And equity investments can be accounted for as fair

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Unformatted text preview: eria that must be met under IFRS No. 9 to qualify for use of the amortized cost method. and IFRS No. 9 :: Does not allow the "held-to-maturity" approach for debt investments. and Equity investments :: Can be accounted for as "fair value through profit and loss" or as "fair value through other comprehensive income" under IFRS No. 9. and Fair value through other comprehensive income :: Similar to available for sale investments, except realized gains and losses are not reclassified into net income. and Accounting mismatch :: One of the circumstances in which the fair-value option can be used under IFRS. 139. Change from the equity method :: Change accounted for prospectively. and Financial instruments :: Encompass cash, equity securities, and debt securities and Unrealized losses :: Result from a decline in fair value prior to sale. and Change to the equity method :: Change accounted for retrospectively. and Unrealized gains :: When related to trading securities, they increase net income. 140. Securities held to maturity :: Requires positive intent and ability. and Unrealized holding gains and losses :: Reported in the income statement for trading securities. and Impairment of securities available for sale :: Requires recognition in the income statement if judged to be other than temporary. and Losses of investee :: Recognized only to the extent of carrying value under the equity method. and Amortization of a patent that was obtained in a business acquisition :: Reduces investment account under the equity method if its fair value is higher than its book value. 141. Investor's share of investee income :: Recognized as revenue for equity-method investments, but not for available-for-sale investments. and Additional depreciation :: Can be required in the future when, at the time an equity-method investment is made, the fair value of investee's identifiable net assets exceeds their carrying value. and Equity method :: Used when investor can significantly...
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This document was uploaded on 07/05/2013.

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