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For first paragraph and last sentence
“Instead, an amount equal to the ECL allowance which would arise if the asset were measured at amortised cost is recognised in OCI”What does it mean?
Thank you.This is old syllabus
Please can you give me a reference your revision kit
If some of the loss in value is because the debt is potentially bad that amount should be recognised in profit and loss.
So the bond has fallen in value from 6,000,000 to 5,300,000 and of the change in value 400,000 is because of potential bad debt.
So 300,000 will be debited to OCI and 400,000 to P and L
So does it mean that the 400,000 will be recognise in the OCI if the financial asset is measured at amortised cost instead of FVTOCI based on the last sentence of the paragraph quoted above?
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