How is the interest income of investment in debt securities

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Problem 1: Which of the following investment in equity securities shall be properly classified as current asset?

a. Financial asset at fair value through profit or loss

b. Financial asset at fair value through other comprehensive income

c. Investment at cost

d. Investment in associate

Problem 2: How is the interest income of investment in debt securities classified as financial asset at fair value through profit or loss computed?

a. Face value x nominal interest rate x passage of time

b. Book value x effective interest rate x passage of time

c. Amortized cost x effective interest rate x passage of time

d. Fair value x nominal interest rate x passage of time

Reference no: EM132772426

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