As at 31 March 2018, DuckTales Ltd has another financial instrument which is shares in another company. These shares were purchased for the purposes of making a gain on the investment. Explain to Scrooge McDuck, the CEO of Ducktakes Ltd, how the financial instrument should be accounted for at the end of each financial year. In your answer you should outline how new values for the financial instrument could and should be determined and how any change would affect the financial statements.  

Answer rating: 100% (QA)

Solution As per IAS 109 Investment in Equity Shares are recorded at cost plus transaction Cost But a... View the full answer