1. Long Term Maintenance and without this group of companies:
In the PGC Normal:
be considered, for purposes of valuation, as Financial assets available for sale .
be listed in non-current assets, accounts of group 25.
The initial assessment of these assets will be initially at fair value, unless evidence to the contrary, will transaction price - which is equal to the fair value of the consideration given plus transaction costs to them directly attributable.
Plan qualifies to be part of the initial assessment the amount of preferential subscription rights and the like which, if any, had been purchased. Regarding the
subsequent valuation, the financial assets available for sale be valued at fair value, without deducting transaction costs that might be incurred in disposal.
will have to ask two questions:
1. Has changed the fair value of the asset?
a. If the answer is negative at year-end will not do anything.
b. If the answer is yes (because the shares are traded and their value has changed, because the present value of expected cash flows from this investment and disposal differ from book value (book), the net asset value the company has changed reliably compared to what it was before) we must ask whether this change is unrecoverable (well to be a continued deterioration in value, or because it is considered that not recoverable book value - Case 1) or likely to change again - Case 2.
Case 1. In the first case we have a impairment, which will be reflected in the profit and loss account. Reversal of impairment will limit the carrying value of the investment that would be recognized at the date of reversion if he had not recorded an impairment.
Briefly:
Account 250. long-term financial investments in equity instruments payable on the amount of damage estimated to account under 696. There has 290 for impairment.
Case 2. In the second case, the changes that occur in fair value are recorded directly in the PN , until the financial asset is derecognised cause or deteriorate (Case 1) , time the amount so recognized shall be charged to the profit and loss account.
Briefly:
Account 250. long-term financial investments in equity instruments charge or pay for the changes in fair value, with credit or debit, respectively, 900 and 800 accounts. There has 290 for impairment.
On the other hand, the accumulated losses, recognized in the PN by decline in fair value, whenever there is objective evidence of impairment in asset value be recognized in the profit and loss account at the time.
If it is low:
Account 250. long-term financial investments in equity instruments payable on disposals and in general for its low of the asset under generally entitled to 57 sub accounts, if any outstanding payments to the account 259 or, if , at 549 and account for losses to the account 666. Therefore
has to distinguish between valuation adjustment for increase or decrease in fair value or valuation allowance for impairment.
The first was recorded in equity until the sale is made, and varies the amount of the asset's fair value.
The second will be recorded in the profit and loss account and can be reversed by crediting the same account, and vary the amount of the asset's fair value.
SMEs in the PGC:
This investment would qualify for valuation purposes as financial assets at cost , because according to the PGC of SMEs in this category are classified (...) and other equity instruments unless the latter be "held for trading instruments."
Investments in equity instruments included in this category are valued initially at cost, which amounts to fair value of the consideration paid plus transaction costs directly attributable to them ... be part of the initial assessment the amount of preferential subscription rights and the like which, if any, had been purchased.
So in this sense there would be no changes to the PGC Normal.
ATTENTION: Investments in equity instruments included in this category measured at cost less, where applicable, the cumulative amount of impairment losses, which are recorded in an account of Impaired Value (29).
At least at each financial year, shall be necessary valuation adjustments whenever there is objective evidence that the carrying value of an investment will not be recoverable. The impairment losses and, where appropriate, their reversal is recorded in P & G. The reversal of impairment will be limited to the carrying value of investment be recognized at the date of reversion if there had been recorded for impairment.
Briefly:
Their movement is as follows:
shall be payable for the estimated amount of impairment, with a charge to 696.
be charged:
1) When determining causes disappear recognition correction impaired, credited to the account 796.
2) When you dispose of the financial assets is derecognised or asset for any reason, with credit to sub-accounts 25.
So in this case only be made valuation adjustments impairment or reversal of this deterioration , imputing them to the profit and loss account.
If it is low (same as in the PGC Normal):
Account 250. Long-term investments in equity instruments be paid by the general dispositions and asset due to its low , fee, general mind, 57 sub accounts, if any outstanding payments to the account 259 or, where appropriate, to account 549 and in case of loss to account 666.
2. Group companies, joint ventures or associates:
The PGC Normal:
Its Initial Assessment be a cost which amounts to fair value of the consideration given plus transaction costs directly attributable to them.
be part of the initial assessment the amount of preferential subscription rights and the like which, if any, had been purchased.
However, if there is an investment prior to its classification as a company, jointly controlled entity or associate ( Securities held for trading or for sale ) is considered as the cost of the investment the book value should be immediately before that the company happens to have that qualification.
subsequently measured at cost less, where applicable, the cumulative amount of impairment losses (Here there are 293)
The valuation adjustments will whenever there is objective evidence that the carrying value of an investment is not recoverable . The amount of the valuation adjustment is the difference between book value and recoverable amount. Unless better evidence is taken into account the equity of the investee adjusted for the unrealized gains at the valuation date.
For previous valuation adjustments for increases in value:
The impairment losses were recorded from the investment account (240 or 530) against the NP starting to collect the valuation adjustments to the amount previously charged the same and the excess, if any, are recorded in the profit and loss account over the 293.
The reversal of impairment will be limited to the carrying value of investment be recognized at the date of reversion if there had been recorded for impairment.
For previous valuation adjustments and write-downs (which could only go to PN)
If the recoverable amount exceeds the book value of investments, the latter will be increased to the limit indicated reduction of value from the game that collected the previous valuation adjustments of the PN and from that moment the new amount raised will be considered investment costs. Accounts
2403/2404. long-term holdings in group companies / associated companies
a) charged:
a2) If, at the time that the recoverable value exceeds the book value of investments, to limit the previous negative valuation adjustments recognized directly in to PN, with credit to the accounts 991 or 992.
b) shall be paid:
b1) If, in the amount of damage estimated to The limit of the previous positive valuation adjustments recognized directly in to PN, accounts under 891 or 892.
From there we will use the account 293. Impairment of long-term interests in related parties payable for the estimated remaining amount of the impairment, to be charged to profit and loss account under account 696.
Impairment Accounts: The account 293 is charged:
b1) When the causes that ended the recognition of impairment losses, with credit to the account 796.
b2) When you dispose of the financial assets is derecognised or asset for any reason, with credit to sub-accounts 24. Accounts
CP
530. Shares short-term related parties
5303/5304 short-term holdings in group companies / associated companies
a) will be charged where appropriate at the time that the recoverable amount is higher than the accounting for investments, to limit the negative valuation adjustments prior charged directly to equity, credited to the accounts 991 or 992.
b) shall be payable if, for the amount of damage estimated to The limit of the previous positive valuation adjustments charged directly equity accounts under 891 or 892.
If it is low
When you need to assign values \u200b\u200bto these assets off the balance sheet or otherwise, apply the weighted average cost method for homogeneous groups, defined as having equal values rights.
In the case of sale of preemptive rights and the like or segregation of these for the exercise, the amount of the cost of allowances will reduce the book value of related assets. This charge a formula determined by applying generally accepted valuation.
divestitures and generally by low asset shall be charged generally with 57 sub accounts, if any outstanding payments to the account or possibly 249, 539 and to account for losses to account 673 or 666.
The Plan of SMEs
Investments in group companies, joint ventures or affiliates shall be classified for valuation purposes as Financial assets at cost.
Investments in equity instruments included in this category are subsequently measured at cost less, where applicable, the cumulative amount of impairment losses. (Here's account 293)
The necessary valuation adjustments will be made whenever there is objective evidence that the carrying value of an investment will not be recoverable.
The amount of the valuation adjustment is the difference between book value and recoverable amount, but better evidence is taken into account the equity of the investee corrected by the unrealized gains on the date of valuation.
The impairment losses and, where appropriate, their reversal be recorded as the account of P and G . The reversal of impairment will be limited to the carrying value of investment be recognized at the date of reversion if there had been recorded for impairment.
293. Impairment of long-term interests related parties
movement cited accounts of four figures is as follows:
a) shall be payable in the amount of damage estimated to account under 696.
b) charged:
b1) When the causes that ended the recognition of impairment losses, with credit to the account 796.
b2) When you dispose of the financial assets is derecognised or asset for any reason, with credit to sub-accounts 24.
Short term:
593. deteriorating value of shares in the short term related parties
Movement cited accounts of four figures is as follows:
a) shall be payable in the amount of damage estimated to account under 698.
b) charged:
b1) When the causes that ended the recognition of impairment losses, with credit to the account 798.
b2) When disposing of the securities or assets disenrolled for any reason, with credit to sub-accounts 53.
In the case of low
When you need to assign values \u200b\u200bto these assets off the balance sheet or otherwise, apply the weighted average cost method for homogeneous groups they understood the values \u200b\u200bthat have equal rights.
In the case of sale of preemptive rights and the like or segregation of these for the exercise, the amount of the cost of allowances will reduce the book value of related assets. Such costs shall be determined by applying a formula generally accepted valuation.
Accounts: 2403/2404/2405
b) paid for the disposal and in general for its low of the asset under generally entitled to 57 sub accounts, if any outstanding payments to the account 249 or, case, 539 and account for losses to the account 673.
530. Holdings short-term related parties
5303/5304 short-term holdings in group companies / associated companies
b) shall be payable by the disposals and in general for its low of the asset under generally sub-group to accounts 57, if there are pending payments to the account 539 and in case of loss to account 666.
3. Portfolio of short-term
In the case of using the PGC Normal:
The financial assets held for trading be valued initially at fair value, unless evidence Otherwise, it will the price of the transaction, which is equal to the fair value of the consideration given. Note: Transaction costs directly attributable to them will be recognized in P & G account for the year.
case of equity instruments will be part of the initial assessment the amount of preferential subscription rights and the like which, if any, had been purchased.
changes occurring in the fair value is charged to the account of P and G for the year.
shall appear on the balance of current assets,
Briefly:
Account 540. Short-term investments in equity instruments
be charged for changes in fair value credited to the account 763.
shall be payable for changes in fair value charged to account 663.
If alienation:
For disposals and in general for the asset, from, generally, 57 and sub-accounts if there are outstanding payments to the account 549.
There is no impairment account.
. In the event that these values \u200b\u200bare the accounts of related companies are:
5305 Short-term Investments in other related parties
be charged for changes in fair value credited to the account 763.
shall be payable for changes in fair value charged to account 663.
If alienation:
For disposals and in general for its low of the asset under generally at 57 and sub-accounts if there are outstanding payments to the account 539.
The Plan of SMEs
respect to assets held for trading are no changes to the PGC Normal.
Briefly:
Account 540. Short-term investments in equity instruments
be charged for changes in fair value credited to the account 763.
shall be payable for changes in fair value charged to account 663.
sale If
For disposals and in general for the asset, from, generally, 57 and sub-accounts if there are outstanding payments to the account 549.
. In the case of being a short-term portfolio of related companies:
5305. Holdings short-term related parties
be charged for changes in fair value credited to the account 763.
shall be payable for changes in fair value charged to account 663.
sale If
For disposals and in general for its low of the asset under generally at 57 and sub-accounts if there are outstanding payments to the account 539.
So in this case the two plans are identical.
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