The difference between the fair value and the ___________ value of the investment at the day of a second acquisition of the same shares, is a gain or loss through the profit and loss of the entity.

Question

Quizplus · Accepted Answer

The carrying value of an investment represents the amount at which it is recorded on the balance sheet of the entity. The fair value of the investment can increase or decrease based on market fluctuations. The difference between the fair value and carrying value at the time of a second acquisition represents a gain or loss that will be recognized through the profit and loss of the entity. Therefore, the correct option is B.

The Difference Between the Fair Value and the ___________ Value