Which of the following is not true about the "fair value through profit and loss" approach for accounting for investments under IFRS?
A) Allowed under both IAS No. 39 and IFRS No. 9.
B) Includes unrealized holding gains in earnings.
C) Requires reclassification of realized gains from other comprehensive income.
D) Not vulnerable to other-than-temporary impairments.

Question

Quizplus · Accepted Answer

The "fair value through profit and loss" approach under IFRS records unrealized and realized gains or losses directly in the income statement, not requiring reclassification from other comprehensive income. Other comprehensive income is used for investments classified under other categories, such as "available-for-sale" under IAS 39, not for those measured at fair value through profit and loss.

Which of the Following Is Not True About the "Fair