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june 2009 question 1(pacemaker)
i cant understand why gain/loss in FV of investmentsare taken into the retained earnings working. i searched about AFS investments and it says that the gain or loss in FV are taken to OCI and not P/L…so why here the FV gain/loss is taken to the RE?
Hi,
Any increase or decrease in Financial instrument is charged to income statement. As such it would affect retained earnings.
Thats the reason it has been considered within retained earning.Hope this helps.
Rajhey, thx for the reply. but becuase the investment in for sale, i think it is taken to OCI and not PL. what do u think?
dear monique, i see this point is troubling you a lot. Make note that available for sale category has been finished, re-read IFRS 9 for this matter. The amended question says either investment in equity instruments or investments – thru OCI.
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