Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Transfering from OCI to R.E (when a simple investment becomes an associate)
- This topic has 3 replies, 2 voices, and was last updated 9 years ago by MikeLittle.
- AuthorPosts
- April 20, 2015 at 10:36 pm #241983
Hello Mike
Hope you are fine.Would you please look at these two notes :
”December 2012, Q1, note iv” & ”June 2009,Q1, note c” .As far as I understood, In both of these notes, the parent has an investment (FVTOCI ) and by acquiring additional shares, the investment becomes an associate. Now the questions is that when the investment becomes an associate, what should we with the increase in the fair value of the investment (just before becomes an associate) ?
In December 2012, Q1, note iv, it is transferred from other component of equity to retained earnings but in June 2009,Q1, note c it is NOT transferred.
Would you please say :
1- What is the appropriate treatment?
2- The reason of this inconsistency between these two questions?Thank you in advance
Kind RegardsApril 21, 2015 at 6:55 am #242004Is it down to the issue of a new IFRS? do you think?
April 21, 2015 at 8:00 am #242027Hi,
I don’t know! What is the name of this news IFRS?
Now what does this new IFRS say? We should transfer or not ?April 21, 2015 at 9:40 am #242033IFRS 9 – it has replaced IAS 39
- AuthorPosts
- You must be logged in to reply to this topic.