Clausen Ltd. has a passive investment in Kaitlin Ltd. Clausen has elected to treat Kaitlin as a fair value through other comprehensive income (OCI) investment under IFRS 9 Financial Instruments. Which of the following statements is TRUE?
A) Dividends that are a return of capital from Kaitlin are reported as a separate component of Clausen's shareholders' equity.
B) Year to year changes in the fair value of the Investment in Kaitlin are reported as net income in Clausen's SCI.
C) Fair value accumulated gains and losses in the Investment in Kaitlin should be reported as a separate component in Clausen's shareholders' equity.
D) Dividends from Kaitlin are reported as other comprehensive income in Clausen's Statement of Comprehensive Income.
Correct Answer:
Verified
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