arsons Ltd entered into the following transactions which have not been reflected within the financial statements presented in Appendix 1: 1) 1,000,000 shares of Sigma plc. were purchased with cash on the 2 January 2020 at a price of £1.30 per share. At the time of the purchase, management elected to classify the shares under the ‘Fair Value through Other Comprehensive Income, FVOCI’ category in line with IFRS 9. At the year end, the shares of Sigma plc. were trading at a price of £1.55 per share. 2) As part of an employee assistance scheme, the company began to operate an interest-free loan scheme as follows: on the 1 January 2020, a total of £600,000 in loans were issued by cash to employees and were repayable in 3 years. The current rate of a similar 3-year loan is 3%. 1) Help show how the information can be accounted for and adjusted into the finacial statements according to IFRS
Financial Instruments
Carsons Ltd entered into the following transactions which have not been reflected within the financial statements presented in Appendix 1:
1) 1,000,000 shares of Sigma plc. were purchased with cash on the 2 January 2020 at a price of £1.30 per share. At the time of the purchase, management elected to classify the shares under the ‘Fair Value through Other Comprehensive Income, FVOCI’ category in line with IFRS 9. At the year end, the shares of Sigma plc. were trading at a price of £1.55 per share.
2) As part of an employee assistance scheme, the company began to operate an interest-free loan scheme as follows: on the 1 January 2020, a total of £600,000 in loans were issued by cash to employees and were repayable in 3 years. The current rate of a similar 3-year loan is 3%.
1) Help show how the information can be accounted for and adjusted into the finacial statements according to IFRS
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