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?
IFRS 9- Equity Instruments
IFRS 9- Equity Instruments
Last edited by bambulka on 06 Apr 2021, 14:22, edited 2 times in total.
Re: IFRS 1- Equity Instruments
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?
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?
Re: IFRS 9- Equity Instruments
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.
Re: IFRS 9- Equity Instruments
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?