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hi Mike
I’ve some doubt regarding note( iv) available for sale investment
here u’ve added gain 2500 =( 29000-26500 ) with investment income, which actually should be taken to the other comprehensive income right? as per IFRS 9, IAS 39 and should be added with other reserve
what about the profit on the sale of these investment ?
seperate line on profit/loss account should be shown for profit on sale of investment account right?
i.e 2200 (11000-8800) and it should be transferred to retained earnings right?
here you have icluded it just with r.e and has not recognized in the soci,
from ACCA website the answers of december 2009 shows they have included 1800 {(8800-7000), increase from the cost to carrying amount} with the profit on the sale of available of sale investment 2200 and a total of 2200 +1800 =4000 is shown as profit on sale of investment
and in the oci and from other reserve they have deducted 1800 as realised profit recycled /reclassified to income
why are they taking these prior periods gains to current years account ?? is it because it has disposed off??
which is the right method?
I’m confused
plz help……..
its showing different profit for the year in lecture, bpp revision kit and in acca website
what is the correct answerHi
I think the problem arises because of the issue of IFRS9 which changed the “rules”
When I recorded Sandown, to the best of my knowledge I was following the prescribed treatment at the time. I don’t think that ACCA change their answers to update them for each new IFRS that gets issued. The printed BPP solution ( I’ve not looked at it ) is probably the up to date version
Sorry to be so vague but I think that I’m probably correct
🙂
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