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If the equity investment is held at FVTOCI, do we transfer the balance in OCI, on the date of disposal of those investment, to SOPL ? .. Or we simply transfer that balance in retained earning through changes in equity?
ThanksI know that the balance in OCI can’t be transferred to SOPL until the equity investment are sold ..but I’m unsure of the treatment on the date of disposal.
Ques2. Also i want to ask that .. Whether the profit/loss from SOOCI is also transferred to retained earning or is it transferred to some other component of equity?
TYSM.@alikhakar said:
I know that the balance in OCI can’t be transferred to SOPL until the equity investment are sold ..but I’m unsure of the treatment on the date of disposal.The amounts are treated as a reserve transfer in the SOCE and are not recycled through profit or loss.
Thanks
@alikhakar said:
Ques2. Also i want to ask that .. Whether the profit/loss from SOOCI is also transferred to retained earning or is it transferred to some other component of equity?
TYSM.I’m not 100% clear on what you’re asking here, but the gains are transferred from other components of equity, such as revaluation reserves, and taken to retained earnings in the SOCE. Hope that clears up your question. Let me know if it doesn’t.
Thanks
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