In substance,investments in equity securities may be classified as:
A) trading investments at fair value, where increments and decrements in the fair value of the investments are recognised in the income statement.
B) available-for-sale investments.
C) equity investments in subsidiaries, associates and joint venture entities.
D) all of the above.

Question

Quizplus · Accepted Answer

All of the above options are correct classifications of investments in equity securities. Trading investments are those bought and held with the intention of selling in the near term, available-for-sale investments are those held for an undefined period and may be sold when deemed necessary, and equity investments in subsidiaries, associates, and joint venture entities refer to ownership in other companies.

In Substance,investments in Equity Securities May Be Classified As