Equity instruments subsequent measurement

Per SFRS 109, para B5.2.3, all investments in equity instruments and contracts on those instruments must be measured at fair value.

However, in limited circumstances, cost may be an appropriate estimate of fair value.

Usually the investment in the first year and very short period to date of measurement (I.e. year end date)

1) if insufficient more recent information is available to measure it, or

2) if there is a wide range of possible fair value measurements and cost represents the best estimate of fair value within that range

We can evaluate the two mentioned circumstances to apply the SFRS accordingly.

Bear in mind only in limited circumstances.

Thus, when investments have been more than a year, it is challenging to apply the above.