Essay About Transaction Costssubsequent Measurementat Fv And Equity Instruments

Equity Instruments – Debt Instruments
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Equity InstrumentsDebt Instruments FA @ FVPLFA @ FVOCIFA @ FVPLFA @ FVOCIFA @ ACNature of instrumentTrading securities AND nontrading securities for which the entity exercised its option to classify as at FVPL.ONLY nontrading securities for which the entity exercised its option to classify as at FVOCI.Debt instruments PRIMARILY held for trading.Debt instruments acquired for BOTH trading AND collection of contractual cash flows which are solely payments of principal and interest.Debt instruments acquired with the objective of collecting contractual cash flows which are solely payments of principal and interest.Initial recognitionPurchase price ONLYPurchase price + transaction costsPurchase price ONLYPurchase price + transaction costsPurchase price + transaction costsSubsequent measurementAt FV, w/changes in FV taken to P&L.At FV, w/changes in FV taken to OCI.At FV, w/changes in FV taken to P&L.At amortized cost, w/changes in FV taken to OCI (use FV adjustment account to accumulate changes in FV).At amortized cost.Income earnedDividend incomeDividend incomeInterest income (at stated rate)Interest income (using effective interest)Interest income (using effective interest)Upon disposal/ derecognitionGain/loss: SP less FV on last remeasurement dateUpdate FV using SP, with the change in value recognized in OCI. The cumulative change in value (i.e. unrealized gain or loss) shall remain in equity (e.g. RE) and no amount shall be recognized in P&L.Gain/loss: SP less FV on last remeasurement dateUpdate first the amortized cost. Then update CV (amortized cost +/- FV adjustment) using SP, with the change in value recognized in OCI. The balance of FV adjustment account (which must be equal to the OCI account) right before the sale shall be the gain/loss on sale w/c is taken to P&L.Gain/loss: SP less CV of instrument on date of sale.