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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › De-recognise Financial Assets
Hi Chris,
When a Financial asset is disposed, and there are gains previously recognised through other Comprehensive Income, (so they will be transferred to retained earnings through the SOCIE), does this also mean that we would need to report a ‘loss’ in the OCI (of the same amount as the transferred value)?
Thanks and Regards,
Tim
Hi Tim,
No, it is just a reserve transfer though the SOCIE, the same is if we were to transfer the revaluation surplus to retained earnings on disposal of PPE that has been previously revalued. All the accumulated gains/losses in these reserves will have arisen in prior years and so no adjustment to OCI is required in the current year as they have not arisen this year.
Thanks,