Non Strategic Inv

what is the formula of a total comprehensive income statement

revenue - expenses + oci

what is the formula to get ending aoci

beginning AOCI + oci

what is the formula in the statement of changes in equity to get ending SE

beginning SE + share capital + contributed surplus + AOCI + NCI + RE

define strategic investments

investments made to control or significantly influence the operations of the investee

what is the primary objective of strategic investments

advance strategic operations

define non strategic investments

investments made to earn dividends or profit by actively trading

what are the two methods of accounting for non strategic investments under IFRS

FVTPL, FVOCI

when do you use FVOCI for accounting for non strategic investments

if elected

when do you use FVTPL for accounting for non strategic investments

if held for trading

how are transaction costs dealt under FVTPL

expensed

how are transaction costs dealt under FVOCI

capitalized

what is the JE for initial investment of non strategic investments

DR investment
CR cash

what is the JE if dividends are declared

DR dividends receivable
CR dividend income

what is the JE if dividends are paid out

DR cash
CR dividends receivable

what is the JE if the carrying value < FV at reporting period under FVTPL/FVOCI

DR investment
CR unrealized gain - FVTPL/OCI

what is the JE if the carrying value > FV at reporting period under FVTPL/FVOCI

DR unrealized loss - FVTPL/OCI
CR investment

what amount do you use if you only sell a portion of the investment

average price share

how are non strategic investments recorded under aspe

FVTPL or cost

what is the closing entry for an unrealized gain into AOCI under FVOCI

DR unrealized gain - OCI
CR AOCI

what is the JE for sale of an investment and you get a gain under FVOCI/FVTPL

DR cash
CR gain on sale - OCI/FVTPL
CR investment

what is the JE if the company elected to transfer AOCI to RE on disposal under FVOCI

DR AOCI
CR RE

what are the 2 pros of using FVTPL

transparent, earnings reflect full economic effect

what are the 2 cons of using FVTPL

high volatility in net income, affects key profitability ratios

what are the 3 pros of using FVOCI

smoother earnings trend, less noise in PL, preserves income based stability while impacting balance sheet ratios

what are 3 cons of using FVOCI

less transparent, economic g/l bypass net income, disposal gains are reclassified into RE but bypass income statement