Which statement is correct about an at fair value through OCI investment?
A)The investment is reported at historical cost.
B)Changes in fair value are recorded in OCI.
C)These investments are acquired exclusively for selling in the near term.
D)Changes in fair value are recorded in income.

Question

Quizplus · Accepted Answer

An investment at fair value through OCI is recorded at fair value on the balance sheet, and any changes in fair value are recorded in OCI (Other Comprehensive Income) in the equity section of the balance sheet. This type of investment is not acquired exclusively for selling in the near term, and therefore, option C is incorrect. Option A is incorrect because it is not reported at historical cost, rather it is reported at fair value. Option D is also incorrect because changes in fair value are recorded in OCI, not income.

Which Statement Is Correct About an at Fair Value Through