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Rudd LtdHas a Passive Investment in Burke Ltd

Question 15

Multiple Choice

Rudd Ltd.has a passive investment in Burke Ltd.Rudd has elected to treat Burke as a fair value through other comprehensive income (FVTOCI) investment under IFRS 9 Financial Instruments.Which of the following statements is true?


A) Dividends from Burke are reported as other comprehensive income in Rudd's Statement of Comprehensive Income (SCI)
B) Dividends from Burke are reported as a separate component of Rudd's shareholders' equity.
C) Year to year changes in the fair value of the Investment in Burke are reported as net income in Rudd's SCI.
D) Fair value accumulated gains and losses in the Investment in Burke should be reported as a separate component in Rudd's shareholders' equity.

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