COMMERCE 4AC3 Chapter Notes - Chapter 2: Ias 39, Fair Value, Stock Trader
Document Summary
Many methods in reporting investments in equity securities. L01 equity investments the big picture: equity investment = investments in shares of another company, two main categories: (1) strategic. Investment is for the purpose of lt & usually has some influence on decisions of the company. Investor just wants a return on their investment, & does not want an active role in the decisions of the company: prior to 2005. Investments were written down if there was an impairment, but not written up if they increased in value: gains were only realized @ sale of investment, as well, investments only recorded @ cost-based amount. In 2009, ifrs 9 introduced: pretty much replaced ias 39. Ifrs 13 = fair value measurement: fv defined as, price received to sell an asset or paid to transfer a liability in a transaction @ measurement date.
