• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>

Equity investment Disposal

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Equity investment Disposal

  • This topic has 4 replies, 2 voices, and was last updated 9 months ago by alawi sayed.
Viewing 5 posts - 1 through 5 (of 5 total)
  • Author
    Posts
  • June 5, 2022 at 8:41 am #657406
    alawi sayed
    Participant
    • Topics: 174
    • Replies: 198
    • ☆☆☆

    Hello Sir,
    Q1
    In case of disposing of equity investment which have been measured at fair value through OCI then where the gain on disposal will go as well as the cummulative gain with regard to the same asset.

    Skeptic is about to dispose of an equity investment in another entity which is measured at fair value through other comprehensive income. Skeptic expects to make a gain on disposal; a cumulative fair value gain has already been recognised over the period of holding this asset.

    Select the correct accounting treatment of the gains in the year of disposal in accordance with IFRS 9 Financial Instruments.

    Gain on disposal  :where the credit will go : P&L
    OCI
    retained Earnings
    Reclassify to P&L
    Do not Reclassify to P&L
    Transfer to separate component of equity

    Cumulative gain  :where the credit will go : P&L
    OCI
    retained Earnings
    Reclassify to P&L
    Do not Reclassify to P&L
    Transfer to separate component of equity

    _________________________________________________________________________________
    Q2

    If we say that the investment is measured at faire value through p&L or faire value through OCI
    does this mean that the investment value will not appear in the balance sheet in assets and instead it will only go to those accounts.

    or it means that only their respective gain and loss will go there in P&l and OCI

    Thanks ,

    June 5, 2022 at 9:55 am #657431
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 6493
    • ☆☆☆☆☆

    Hi,

    If we dispose of an equity investment then we will record a profit or loss on disposal through profit or loss. This is simply calculated as the difference between the proceeds and the carrying value.

    If the investment is held as FVTOCI then the gains that have accumulated in reserves (other components of equity) will be transferred to retained earnings in the SOCIE.

    Thanks

    June 5, 2022 at 6:19 pm #657469
    alawi sayed
    Participant
    • Topics: 174
    • Replies: 198
    • ☆☆☆

    Thanks a lot Sir.

    What about my Q2 .

    Thanks,

    June 7, 2022 at 8:48 pm #657770
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 6493
    • ☆☆☆☆☆

    Sorry, totally missed the second question as there was an advert that diverted my attention.

    Yes, the investments appear on the SFP as NCAs and their classification (FVTPL or FVTOCI) will determine where the gain/loss will go.

    Thanks

    June 7, 2022 at 9:59 pm #657802
    alawi sayed
    Participant
    • Topics: 174
    • Replies: 198
    • ☆☆☆

    Thanks a lot for clarification.

  • Author
    Posts
Viewing 5 posts - 1 through 5 (of 5 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

ACCA News:

 

ACCA My Exam Performance for non-variant Applied Skills exams is available NOW

NEW! Download the ACCA Pass Guide

FREE Verifiable CPD for ACCA Members

ACCA mock exams and debrief videos

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

Donate

If you have benefited from OpenTuition please donate.

ACCA CBE 2023 Exams

Instant Poll * How was your exam, and what was the result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Latest comments

  • sashafarah on Statement of cash flows – Example 1 (revision) – ACCA Financial Reporting (FR)
  • MesumAliZaidi on The nature and structure of organisations – ACCA Paper BT
  • MikeLittle on Termination of Offer – ACCA Corporate and Business Law (LW) (ENG)
  • zan13898 on Termination of Offer – ACCA Corporate and Business Law (LW) (ENG)
  • Bukr on Life cycle costing (part 2) – ACCA Performance Management (PM)

Copyright © 2023 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy