INVESTMENT IN EQUITY SECURITIES

• Equity securities


  Represent equity interest, represented by certificates of share capital or potential share capital, in other corporate entities
• Reasons for purchasing share capital of other companies

  • As temporary placements of excess cash and held primarily for sale in the near term to generate income on short-term price fluctuations
  • To obtain long-term customer or supplier or creditor relationship to secure certain operating or financing arrangements with these companies
  • To exercise significant influence or control over the operating policies of another entity
• Classification of equity securities

  • Equity investments at fair value through profit or loss (FVPL)
  • Equity investments at fair value through other comprehensive income (OCI)
  • Investment in associate or investment in joint venture
  • Investment in subsidiaries
• Trading equity securities


  Designated as at fair value through profit or loss
• Non-trading equity securities


  Investor makes an irrevocable choice at the date of initial recognition (upon purchase) whether to measure the equity investments at fair value through other comprehensive income or at fair value through profit or loss