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Cost of equity investment

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Cost of equity investment

  • This topic has 3 replies, 2 voices, and was last updated 6 years ago by Stephen Widberg.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • November 15, 2019 at 2:15 am #552671
    Anonymous
    Inactive
    • Topics: 51
    • Replies: 52
    • ☆☆

    For parent financial statemnt, Why do many examples in calculation of disposal of equity investmemt use “cost” of investmemt? Shouldnt these be measured at FVTOCI?

    This is individual starment not seprate financial statement ias 27

    November 15, 2019 at 3:33 pm #552724
    Stephen Widberg
    Keymaster
    • Topics: 16
    • Replies: 3443
    • ☆☆☆☆☆

    Unless the subsidiary is listed on a Stock Exchange (which is unlikely because parent owns most of it) FV too subjective to determine, so they may well use cost in practice.

    November 16, 2019 at 10:10 am #552758
    Anonymous
    Inactive
    • Topics: 51
    • Replies: 52
    • ☆☆

    Ah i see thank you for your reply! 🙂

    November 17, 2019 at 9:06 am #552823
    Stephen Widberg
    Keymaster
    • Topics: 16
    • Replies: 3443
    • ☆☆☆☆☆

    My pleasure

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Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘Cost of equity investment’ is closed to new replies.

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