After recording the initial purchase of non-strategic investments,an entity must continue to measure the investment at fair value; subsequent profits or losses arising are recognized in net income.

Question

Quizplus · Accepted Answer

According to accounting standards, non-strategic investments are required to be measured at fair value and any subsequent gains or losses on these investments are recognized in net income. Therefore, the statement is true.

After Recording the Initial Purchase of Non-Strategic Investments,an Entity Must