True false 16 selecting the fair value option for an

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Unformatted text preview: cting the fair value option for an available-for-sale investment is equivalent to reclassifying that investment as a trading security. True False 17. The fair value option cannot be elected for significant-influence investments because those must be accounted for under the equity method. True False 18. Under IAS No. 39, investments for which the investor lacks significant influence use basically the same reporting classifications as those used under U.S. GAAP. True False 19. Under IFRS No. 9, investments for which the investor lacks significant influence use basically the same reporting classifications as those used under U.S. GAAP. True False 20. Under IFRS No. 9, debt investments are classified as either "available for sale" or "fair value through profit and loss (FVTPL)." True False 21. Under IFRS No. 9, debt investments are classified as either "amortized cost" or "fair value through profit and loss (FVTPL)." True False 22. Under IFRS No. 9, equity investments are classified as either "fair value through other comprehensive income (FVTOCI)" or "fair value through profit and loss (FVTPL)." True False 23. Under IAS No. 39, transfers of debt investments out of the FVTPL category into AFS or HTM are permitted under "rare circumstances." True False 24. Under IFRS No. 9, cost can be used as an estimate of fair value in some circumstances. True False 25. The investment category for which the investor's "positive intent and ability to hold" is important is: A. Securities reported under the equity method. B. Trading securities. C. Securities classified as held to maturity. D. Securities available for sale. 26. Which of the following investment securities held by Zoogle Inc. may be classified as held-to-maturity securities in its balance sheet? A. Long-term debenture bonds. B. Common stock. C. Callable preferred stock. D. All of the above are correct. 27. Which of the following investment securities held by Zoog...
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This document was uploaded on 07/05/2013.

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