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Forums › ACCA Forums › ACCA SBR Strategic Business Reporting Forums › IFRS 9: Equity instrument (FVTOCI)
Hi,
Investment in equity instruments (FVTOCI):
Q1) Must fullfill both of the followings?
Not held for trading;
AND held for the long-term
Q2) Derecognition of the Equity instrument (i.e: shares were sold)
Which method is correct?
Method 1
Gain on disposal of shares 3k:
1) Dr Cash 3k, Cr SPL 3k
2) A reserve transfer: Dr OCI accumulate gains, Cr Retained earning
Method 2
Gain on disposal of shares 3k:
Dr Cash 3k, Cr OCI 3k
OCI – Do nothing. Accumulate gains stay in OCI.
Any assistance you can provide would be greatly appreciated!
