Page 75 - F2 Integrated Workbook STUDENT 2019
P. 75
Financial instruments
Subsequent treatment of financial assets: Equity
The purchase of equity instruments will be classified as equity financial assets e.g.
an acquisition of ordinary share capital.
Investment in
shares
FVPL Fair value through
other
If held for trading comprehensive
income (FVOCI)
(default
position) if not held for trading
and an irrevocable
choice to designate is
made
Revalue to fair Revalue to fair
value value
Gains or Gains or
losses to P/L losses to
equity/OCI
On disposal of FVOCI equity financial assets, the gains or losses held in OCI WILL
NOT be reclassified into profit or loss on disposal.
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