For financial reporting purposes, financial assets can be put into one of seven categories: subsidiaries, joint ventures, associates, at fair value through profit or loss, at fair value through OCI, amortized cost, and joint operations. For each of the following items, identify the possible categories into which it can be placed. More than one category is possible for an item.
$\begin{array}{|l|l|}
\hline & \text { Financial asset categories } \
\hline \text { Colder Company buys 500 common shares of a } & \
\text { publicly traded company that has 200 million shares } & \
\text { outstanding. } & \
\hline \text { Bountiful gifts buys 1,000 preferred shares in another} & \
\hline\text {company. The shares do not have voting rights. } &\
\hline\text {Fast cars buys 800,000 common shares in Super }&\
\hline\text {Autos. There are 4,000,000 shares outstanding.}&\
\hline
\end{array}$

Question

For financial reporting purposes, financial assets can be put into one of seven categories: subsidiaries, joint ventures, associates, at fair value through profit or loss, at fair value through OCI, amortized cost, and joint operations. For each of the following items, identify the possible categories into which it can be placed. More than one category is possible for an item.
 $\begin{array}{|l|l|} 
\hline & \text { Financial asset categories } \
\hline \text { Colder Company buys 500 common shares of a } & \
\text {  publicly traded company that has 200 million shares } & \
 \text {  outstanding. }  & \
\hline \text { Bountiful gifts buys 1,000 preferred shares in another} & \
\hline\text {company. The shares do not have voting rights. } &\
\hline\text {Fast cars buys 800,000 common shares in Super }&\
\hline\text {Autos. There are 4,000,000 shares outstanding.}&\
\hline 
\end{array}$

Quizplus · Accepted Answer

The Answer of For financial reporting purposes, financial assets can be put into one of seven categories: subsidiaries, joint ventures, associates, at fair value through profit or loss, at fair value through OCI, amortized cost, and joint operations. For each of the following items, identify the possible categories into which it can be placed. More than one category is possible for an item.
 $\begin{array}{|l|l|} 
\hline & \text { Financial asset categories } \
\hline \text { Colder Company buys 500 common shares of a } & \
\text {  publicly traded company that has 200 million shares } & \
 \text {  outstanding. }  & \
\hline \text { Bountiful gifts buys 1,000 preferred shares in another} & \
\hline\text {company. The shares do not have voting rights. } &\
\hline\text {Fast cars buys 800,000 common shares in Super }&\
\hline\text {Autos. There are 4,000,000 shares outstanding.}&\
\hline 
\end{array}$

For Financial Reporting Purposes, Financial Assets Can Be Put into One