Step acquisitions

This topic contains 5 replies, has 3 voices, and was last updated by Avatar of MikeLittle MikeLittle 1 year, 4 months ago. This post has been viewed 182 times

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    lsoltobaeva
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    Hi Mike,

    Is there a general rule regarding whether the gain/loss on re-measurement of investments to fair value should be reported in P/L or in SOCI?

    does this effected by applying partial goodwill or full goodwill presentation?


    Avatar of MikeLittle
    MikeLittle
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    No- the only general rule is to follow what Graham tells you. He will normally say ” ….. which has been classified as through profit and loss …” so take the movement through profit and loss!

    And I can’t see how partial / full goodwill could affect it


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    lsoltobaeva
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    • Topics: 21
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    There were two examples I came over regarding step acquisition.
    1) in the first – partial goodwill was applied and they posted gain from re-measurement to P/L
    2) in the second one with full goodwill application they posted gain to OCI.
    So, it came to my mind that maybe there is a rule or smth….

    then no…. ok! thanks!


    Avatar of MikeLittle
    MikeLittle
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    welcome


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    knylam
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    hi, normally it is stated in the question, right? something like FVTPL or FVTOCI?


    Avatar of MikeLittle
    MikeLittle
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    Yes

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