Current IFRS rules for equity investments that are traded in an active market require that they
A) can be accounted for under the cost model.
B) can be accounted for under the fair value through net income model.
C) should generally be accounted for under the fair value through other comprehensive income model.
D) cannot be accounted for under the fair value through net income model.

Question

Quizplus · Accepted Answer

According to current IFRS rules for equity investments that are traded in an active market, they can be accounted for under the fair value through net income model. The fair value through net income model measures investments at fair value with changes in fair value recognized in net income.

Current IFRS Rules for Equity Investments That Are Traded in an Active