- This topic has 1 reply, 2 voices, and was last updated 1 month ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
- Posts
Good morning Chris. I am hoping you can help me with chapter 11 Financial Instruments, Ex1, question two. I have watched the video which I found really helpful, however the video did not deal with the derecognition when the shares were sold on 31st January 2016. Please can you confirm if the below entries would be correct for the derecognition:
Dr Bank £650,000
Cr Investment £620,000
Cr OCI £30,000Thanks Chris,
EdwardHi Edward,
When a financial asset is sold the gain/loss is recognised through profit or loss. It does not matter how it has been initially classified.
The previously recognised gains in OCI are not reclassified to the profit or loss but are transferred to retained earnings as a reserve transfer in the SOCIE.
Thanks
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.