2. An entity has 25% investment in ordinary share and 20% investment in preference share over the investee. Which of the following is TRUE? * The 25% interest may be classified as Investment at fair value and 20% may be classified as Investment in Associate Both investments may be classified as Investment in Associate Both investments may be classified as Investment at Fair Value The 20% may be classified as Investment at amortized cost and 25% may be classified as Investment at fair value

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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2. An entity has 25% investment in ordinary share and 20% investment in
preference share over the investee. Which of the following is TRUE? *
The 25% interest may be classified as Investment at fair value and 20% may be
classified as Investment in Associate
Both investments may be classified as Investment in Associate
Both investments may be classified as Investment at Fair Value
The 20% may be classified as Investment at amortized cost and 25% may be
classified as Investment at fair value
Transcribed Image Text:2. An entity has 25% investment in ordinary share and 20% investment in preference share over the investee. Which of the following is TRUE? * The 25% interest may be classified as Investment at fair value and 20% may be classified as Investment in Associate Both investments may be classified as Investment in Associate Both investments may be classified as Investment at Fair Value The 20% may be classified as Investment at amortized cost and 25% may be classified as Investment at fair value
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