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Hello tutor,
I am a little confused about the treatment of impairment losses on financial assets measured at FVTOCI.
When we recognise such impairments losses, the double entries are:
Dr Profit or loss
Cr Other comprehensive income,
Right?What I’m unsure about is: where does the “credit to OCI” go to ultimately?
Does it go to OCE? And upon disposal of the financial asset, it gets reclassified within equity to RE?
Hi,
If there is an impairment loss would we not reduce the value of the asset and then take the impairment through profit or loss?
Thanks
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