Page 32 - Topic 1 - 1. Consolidated & Separate Financial Statement

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

Accounting for investments bases

• Simple share investments

• Simple equity investments are to be measured at fair

value in the statement of financial position, with the fair

value changes recognised

• in profit or loss.

• The entity has an option to elect to recognise the fair value

changes in other comprehensive income (IFRS 9.5.4.1).

• The FVTOCI election can only be made if the equity

investment is not held for trading;

• if it is held for trading the fair value adjustment will be
recognised in profit or loss (FVTPL).

• Unquoted equities also have to be measured at fair

value (not at cost).

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