PLIZ HELP ME Understand what this question requires of me and also help in the treatment of held for trading investments which are recorded under current assets.

BG holds another investment, which it has correctly classified as held for trading. The fair value of this investment at 31 March 2011 was $42,000, although this has not yet been reflected in the financial statements.

on the statement of financial position it is recorded as $35 ,000..!

DO I record the gain or loss on fair value or do I add the difference to held for trading investment which equates to $7000??

The question tells you that the fair value of $42,000 has not yet been reflected in the financial statements. Therefore, it used to be worth $35,000 and it is now worth $42,000. The difference between the two is the increase in fair value.