I gathered some info and wanted to share some basic assumptions in FR: Lumpsum investment
100 Units
115$ per unit AMFI daily Index- 2019/ Jan
250$ per unit AMFI daily index- 2020/ Jan
Cost of FVPL investment= 100*115= 11,500$
Cost of FVPL investment= 100*250= 25,000$
Recognise initially- Step 1
FVPL Investment 11,500$
To Bank a/c 11,500$
&
Transaction costs a/c 10$
To Bank a/c 10$
Next,
Old Carrying value= 11,500$
Revalued to= (11500*250/115)= 25,000$
After Revaluation in 2020 - Step 2
FVPL Investment a/c 13,500$
To Investment Income a/c 13,500$
Follow the above whenever there is revaluation in subsequent years. Then, during the disposal year @ 350$/ Unit
Disposing investment- Step 3
Bank a/c 35,000$
To FVPL Investment a/c 25,000$
To Gain on Investment sale 10,000$
This is as much as info for Lumpsum, now if we think about SIP method (Paid first month 1000$) ; Recognise FVPL Investment in asset at fair value of the investment ie., 11,500$ (or recognise SIP PV value instalment payments amount like in leases) and recognise SIP payables in Liabilities amounting to 10,500$ (11,500-1,000). Systematically, the liabilities will reduce when all instalments are met duly. Finally, on the date of redemption, Derecognise asset, debit bank and credit gain on investment. (Step 3)
There are several Mutual Funds schemes, purchase methods, Income options and can be adjusted like above. For information regarding daily NAV Index prices, try AMFI website.
Txs.
Note: leave a comment if there is a better way to do it.
CAclubindia
