Chartered Professional Accountant (CPA) Core 1 Practice Exam 2026 – Your All-in-One Guide to Exam Success!

When equity instruments aren’t quoted in an active market under ASPE 3856, you use the cost model for subsequent measurement. If there’s evidence that the value has declined and may not be recoverable, you recognize an impairment and reduce the carrying amount to recoverable amount. In other words, the measurement is cost less impairment. Since this is an equity investment not traded in an active market, fair value isn’t used, and you don’t apply amortized cost or net realizable value as the ongoing basis.