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Can i know what is an accounting mismatch and when does it arrive?
Also can i know why in some certain circumstances gain and losses of financial instruments classified through FTOCI are not reclassified to PNL and what does it mean by that cumulative gains are transferred within equity?
It means that a financial liability is held at say FVTPL but a similar liability is held at amortised cost. If they are similar then they should be accounted for in the same manner.
Not sure about the last point, where have you noticed that? Any gains/losses on FVTOCI are reclassified through profit or loss on disposal.
Thanks
the last part was from the answer to DEC 2014 Q2(a) Coatmin
” ……….. Amounts presented in other comprehensive income are not
subsequently transferred to profit or loss, and the entity may only transfer the cumulative gain or loss within equity. Thus
Coatmin should charge $5 million to OCI and $45 million to profit or loss. “Hi,
This is a ridiculously tiny part of IFRS 9, whereby if you have a financial liability at FVTPL then any change in its fair value due to changes in the creditworthiness are taken through OCI and not profit or loss. Any amounts then held in OCI are not then allowed to be recycled through profit or loss in the future.
I seriously doubt that anyone in the exam would have known this.
Thanks
Hi in Minny Q1 DEC 2012
Can i know why is there a movement from OCE to RE of 3 relating to Equity investment?
is it related to the question i asked before (ie:
@amnanihal said:
Also can i know why in some certain circumstances gain and losses of financial instruments classified through FTOCI are not reclassified to PNL and what does it mean by that cumulative gains are transferred within equity?
Hi,
No it is totally unrelated. It is the gain on the previously held 14%, which has increased from $18 million to $21 million.
Thanks
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