IFRS 9 - FVOCI Investment in Equity
Posted: 18 Jan 2022, 17:36
Hello
I am been working at accounting firm, there i have seen an investment classified at FVOCI (With no Recycling). Investment is in an unlisted/unquoted Company.
Investment was made at price of Rs. 9.8 per share then later valued at Rs. 10 per share. Valuation was made through Discounted Cashflow Method or Free Cashflow Method. The Company's Breakup value is Rs. 24.12. The question is can a breakup value be more than the Fair value of Rs.10 and if cant be than what will be the accounting treatment?
I am been working at accounting firm, there i have seen an investment classified at FVOCI (With no Recycling). Investment is in an unlisted/unquoted Company.
Investment was made at price of Rs. 9.8 per share then later valued at Rs. 10 per share. Valuation was made through Discounted Cashflow Method or Free Cashflow Method. The Company's Breakup value is Rs. 24.12. The question is can a breakup value be more than the Fair value of Rs.10 and if cant be than what will be the accounting treatment?