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 statement of income.
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 not critical to the evaluation of management. This model primarily affects how investments are reported in financial statements, with gains and losses recognized in other comprehensive income rather than affecting net income directly.

Which of the Following Statements Is Not True