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Hi,
but in BPP under financial instruments its mentioned that in case of
Debt instrument with the business model to sell/collect contractual cash flows the subsequent measurement is through FV through OCI (And transfer to P&L at the time of disposal/derecognition ), why can’t the same be followed for equity instruments as well?
Also for equity instruments its mentioned as
Equity instruments “not held for trading ” are classified as FV thru OCI (not transferred to P&L on derecognition)
I’m not sure why is there a difference in treatment
I had the same question in my cbe but the question was not “if is nci IS valued at fv” rather it was “If nci IS NOT valued at fv which of the following will not be affected….”
@mohdafzal said:
Yes. You are right mostly. but this question was surely not in my exam. Did you give CBE or PAPER based? Mine was paper based.This was the answer given in the notes. But i didnt quite understand how the “consolidated RE as per question” being equal to 530 K for D and 351K for L came.
Consolidated retained earnings D L
per question 530,000 351,000
– pre acquisition 150,000
?post acq 201,000
D’s share 150,750 75%
680,750Fair value is measured mostly at the end of the year right? (mostly except in situations of take overs or liquidation )
Sorry im asking you so many questions on Fair Value . This will be my last question on fair value.
Ohh Ok .. I got the answer to the second part of the question
Suppose in case of PP&E , if Revaluation method is used the the new value is measured using the Fair value measurement technique ( mostly through market research) and if such value results is lower than the book value then it is recognized as a loss and if it is more it is recognized as a profit.And if it is a liability that is revalued to fair value it will be the other way round. Am i right at least this time?
