Equity Investments: Classification & Fair Value

Two equity investments are both measured at fair value. One is FVTPL, one is FVTOCI. For the FVTPL one, where do its unrealized fair-value changes AND its dividends land?

Under ASPE §3856, a company holds a nonstrategic equity investment in a private company with no active market quote. How is it measured, and where would fair-value changes go?

An investor has joint control over an investee (shares control under a contractual arrangement). Equity method or consolidation?

Under the cost method, how is an equity investment measured and when is income recognized?

An investor holds a small minority stake but sits on the board and shapes the investee's strategic decisions. Strategic or nonstrategic — and what measurement follows?

A company elected FVTOCI for an equity investment at purchase. Two years later it wants to switch to FVTPL. Can it, and when could the election have been made?

For a FVTOCI equity investment, fair-value changes go to OCI. Where do the DIVIDENDS go — and on sale, where does the accumulated OCI end up?

On disposal of a FVTOCI equity investment, does the accumulated OCI gain hit net income? Answer for IAS 39 vs IFRS 9.

Under IFRS 9, you hold a nonstrategic stake in a private company with no quoted market price. Can you report it at cost?

Under the old cost-based reporting of equity investments, an impaired holding later recovers in value before it is sold. Do you write it back up?

A FVTPL equity investment is highly liquid and quoted daily, but management plans to hold it for three years. Current or noncurrent asset?

An investee pays a dividend partly representing a 'return of capital' (a liquidating dividend). Under current standards, how do you book it?

An investee keeps paying dividends that outrun the profits it has earned since you bought in. What is that excess called, and what does it really represent economically?

Four companies hold an identical, rising equity investment but report it under cost, equity, FVTPL, and FVTOCI. Their current and return-on-equity ratios come out different — which method flatters the numbers most, and does the underlying reality actually differ?

A private company using ASPE holds preferred shares of another company and is not preparing consolidated statements. How the preferred shares are measured hinges on one attribute — which one?

Under IFRS 13, fair value is an 'exit price.' Concretely, whose price and which direction does that mean for an asset you hold?

A FVTOCI investment's cumulative unrealized gains build up in accumulated OCI. On the balance sheet, does that balance get reported inside retained earnings, or somewhere else in equity?

The equity method and consolidation dominate strategic investments, so when would a company applying IFRS ever fall back on the cost method for an equity investment?

Under ASPE, a company holds an investment in an associate (significant influence). Is it locked into the equity method the way IFRS requires?