The accounting treatment of AFS securities under IAS 39

[匿名]

2008-03-25 5:05 pm

I'm reading an accounting textbook and found an article on the differences of accounting treatment for Available-for-sale securities between IAS and US GAAP.

It says that under IAS 39, when a firm remeasures the Available-for-sale securities at market value at each balance sheet date, the firm has an option to recognize all gains and losses in income or equity.

Since the textbook is published in 2003, I would like to know if IAS 39 still offers this choice of accounting treatment for AFS securities today.

Thank you very much for your help.

回答 (1)

用戶2576

2008-03-26 4:02 am

✔ 最佳答案

Under IFRS AFS assets are defined as being all financial assets that do not fall into one of the other categories. Gains or losses from revaluation of the asset are put through a reserve in Shareholders' equity, except to the extent that any losses are assessed as being permanent, and the asset is therefore impaired, under IAS 39, paragraph 58 or if the asset is sold or otherwise disposed of. If the asset is impaired, sold or otherwise disposed of the revaluation gain or loss implicit in the transaction is recognised as a revenue or expense.

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