IFRS 9Chapter 5Lesson 3
Equity instruments: the other comprehensive income election and the fair value option
Step 1 of 7Learning objectives
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An equity investment is at FVTPL by default; the entity may irrevocably elect to present its fair value changes in OCI, with no recycling, and may also designate an asset at FVTPL to remove an accounting mismatch.
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Learning objectives
- Explain why equity instruments are at FVTPL by default.
- State the conditions of the OCI election and its consequence of no recycling.
- Record the measurement and disposal of an investment elected at OCI.
- Describe the fair value option for a financial asset.