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Oh ok – I saw that but wasn’t sure that was what was being referred to. So I suppose that was a shortcut since we didn’t have any further info.
thank you
Sorry, here is the link
https://www.accaglobal.com/gb/en/student/exam-support-resources/professional-exams-study-resources/p2/technical-articles/pl-oci.htmlthe bit I quoted is in the section near the end titled Narrow approach to the OCI
Thank you
OK, thanks very much. i did think it might be a typo.
I think i was confused with the contracts because i don’t think of them as being purchased. So these are contracts held for trading and making a profit on what you are contracted to sell?Thanks very much for your response, I hadn’t properly thought through the differences in treatment depending on which party had the choice. so if its the investor with the choice the method of initial valuation is the same you would use for a convertible bond. I also found the guidance below from Deloitte which seems to clarify that there is an adjustment once the choice is made (I wasn’t sure there was):
‘Until now, IFRS 2 did not specifically address situations where a cash-settled share-based payment changes to an equity-settled share-based payment because of modifications of the terms and conditions. The IASB has intoduced the following clarifications:
On such modifications, the original liability recognised in respect of the cash-settled share-based payment is derecognised and the equity-settled share-based payment is recognised at the modification date fair value to the extent services have been rendered up to the modification date.
Any difference between the carrying amount of the liability as at the modification date and the amount recognised in equity at the same date would be recognised in profit and loss immediately.’Thanks for your help again!
ok I understand that now- thanks 🙂 I have watched almost all the lectures actually, I find them very helpful (this is an especially confusing topic for me!)
thank you