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Hello Thanks for the response. 1. It is a mix, so in my income tax recon I start start with tax at 15% and post difference as “Effect of tax credit”? 2. I agree with you, but I think for this one there might be an accounting policy choice as IAS 12 is not that clear on how to treat tax credit or red...

Dear All, I need help, actually in my country, the income tax act provides that income are taxed at 15%. However when income are generated from exports tax is at 3%. What would be my tax rate for current tax and deferred tax computations? If my current tax rate is 15%, how would I treat that reduced...

Hi Marek

It’s okay. Thanks for letting me know!

Dear All, I have a scenario where, an insurance companies issues unit-linked products whereby if the contract matures, the policyholder gets 100% of the fund value however if the policyholder dies, the policy holder gets 1% death benefit free of charge. Throughout the policy life, management fees of...

Hello Ketan,

Apologies for late reply. You are correct to indicate that fair value measurement in line with IFRS 13 will continue.

Thanks.

Thank you all for your inputs. It did help me a lot.

Ketan Marwah wrote: ↑02 Jun 2023, 16:34 May I ask why no PnL line for the FV adjustment in option 1?

No P/l impact as the cash received is being treated as a repayment of the investment. So no P/l.

Agreed that it’s a presentation issue. There are 2 possibilities: Option 1: Dr Bank Cr Investment (No PL line item) or Option 2: Dr Bank Cr Div Income Dr PL with FV movement Cr Investment Very likely the effect will nullify in PL, as you guessed rightly that the distribution is effectively the impac...

The investment is fair valued through profit or loss.

Hello Marek and Ketan,

I didn’t think of any allocation, as I don’t think we would derecognise or treat the proceeds as “Proceeds from disposal” until the shares cease to be of value or redundant.

What do you think?

Hello Ketan,

Thanks a lot!

Hi Ketan, Thank you for the response! The way the liquidation has been done is very frequent in the UK. They indicate that if prior to a voluntary liquidation, an investor does not divest and sell its shares, then the only way of realising the investment will be through returns of capital to be made...

Hello, I have a scenario where, I hold 3% of equity investment in a company ("investee") which is listed. During my reporting period, the investee which was placed in voluntary liquidation and it was delisted. The only way of realising the investment given that the investment is in volunta...