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31-10-2014, 05:54 PM
(This post was last modified: 31-10-2014, 05:57 PM by specuvestor.)
^^^ The treatment actually determines if the MTM unrealised gains ie AFS reserve will be reversed out as a balance sheet entry:
Dr Investment in associate 150
Cr Investment in Equity Securities 200
Cr Cash 50
Dr AFS Reserve 100
or hitting the PnL:
Dr Investment in associate 250
Cr Investment in Equity Securities 200
Cr Cash 50
Dr AFS Reserve 100
Cr PnL 100
Nothing wrong with both MATHEMATICALLY but the principle will determine which is acceptable, that's why I thought it may be a new IFRS thingy
Dr Investment in associate 150
Cr Investment in Equity Securities 200
Cr Cash 50
Dr AFS Reserve 100
or hitting the PnL:
Dr Investment in associate 250
Cr Investment in Equity Securities 200
Cr Cash 50
Dr AFS Reserve 100
Cr PnL 100
Nothing wrong with both MATHEMATICALLY but the principle will determine which is acceptable, that's why I thought it may be a new IFRS thingy
Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give. –William A. Ward
Think Asset-Business-Structure (ABS)
Think Asset-Business-Structure (ABS)