Tuesday, 7 February 2012

Securities Designated at Fair Value - FRA

Accounting Treatment:
· Under both IFRS and U.S. GAAP, entity is allowed to initially recognize available for sale or held-to-maturity securities as investments at fair value.
· Accounting treatment of designated at fair value investments is similar to that of held for trading investments.
· At each subsequent reporting date, these investments are re-measured at fair value.
· Any unrealized gains or losses arising from changes in fair value are reported in the Income Statement.
· Interest received on debt securities and dividends received on equity securities are reported in Income Statement.

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