The primary difference in accounting for non-strategic investments in shares and bonds is that International Financial Reporting Standards (IFRS_require that most investments be reported at fair value.If fair value is not easily ascertained,Accounting Standards for Private Enterprises (ASPE_allow the use of cost as the valuation basis.

Question

Quizplus · Accepted Answer

This statement is true. IFRS requires most investments to be reported at fair value, while ASPE allows the use of cost as the valuation basis if fair value is not easily ascertained.

The Primary Difference in Accounting for Non-Strategic Investments in Shares