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Hi, could you please explain about OCE? We don’t use OCE; instead, we use AOCI (Accumulated OCI). I’m very confused. I believe it is a way that the US does…
1. Is “other components of equity” only used in ACCA for exam purposes, or is it widely used in IFRS in publicly traded companies in the UK or Europe???
2. Is OCE a “fixed format” in the SOFP that include all equity subjects other than Share Capital and Retained Earnings, such as Evaluation Surplus (or Revaluation Reserve), Share Premium, etc.?
3. Or can it be revealed in this way? Under the Equity item of SOFP, there are Share Capital, Retained Earnings, Share Premium, and other equity subjects put into OCE??? ( I mean Share Capital, Retained Earnings must be disclosed separately, but is it possible to pull out Share Premium or Revaluation Surplus of OCE separately and put the rest in OCE?)
I think only one of 2. or 3. is correct
Thank you very much.To give further information to 3. In Tesco’s Equity in SOFP. Equity includes 1.Share Capital 2. Retained Earnings 3. Share Premium 4. Other Reserves. Is other “Other Reserves” so called OCE in the ACCA exam? P.S. Tesco is the only company that I came across …
Hi,
Other components of equity (OCE) is what you see in IFRS and therefore in the FR exam where you are studying under the IFRS rules. You do not need to worry about what is done under US GAAP.
Yes, you could put both share premium and the revaluation gains in the OCE line on the SFP but you are not obliged to and can split if you so wish. You will usually be guide by what the company has included already in the TB to see if they have separate line items for each one or have combined into one OCE line that includes both.
Thanks
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