Which of the following statements is INCORRECT regarding fair value adjustments for investments?
A. Both FV–NI investments and FV–OCI investments could include equity investments or investments in debt securities.
B. FV–OCI investments exclude debt securities.
C. At each period end, an estimate is made of the fair value of both FV–NI and FV–OCI investments.
D. An adjusting entry is required to record a holding gain or loss on FV–NI investments.
Answer:A
Which of the following statements is INCORRECT regarding fair value adjustments for investments?
A. Both FV–NI investments and FV–OCI investments could include equity investments or investments in debt securities. B. FV–OCI investments exclude debt securities. C. At each period end, an estimate is made of the fair value of both FV–NI and FV–OCI investments. D. An adjusting entry is required to record a holding gain or loss on FV–NI investments.