Entries to reclass investm’t@FVTPL to Assoc IAS28?

Transition from IFRS 9 investment @fvtpl to IAS 28 Equity method

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Company wants to increase it shareholdings from say 8% to 20%. Target company is listed.

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By lionofludesch
12th Sep 2023 07:16

And ........?

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By David Ex
12th Sep 2023 11:53

If a company is large enough to acquire a 20% stake in a quoted company, surely there is access to an accountant au fait with technical matters like this. Or is it a homework question?

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Replying to David Ex:
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By paul.benny
12th Sep 2023 14:44

Definitely a homework question.

If the OP knows how an investment would be accounted for under IFRS9, and knows how to account the increased holding under IAS28, the entries themselves are straightforward.

Obviously, they will have considered whether the larger holding then meets the qualifying criteria under IAS28, or whether any of the exemptions are applicable.

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By Bobbo
12th Sep 2023 13:41

My guess is that the entries might involve debiting something and crediting something else.

Without any further information from you, i'm not sure anybody could say much more than that.

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