Chapter 16: Equity Investments (Dividends, Share Split and Share right)

Question 1

What are 5 Equity Investments?

Answer 1

1. Trading Securities (Financial Assets at FVPL)
2. Nontrading Securities (Financial Assets at FVOCI)
3. Investmen in Associate
4. Investment in Subsidiary
5. Investment in unquoted equity instruments.

Question 2

When a financial assets is recognized initially, an enitity shall measure at ________________-

Answer 2

Fair value + Transaction costs that are directly attributable to the acquisition.

Question 3

T/F

Transaction cost of financial asset held for trading or FVPL shall not expensed immediately.

Answer 3

False

Question 4

The single cost is allocated to the securities aquired on the basis of their fair value.

Answer 4

Lump Sump