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sir when measuring debt instruments held as assets using FVOCI we recycle any gains/losses (at the redemption or realisation of investment) to SPL.
However as far as equity instruments are held as financial assets, we can’t recycle any gains/losses to SPL upon realisation of asset’s worth/ disposal of asset.
Sp why this discrepancy in treatment? why is the treatment for debt and equity the way it is? any light you would want to shed on this?
Many thanks as always!
Humbled to have you!
You are correct – and the rule changes every 3 or 4 years.
Same as inconsistency in that IP gains are in P&L and PPE gains are in OCI (and not reconciled)
For the exam I’m afraid that we just have to obey the rule. 🙂