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Which of the Following Statements Regarding Non-Strategic Investments in Equity

Question 56

Multiple Choice

Which of the following statements regarding non-strategic investments in equity is FALSE?


A) There are possible exceptions to FVTPL.
B) At the day of acquisition when the investment in shares is originally recorded, the company has the option of making an "irrevocable election" where it decides that subsequent changes to fair value will be put in other comprehensive income rather than through income.
C) The "irrevocable election" can be made for investments that are held for trading.
D) Items that are originally placed in Other Comprehensive Income cannot be recycled through profit and loss.

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