IFRS 9- Equity Instruments

All topics related to IFRS Standards.
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bambulka
Posts: 14
Joined: 17 Mar 2021, 16:25

IFRS 9- Equity Instruments

Post by bambulka »

Equity instruments should be recognized at the inception at the fair value and subsequently measured through profit or loss or through OCI at the entity's options according to the IFRS 9. Please note that the equity instruments are shares in the publicly traded company that were part of the consideration in the disposal of a business.
What option is more advantageous to the Company? FVPL or FVOCI?
Last edited by bambulka on 06 Apr 2021, 14:22, edited 2 times in total.
JRSB
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Joined: 01 Mar 2020, 01:10
Location: UK

Re: IFRS 1- Equity Instruments

Post by JRSB »

What are you financial reporting objectives?

Are the shares likely to be strong performers or is it something that will be a headache...?

What are you planning to do with the shares?
bambulka
Posts: 14
Joined: 17 Mar 2021, 16:25

Re: IFRS 9- Equity Instruments

Post by bambulka »

We will eventually sell them, but not in the short term period. The company is well positioned in the market but its share price obviously fluctuates.
JRSB
Trusted Expert
Posts: 1309
Joined: 01 Mar 2020, 01:10
Location: UK

Re: IFRS 9- Equity Instruments

Post by JRSB »

I guess on one hand you might say these shares are just incidental to the trade, so keep them separate, in OCI, on the other hand you might want the (hopefully positive) fair value gains in earnings. The problem with the latter being you can' t go back and change it if things don't go to plan.. what is your thinking?
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