X LLP is venture capital entity and it has accumulated funds from investor A and Investor B. X LLp would utilise the funds received from Investors A a B for investing in Startup entities. After 10 years, X llp would redeem the capital from Investors A along with returns ( obtained by disposing the stake in startup entity).
How should Investor A account for its stake in X LLP ? whether it should account at FVTOCI or FVTPL ?
Any reference to IAS -please advice?
Investment in Venture capital
Re: Investment in Venture capital
Guidance seems to be applicable for investment entity... but my clarification is how should the stake be accounted by Investor A. i.e., whether at FVTPL or FVTOCI !
Re: Investment in Venture capital
sorry, I thought you're asking about X.
For A, this applies: https://ifrscommunity.com/knowledge-bas ... abilities/
So FVOCI option is available at initial recognition.
Unless A has significant influence or joint control over X. If so - equity method should be applied.
https://ifrscommunity.com/knowledge-bas ... influence/
https://ifrscommunity.com/knowledge-bas ... nt-control
For A, this applies: https://ifrscommunity.com/knowledge-bas ... abilities/
So FVOCI option is available at initial recognition.
Unless A has significant influence or joint control over X. If so - equity method should be applied.
https://ifrscommunity.com/knowledge-bas ... influence/
https://ifrscommunity.com/knowledge-bas ... nt-control