A gain arising from a change in the fair value of an investment property for which an entity has opted to use the fair value model is recognized in A. Net profit or loss for the year. B. General reserve in the shareholders' equity. C. Valuation reserve in the shareholders' equity. D. None of the above.

Q: Q. Which of the following is within the scope of investments accounted for using the equity method…

A: Equity Method of accounting:           Any entity can invest in another entity by acquiring less…

Q: Under IFRS, the amount of capital received in excess of par value would be credited to: a.…

A:

Q: Which statement is correct about goodwill related to investments in associates? a. It is…

A: As per the accounting concepts, when the holding company acquire a subsidiary and goodwill is the…

Q: If an entity capitalized transaction costs to a financial asset at fair value through profit or…

A: Transaction costs seem to be the costs spent while purchasing or selling a product or service.…

Q: 17. Gain contingencies should a. be accrued if they are probable and can be reasonably estimated…

A: Gain Contingencies A gain contingency is an uncertain situation which will be resolved within the…

Q: Which of the following statements is true about conting consideration under the revised PFRS 3? O…

A: Contingent consideration is defined as the obligation or liability of the buyer or acquirer to…

Q: The following terms were introduced in this chapter:   Strategic investments Non-strategic…

A: Investments are the distribution of resources, usually monetary, with the goal of producing revenue…

Q: loses significant influence over the associate, the balance of the investment in the associate is…

A: When the company has significant influence over the associate, then equity method should be used for…

Q: In relation to investments and fair value, what are the two categories of investments that companies…

A: Investment: It refers to the process of using the currently held excess cash to earn profitable…