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Hi Mike,
1) Want to check with u the difference beteeen FVTPL and FVTOCI for investment in equity.
2) my notes says:
“If the company invest in a listed co shares, the co can choose to designate the investment as FVTOCI if this investment is held for trading. I.e. The co intend to hold it for Long term. ”I can understand the part that if you hold the investment for Long term u can classify it as FVTOCI and short term then FVTPL. I can’t seem to understand the part that investment held for trading is holding it for Long term…
Shouldn’t investment held for trading be classified as for short term instead??
Thank u.
It looks like you’ve missed a “not” out from your notes
Here’s an extract from IASPLUS IAS 39 summary (https://www.iasplus.com/en/standards/ifrs/ifrs9):
“‘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]”
OK?
Yes it did Mike.. my Notes seems to have missed out the “not”!
Thanks for your explanation!
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