Under the fair value through other comprehensive income (FV-OCI) model, holdinggains and losses are normallySelect one:a. recognized in other comprehensive incomeO b. accumulated in retained earningsc. not recognized but are mentioned in the notes to the financial statementsd. recognized in net income If a company invests in the debt instrument of another entity, any premium ordiscount is:Select one:a. included in other comprehensive income and amortized over the life of the instrument.b. included in the carrying value of the instrument and not amortized.c. amortized as part of interest income over the life of the instrument.d. immediately expensed to income.

1. Fair Value Through Other Comprehensive Income (FV-OCI) Model:Correct Answer: a. recognized in…

Under the fair value through other comprehensive income (FV-OCI) model, holding gains and losses are normally Select one: a. recognized in other comprehensive income O b. accumulated in retained earnings O C. not recognized but are mentioned in the notes to the financial statements O d. recognized in net income

Under the fair value through other comprehensive income (FV-OCI) model, holding gains and losses are normally Select one: a. recognized in other comprehensive income O b. accumulated in retained earnings O C. not recognized but are mentioned in the notes to the financial statements O d. recognized in net income

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Under the fair value through other comprehensive income (FV-OCI) model, holding
gains and losses are normally
Select one:
a. recognized in other comprehensive income
O b. accumulated in retained earnings
c. not recognized but are mentioned in the notes to the financial statements
d. recognized in net income

If a company invests in the debt instrument of another entity, any premium or
discount is:
Select one:
a. included in other comprehensive income and amortized over the life of the instrument.
b. included in the carrying value of the instrument and not amortized.
c. amortized as part of interest income over the life of the instrument.
d. immediately expensed to income.

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