07-13-2003, 04:05 PM
Asalam o alaikum
Under IAS 39, Availalble for sale investments should be carried at their fair value at subsequent dates aswell. This gain maybe taken to to Income statement or directly to equity (either of the one).
Upon disposal of such (or part) of investments, we take the relative portion of 'gain previously charged to equity' back to the Income statement.
My question is, if we are disposing off a part of this investment portfolio (that was acquired at different times and at different costs), then how are we going to determine the cost of the disposal?
Is it going to be an 'average cost' or 'fifo basis' or like previously 'lifo basis', or the actual cost??
I'm asking because I think the IAS 39 is silent on this issue.
Thanks
Further, are we going to assign any cost to shares acquired as a result of bonus dividend (i.e. their ex-dividend market price) and charge the amount to Income statement as 'dividend income' or are we going to use it to absorb the cost of previously held shares, and the result going to equity as the difference of that 'absorbed cost' and fair value???
Me rulz
Under IAS 39, Availalble for sale investments should be carried at their fair value at subsequent dates aswell. This gain maybe taken to to Income statement or directly to equity (either of the one).
Upon disposal of such (or part) of investments, we take the relative portion of 'gain previously charged to equity' back to the Income statement.
My question is, if we are disposing off a part of this investment portfolio (that was acquired at different times and at different costs), then how are we going to determine the cost of the disposal?
Is it going to be an 'average cost' or 'fifo basis' or like previously 'lifo basis', or the actual cost??
I'm asking because I think the IAS 39 is silent on this issue.
Thanks
Further, are we going to assign any cost to shares acquired as a result of bonus dividend (i.e. their ex-dividend market price) and charge the amount to Income statement as 'dividend income' or are we going to use it to absorb the cost of previously held shares, and the result going to equity as the difference of that 'absorbed cost' and fair value???
Me rulz
