Management and Organizational Studies 4465A/B Lecture Notes - Lecture 2: Current Asset, Impaired Asset, Retained Earnings

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 4465A/B
• Professor: Danny Morrison

Document Summary

There is now a trend to measure more assets at fair value on an annual basis. Fair value through profit and loss (fvtpl) investments: Include investments held for short-term trading and any other investments reporting entity wishes to designate fvtpl. Classified as current assets since they actively trade and are intended to be sold within one year. They are recorded at fair value: unrealized gains/losses and dividends received or receivable are reported in income. Difference between the market and book value (change) x number of shares. This investment shows the best liquidity and profitability: cash and dividend income for dividend payments. Classified as current or non-current assets depending on how long management intends to hold these shares. Unrealized gains/losses are recorded in other comprehensive income (oci), and dividends are recorded in income. Cumulative gains/losses are cleared out of accumulated oci and transferred directly to.