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Problem 1: Movements in the fair value of equity investments are:
a. recognized in Other Comprehensive Income (OCI) for a financial asset at fair value through other comprehensive income (FVOCI)
b. not recognized in profit or loss (P&L) or Other Comprehensive Income (OCI) for an investment in associate
c. recognized in in profit or loss (P&L) for a financial asset at fair value through profit or loss (FVPL)
d. All of the above are correct.
At the end of last year, the business had a net cash flows of $310,000. What is the present value of this investment if the discount rate is 15%?
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