New! BPP Books for ACCA September 2022 Exams are now available, get your discount code >>

Reclassification from OCI to SPL

This topic has 3 replies, 2 voices, and was last updated 1 year ago by Stephen Widberg.

Viewing 4 posts - 1 through 4 (of 4 total)

Author

Posts
May 30, 2021 at 3:13 pm #622314
osamasyed123
- Topics: 50
- Replies: 42
Hi there Sir
In your newly recorded lectures during the chapter financial assets liabilties etc.
You told us that there is no longer any reclassification of items from equity to SPL ?

So any questions in our BPP kit which have mark scheme answer indicating that transfer

We should ignore it? right?
May 30, 2021 at 4:36 pm #622323
Stephen Widberg
Moderator
- Topics: 10
- Replies: 2526
I think you are referring to sale of FVOCI instruments.

Equity – no recycling of gains or losses from equity to P&L. (There is still a reserve transfer to RE but that’s not the same as it doesn’t affect EPS etc, so, in this syllabus it’s regarded as rather dull. :))

Debt – gains or losses are recycled.
May 31, 2021 at 1:02 pm #622422
osamasyed123
- Topics: 50
- Replies: 42
Okay so if a debt instrument is carried through FVOCI then its gains and losses will be recycled?
June 1, 2021 at 11:58 am #622608
Stephen Widberg
Moderator
- Topics: 10
- Replies: 2526
Yes -100%!
Author

Posts

Viewing 4 posts - 1 through 4 (of 4 total)

You must be logged in to reply to this topic.