The ________ investment must be shown as a current asset, whereas the other investments could be current or non-current, depending on management's intention.

Question

Quizplus · Accepted Answer

According to IAS 1, investments which are held for trading purposes and are intended to be sold within 12 months must be classified as current assets and measured at fair value through profit or loss (FVTPL). The other investment methods (cost method, equity method, and FVTOCI) do not have this requirement and can be classified as either current or non-current based on management's intentions.

The ________ Investment Must Be Shown as a Current Asset