top of page
  • Writer's pictureThomas Tsang

Accounting for equity instruments

When there is an investment in equity instrument, it is required to measure it subsequently at fair value per FRS109.

It is also required to charge the change in fair value to profit or loss.

You can irrevocably elected to charge the change in fair value to other comprehensive income if hold it not for sale. Any foreign exchange gain or loss be part of the fair value component. It is because the equity instrumen is an non-monetary item.

15 views0 comments

Recent Posts

See All

Prior year error

When there was a judgement made in prior year without concrete evidence of support. The audit should have qualified it. When in subsequent year, the judgement is changes with the intention to correct

Impairment test under US GAAP

Under US GAAP, the carrying amount of the assets is compared to the undiscounted future cash flow of the assets generated. If the amount of undiscounted cash flow is highr than carrying amount, no im

Discount on enterprise value

When apply discount on lack of marketability (DLOM) and lack of control (DLOC) on enterprise value (EV), it is a multiple of EV x (1-DLOM) x (1-DLOC). But apply the discount on Equity value would lowe


bottom of page