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Hello.
What are the main difference in the preparation of conso FS for investment that are held as available for sale investment and equity instrument?
And also, about Bravado June 2009 question, additional info (iii) about Clarity from available for sale investment to associate (as it achieve significant influence), can you explain about the treatment of $1m realised fair value. I don’t get it the way it was explained in the solution, thank you.
Possibly the confusion arises with the alternative treatments proposed – either recycle through profit and loss or alternatively deduct it from the cost of the investment
I presume that you’re happy enough with the calculation of the 1m
i suggest you select the alternative with which you are happier and then apply that reasoning should the issue ever present itself in an exam
however, in suggested solution in BPP revision kit, there’s no $1m on realised FV. Stated in the book cost = fair value at date significant influence achieved which is 9. That’s where my confusion arise, different treatment.
What about available for sale investment and equity interest, what are the significant difference in treating this both, as the wording in the past year are changed in the BPP revision kit, resulting a complete different treatment of the items.
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