Impairment of Investments held in AFS
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10-17-2011, 12:46 PM
Post: #1
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Impairment of Investments held in AFS
Kindly confirm the treatment of impairment of Bond held as AFS
Before Impairment (asset is a Bond) Asset at Fair Value 90 Asset Face Value 100 Fair value deficit (in equity) 10 When impaired entry is made ________________________________________ Impairment expense (In PnL) DR 10 Deficit on fair value (In equity) Cr 10 ________________________________________ While the asset is still at 90 and there is no Provisioning liability, if further provisioning is not required. kindly confirm |
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10-17-2011, 08:50 PM
Post: #2
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Your entry is correct.
Regards |
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01-13-2012, 01:09 AM
Post: #3
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when cost assume is 100 and f.v is 90 then deficit will be i profit & loss
Impairment Loss 10 dr. Investment 10 cr. ithink so it will not be adjusted in equity. |
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12-24-2014, 08:20 PM
Post: #4
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RE: Impairment of Investments held in AFS
(10-17-2011 12:46 PM)ahsanalpha Wrote: Kindly confirm the treatment of impairment of Bond held as AFSEntry you have mentioned is incorrect. AFS impairment shall be taken to pl straight away. |
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