BA 3340 Lecture 20: 2018 summer semester lecture158
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N. b in this case the price has gone up the next yeard this aims to reverse the previous credit of 20d000 and create a balance of 10d000 on the debit side i. e. 30d000 in total. If there is a sale of shares: this effects: Net unrealised gains and losses account: this example involves in 10d000 shares were bought for per share and sold for . 50. N. b the second lines close the account and gain on sale is recognised in the pnl. Some slight differences to held-to-maturity investments: purchased receipt of dividends and all year-end adjustments are the same, differences in sale of asset: Allowance to value at market trading securities (-xa) Xx: for available-for-sale assets net unrealised gains/losses is included. Investments for significant influence (20-50% of voting shares): equity method. Used to reflect the degree of influence. Requires accounting techniques when: the investee records a profit/loss, the investee pays a dividend.
