Dear Professor,
When we measure equity instruments at FVOCI, and there were transaction costs which we capitalised at initial recognition.
Now at the year end(first time remeasuring) when we are remeasuring the equity instrument, what is our Reference value(in other words which value do we compare our year end value with.... ???)
initial FV+ initial transactions costs
OR
just initial FV???
Many thanks!
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FVOCI equity instruments
5y ago#1Compare with amount capitalised which is:
Initial FV plus transaction costs
Respected Teacher,
If we go from a Trade Investment FVTOCI to obtaining control, the Gain/Loss at the point of bringing the existing investment to FV would go to OCI, correct? and we also shift all previous OCI to RE as well?
Secondly, what if we go from FVTOCI to an associate, where does gain or loss at the point of moving to an associate go for the original investment? Does it follow a similar treatment to when we obtain control?
Please, this would help me alot.
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