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Hello Chris,
In the question below, how will we know that it’s FVTOCI or FVTPL?ABC purchased 10,000 shares on 1 September 20X4, making the election to use the
alternative treatment under IFRS 9 Financial Instruments. The shares cost $3.50 each.
Transaction costs associated with the purchase were $500.
At 31 December 20X4, the shares are trading at $4.50 each.
What is the gain to be recognised on these shares for the year ended 31 December 20X4?Answer is 9500 because it’s FVTOCI
But my doubt is that in the question they have not mentioned anything like they want to hold it for long term. So how it’s FVTOCI?
Thank you!
Have a good day 🙂
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