Hi everyone
How do we recognise a put/call option in the balance using the fair value method and not hedge accounting.
Thanks and regards
Catherine

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Dear all.

I have a question on valuation of equity investments.
What is the best method to value an unquoted investment
Cheers
Shehzad  

Well for unquoted investment you could:
If there is substantial market and volume of such equity in the market then, you could value it using market price.
If there is not market, or if, say due to the legal implications (private co. for example), the equity cant have liquidity in the market due to restrictions in transferring such shares, net worth (intrinsic value) method can be used.
There are other options for valuations …

Hi
 
Can anyone respond to my email below?
 
Thanks and regards
 
Catherine
Hi
 
I would need your assistance on how to account for futures/options in the financial statements.
 
Thanking you in advance for your kind assistance.
 
Regards
Catherine
Catherine,

 
Have you looked at IAS39 already, because depending on that you can or cannot apply hedge accounting. Basically you have 2 methods either Cashflow hedging or fair value hedging. If you want to do hedge accounting you will be required to do a lot of prospective and retrospective testing to prove the effectiveness of your hedges. If you don’t do hedge …

My client A acquired 66% of B from C, included in the contract was the clause that C can exchange the remaining shares in B with shares in A.
Is it an embedded derivative?
Do I only disclose this in accounts or should I calculate its fair value/Intrinsic as part of my acquisition calculations.
If I have to calculate the fair value do I use the normal Black Scholes etc?
Thanks
Aneel

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Dear All,

As someone could let me know when all European entities should comply with the IFRS reporting format.
Up to now we comply with the LuxGaap or USGaap but I heard that we should report next January 2008 in IFRS.
Have you the article who mentioned this transition ?

Thanks and kind regards
Dominique

 
 
Dear Dominique,Per my understanding all EU entities should comply with IFRS in 2007.
See extract below:
“Currently, the EU has adopted all IFRSs, though one aspect of IAS 39
was modified. The modification affects only a small percentage of EU
banks following IFRSs. Also, EU …