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sandown 12/09

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › sandown 12/09

  • This topic has 1 reply, 2 voices, and was last updated 11 years ago by MikeLittle.
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  • May 17, 2014 at 4:41 pm #169214
    aishaasad
    Member
    • Topics: 159
    • Replies: 185
    • ☆☆☆

    Sir i do not understand the note iv
    the only thing that i was able to understand is the gain on equity instrument that will go through OCI and will be added to 26500
    and plz explain the dual effect of each
    moreover i am confused with the terms investment and equity instrument and other reserves they are really irritating me 🙁

    May 19, 2014 at 3:34 pm #169508
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23329
    • ☆☆☆☆☆

    When anyone buys equity shares in a company, they are making an equity investment. This is confirmed by the investor being given a piece of paper called an equity instrument

    Debit asset / investments $2,500 and credit OCI / Other Reserve

    OK?

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