• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

FVTPL Vs. FVTOCI tax implications

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › FVTPL Vs. FVTOCI tax implications

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by P2-D2.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • January 27, 2018 at 9:38 pm #433481
    Stefano
    Member
    • Topics: 23
    • Replies: 28
    • ☆☆

    Dear Christopher,

    Would it be correct to say that classifying a financial asset at FVTOCI is more tax efficient than classifying it at FVTPL? Indeed, the revaluation initially made through OCI would not be taxed, would they? I know this is a bit out of topic, but I could not help but asking this question.

    Thank you very much,
    Stefano

    January 29, 2018 at 10:33 pm #433906
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7187
    • ☆☆☆☆☆

    Hi Stefano,

    The tax efficiency will depend on the tax rules in the tax jurisdiction. I’m no tax expert, but I think that any gains/losses in profit or loss are not taxed until the investment is disposed and there is then a capital gain/loss, hence the financial reporting treatment is irrelevant. If it is FVTPL or FVTOCI then the tax treatment is the same, a capital gain/loss arises on disposal, and so one is no more tax efficient than the other I believe.

    Good to see you thinking it through though and linking it to other subjects. Good work!

    Thanks

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • Abdjr11 on The cost of capital – The cost of equity – ACCA Financial Management (FM)
  • Durrani118 on Using Information Systems – ACCA Performance Management (PM)
  • Sejinpeter on MA Chapter 1 Questions Accounting for Management
  • ZaidRaza on IAS 16 Accounting for a revaluation – CIMA F1 Financial Reporting
  • mrjonbain on Chapter 11 Capital Gains Tax – Individuals TX-UK FA2023

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in