My question is a two part one:
1.) Are Financial Instruments shown at cost or Market Value on AFS. Our auditors indicate that these should be shown at cost, then a note can be added indicating the Current Market value. (SME)
My director and I are a quite uncomfortable with this, due to current economic climate.
Which is correct in compliance with IFRS ? (9/39)
2.) At year end we have revalued the Financial Instruments to Market Value indicated on the Statements we receive from the FSP.
A column is displayed on these statements which indicate the Appreciation /(Depreciation) of these Financial Instruments. This "revaluation" we have debited / (credited) to the respective Financial Instrument and taken the balancing figure to Non-Distributable reserve (b/s).
The problem now arises that even though the "revaluation" figure agrees to FSP statements,the Financial Instruments that were traded on in the year, do not balance back to the FSP Statements received. ???
Any advice as to where the difference should go?
Income Statement ? Financial Instruments (Market to Market Profit / (loss)