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Hello Mike
Firstly please tell me what is irrevocable election and please do help me out with this question
Equity finincial assets in the trail balance qualify for the irrevocable election as it is not for trading purpose and entity has already made election to recognize gains and losses in the other comprehensive income.the investment consists of 5000equity shares in Luca ltd.every price has a market price of $3 in the stock exchange as at 30 sept 2014 . assume the transaction cost as immaterial how to deal with this please help
Thank youThe word “irrevocable” as applied to an election literally means that that election “cannot be called back”
That is, once the election has been made, it cannot be altered
The election in your post has been made to treat gains and losses through comprehensive income instead of the alternative of treating through profit or loss
There is no information in your post about any gains nor losses but, if there were, that gain or loss would be shown in comprehensive income and not in profit or loss
OK?
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