Originally Posted by
Strewth
last bit CPA 2017 is a change in HK accounting practices, hypothetical anyways refers to dividends. Bull**** mostly ain't complicated, terms so you won't ask what you asked, that ain't thick; gotta work out what business their in.
Do fuel and other derivatives pay dividends?
"These contracts are recorded at fair value and for the majority of them hedge accounting is applied, such that gains and losses arising from fair value changes are deferred in equity and recognised in the consolidated statement of profit or loss when hedges mature."
and
"If an equity security is designated as fair value through other comprehensive income, then only dividend income on that security will be recognised in profit or loss. Gains, losses and impairments on that security will be recognised in other comprehensive income without recycling. "
What exactly is ?other comprehensive income?? - IFRS
"
Some of these items (such as foreign currency translation adjustments and changes in the fair value of available-for-sale financial assets) are recognised in OCI but are then recognised again in earnings when the underlying item (that is, the foreign subsidiary or available-for-sale financial asset) is sold or realised. In other cases (such as actuarial gains and losses and revaluations of property, plant and equipment) there is no recycling."
so they were counting them twice, and now they likely can't?? hah