We need some guidance in connection to apply the rules explained in IAS 21 related to if investments AFS in capital instruments is a non-monetary item. 

Theses equity investments were made without the intention of take control on any company, just receipt the dividends and sale it in a high level.

Thanks

Roberto

Thanks Dessanti for your answer

Our position is less than 1%, we bought in the active market Euro a little position to speculate in market price.

The IAS 39 don’t include equity investment as applicable financial asset to recognized the gain or loss in foreign exchange in the current period income statement, as its explain as follows:

Available-for-sale financial assets (AFS)…. … Fair value changes on AFS assets are recognised directly in equity, through the statement of changes in equity, except for interest on AFS assets (which is recognised in income on an effective yield basis), impairment losses, and (for interest-bearing AFS debt instruments) foreign exchange gains or losses. ……..

However, the IAS 21 explain: Foreign Currency Transactions

A foreign currency transaction should be recorded initially at the rate of exchange at the date of the transaction (use of averages is permitted if they are a reasonable approximation of actual). [IAS 21.21-22]

At each subsequent balance sheet date: [IAS 21.23]

• Foreign currency monetary amounts should be reported using the closing rate.
• Non-monetary items carried at historical cost should be reported using the exchange rate at the date of the transaction.
• Non-monetary items carried at fair value should be reported at the rate that existed when the fair values were determined.

Exchange differences arising when monetary items are settled or when monetary items are translated at rates different from those at which they were translated when initially recognised or in previous financial statements are reported in profit or loss in the period, with one exception. [IAS 21.28] The exception is that exchange differences arising on monetary items that form part of the reporting entity’s net investment in a foreign operation are recognised, in the consolidated financial statements that include the foreign operation, in a separate component of equity; they will be recognised in profit or loss on disposal of the net investment. [IAS 21.32]

If a gain or loss on a non-monetary item is recognised directly in equity (for example, a property revaluation under IAS 16), any foreign exchange component of that gain or loss is also recognised directly in equity. [IAS 21.30]

We aren’t sure if IAS 21 applies to equity investment as AFS or equity investment as a subsidiary participation or as part of foreign operation, in that sense was focus our doubt.