it may be disclosed in the notes to the financial statements.

In Preparing the Consolidated Financial Statements of the Group Controlled