Sbr (int/UK) Strategic Business Reporting

 

15 

At the reporting date, the asset is remeasured to its fair value of $8.5 million 

and carried at this amount on the statement of financial position. A loss of $0.8 

million ($9.3m – $8.5m) is presented as other comprehensive income. (1 mark) 

The asset’s credit risk has not increased significantly and so a loss allowance 

should be calculated equal to 12 month expected credit losses - i.e. $0.2 

million.  

  

(1 mark) 

The 12 month expected credit losses of $0.2 million are debited to profit or 

loss and credited to other comprehensive income. 

(1 mark) 

The net amount reported in other comprehensive income is therefore $0.6 

million ($0.8m – $0.2m). This is presented as an amount that may be 

reclassified to profit or loss in the future. (1