- This topic has 3 replies, 2 voices, and was last updated 1 month ago by .
Viewing 4 posts - 1 through 4 (of 4 total)
Viewing 4 posts - 1 through 4 (of 4 total)
- You must be logged in to reply to this topic.
Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Fair value of investment in equity instrument
Why is the loss on fair value of investment in equity instrument pro-rated for inclusion in the consolidated statement of profit or loss .
It will state in the question that the gains/losses arise evenly over the year unless told otherwise. If we’re not told otherwise, which is likely the case here, then we pro-rate it.
But the loss on fair value of investment in equity instrument seems to be a capital loss and not revenue loss which seems to occur at a point in time like revaluation surplus and not over the year so how could it be pro-rated
Agree but just follow as instructed in the question.