- This topic has 1 reply, 2 voices, and was last updated 7 years ago by
.
- Posts
Please I am confused with the treatment of fair value through profit and loss and fair value through other comprehensive income . as recently I did questions about share but I was confused how to treat them.can you please help me with few examples so that I clearly I understand
I believe that the following extracts from IFRS9 (IASPLUS website) should clarify the position for you:
“Equity instruments
All equity investments in scope of IFRS 9 are to be measured at fair value in the statement of financial position, with value changes recognised in profit or loss, except for those equity investments for which the entity has elected to present value changes in ‘other comprehensive income’. There is no ‘cost exception’ for unquoted equities.‘Other comprehensive income’ option
If an equity investment is not held for trading, an entity can make an irrevocable election at initial recognition to measure it at FVTOCI with only dividend income recognised in profit or loss. [IFRS 9, paragraph 5.7.5]”Does that do it for you?
- The topic ‘Financial instruments f7’ is closed to new replies.