http://fundpicksandpansstocks.com/what-is-the-accounting-for-investments-in-mutual-funds.html Data markets, stocks, dow, nasdaq, cnnmoney jones. Mon, 21 Mar 2011 16:53:26 +0000 http://wordpress.org/?v=2.9.2 hourly 1 http://fundpicksandpansstocks.com/what-is-the-accounting-for-investments-in-mutual-funds.html/comment-page-1#comment-2205 Sandy Wed, 09 Jun 2010 01:16:54 +0000 #comment-2205 Presumably the intention at the outset is to hold these investments for long term. These would be classified as Available-for-sale financial assets (AFS assets). The initial recognition is to record the acquisition at cost (which would be the fair value at that time). At each subsequent balance sheet date, they are measured at the fair value, with any fair value changes recognised directly in equity, through the statement of changes in equity, NOT in the income statement. When the AFS assets are derecognised, the accumulated fair value changes previously taken to equity would be taken to the income statement. Presumably the intention at the outset is to hold these investments for long term. These would be classified as Available-for-sale financial assets (AFS assets). The initial recognition is to record the acquisition at cost (which would be the fair value at that time). At each subsequent balance sheet date, they are measured at the fair value, with any fair value changes recognised directly in equity, through the statement of changes in equity, NOT in the income statement. When the AFS assets are derecognised, the accumulated fair value changes previously taken to equity would be taken to the income statement.

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