Question

Under IFRS, non-strategic debt investments are initially recorded using: -Fair value through profit and loss method....

Under IFRS, non-strategic debt investments are initially recorded using:
-Fair value through profit and loss method.
-Amortized cost method.
-Consolidation method.
-Amortized cost method.
-Both C & D are correct.

Homework Answers

Answer #1

Non strategic investment is initially recorded using fair value through profit and loss method (FVTPL)

Initial purchase is recorded as purchase cost but excludes transaction costs; transaction costs are expensed.

Any investment income or loss arising from the fair value test is recorded on the income statement.

The carrying value is adjusted to fair value on the balance sheet.

Under IFRS, non-strategic debt investments are initially recorded using Fair value through profit and loss method.

Answer is a. Fair value through profit and loss method.

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