The fair value through net income model requires that
A) investments are measured at fair value.
B) transaction costs are expensed.
C) investments are measured at fair value and transaction costs are capitalized.
D) investments are measured at fair value and transaction costs are expensed.

Question

Quizplus · Accepted Answer

The fair value through net income model requires that investments are measured at fair value, but transaction costs are expensed. This is different from the fair value through other comprehensive income model, which requires that transaction costs are capitalized.

The Fair Value Through Net Income Model Requires That