Holding shares less than 20%

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Leo
Posts: 908
Joined: 05 Apr 2020, 22:31

Holding shares less than 20%

Post by Leo »

Hi,

Sorry for that question, if a Holding holds less than 20% of shares (and no control established) of another company, which accounting standard should apply?

I'm thinking of IFRS9, is that correct?

My question is that whether I should record the investment at cost or at fair value.

Thank you, guys!

HAve a nice day.
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Marek Muc
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Re: Holding shares less than 20%

Post by Marek Muc »

the question is whether it is an associate or not:
https://ifrscommunity.com/knowledge-bas ... influence/

if not, then IFRS 9 at fair value (FVTPL or FVOCI)
https://ifrscommunity.com/knowledge-bas ... abilities/
Leo
Posts: 908
Joined: 05 Apr 2020, 22:31

Re: Holding shares less than 20%

Post by Leo »

thank you !
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