Which of the following statements is not true?
A)Under the fair value through other comprehensive income model gains and losses are critical to the evaluation of management.
B)Under the fair value through profit or loss model, both realized and unrealized gains and losses are reported in the income statement.
C)Under the amortized cost model, no unrealized gains or losses are reported.
D)Non-strategic investments are purchased to generate investment income.

Question

Quizplus · Accepted Answer

Under the fair value through other comprehensive income model, gains and losses are recognized in other comprehensive income rather than in the income statement, and may not be as critical to the evaluation of management as they would be under the fair value through profit or loss model where they are reported in the income statement.

Which of the Following Statements Is Not True