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Chapter 20
Example 3.4 cont'd
Subsequent treatment
The subsequent treatment of an available for sale financial asset is to revalue to
fair value, with any gains or losses taken to other comprehensive income.
$
Fair value at year end (15,000 × 7.35) 110,250
Carrying amount 96,450
–––––––
Gain to other comprehensive income 13,800
–––––––
Dr AFS financial asset 13,800
Cr AFS reserve 13,800.
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