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Passive Investments Can Be Classified as Fair Value Through Profit

Question 9

Multiple Choice

Passive investments can be classified as fair value through profit or loss (FVTPL) or as fair value through other comprehensive income (FVTOCI) . Which of the following statements is true?


A) Under both FVTPL and FVTOCI, changes in the fair value of the investment are reported as other comprehensive income on the statement of comprehensive income.
B) Under both FVTPL and FVTOCI, changes in the fair value of the investment are reported under the net income section on the statement of comprehensive income.
C) Under both FVTPL and FVTOCI, dividends received from the investee are reported under the net income section on the statement of comprehensive income.
D) Under both FVTPL and FVTOCI, dividends received from the investee are reported as other comprehensive income on the statement of comprehensive income.

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