Chapter 27: Understanding investments

Question 1

Accounting treatment for equity instruments under ASPE and IFRS

Answer 1

ASPE: FV if actively quoted on market - otherwise cost method unless fv election

IFRS: FV, if short term gains or losses in profit or loss statement, if long term p or l statment or elect oci

Question 2

Accounting treatment for debt instruments under ASPE and IFRS

Answer 2

Aspe: amortized cost unless FV election
ifrs: amortized cost

Question 3

Accounting treatment for significant influence for equity instrument for ASPE

Answer 3

~20-50% equity method or fair value (if traded on active market) or cost
~50% Consolidation, or equity, or fair value

Question 4

Accounting treatment for significant influence for equity instrument for IFRS

Answer 4

~20-50% Equity Method
~50% Consolidaiton method