Forum Replies Created
- Posts
Hello,
I was also confused about this but then I found IAS 39Available-for-sale financial assets (AFS) are any non-derivative financial assets designated on initial recognition as available for sale or any other instruments that are not classified as as (a) loans and receivables, (b) held-to-maturity investments or (c) financial assets at fair value through profit or loss. [IAS 39.9] AFS assets are measured at fair value in the balance sheet. Fair value changes on AFS assets are recognised directly in equity, through the statement of changes in equity, except for interest on AFS assets (which is recognised in income on an effective yield basis), impairment losses and (for interest-bearing AFS debt instruments) foreign exchange gains or losses. The cumulative gain or loss that was recognised in equity is recognised in profit or loss when an available-for-sale financial asset is derecognised. [IAS 39.55(b)]
Since in the question is mentioned that fair value adjustments are recognised in other reserves it got me thinking that maybe the examiner was refering to treatment under IAS 39. Also IFRS 9 will replace the earlier IFRS for financial instruments, IAS 39, when it becomes effective in 2018. Do you think this is correct?
Exactly my question, why wasn’t the interest on loan registered in the answer to this question?
A part of loan notes were issued as a payment for the acquired shares in Strata (susidiary) 1500. The rest of 10% loan notes 8000 were already in issue at the date of acquisition.
Since in the question it was mentioned that purchase consideration was not registered I supposed that the interest would need to be registered as well for all loan notes.30% MTQ will not be in written form, check a model of CBE exam on the link bellow
https://www.accaglobal.com/gb/en/student/acca-qual-student-journey/qual-resource/acca-qualification/f4/specimen-exams.html