BUS 420 Chapter Notes - Chapter 2: Fair Value, Ias 39, Equity Method

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 420
• Professor: Arsineh Garabedian

Document Summary

With different methods for reporting investments in equity securities, which have. Investments in shares of another company changed over the past 12 years. A trend to measure more assets at fair value on an annual basis. Prior to 2005, it was typically reported at cost-based amount. Ias 39 was introduced in 2005, which investment can be reported at fair value. In 2009, iasb introduced ifrs 9 for nonstrategic investment, ifrs 9. Mandatorily effective for fiscal periods beginning on or after jan 1, 2018. Requires all nonstrategic investments be reported at fair value. Available-for-sale investments have been eliminated as a separate category of investments. In 2011, iasb introduced ifrs 13, which replaced the fair value measurement guidance previously contained in individual ifrss. Strategic investments are reported at values other than fair value. Nonstrategic investments are reported at fair value. Available for sale investments (afs) category no longer exists. Ifrs 9 deals with two types of equity investments.