only result from impairments, when the market price of gold decreases below the acquisition price. Losses due to impairment are recognized in the statement of financial performance, with a corresponding decrease in the carrying amount of the monetary gold assets on the statement of financial position. 4.43 Historical cost reflects the cost to acquire the gold assets and the No comment. minimum service potential provided by holding it. Monetary authorities with the intention of holding monetary gold because of its service potential, are often more concerned with the quantity of gold held. Therefore, changes in the historical cost values on the statement of financial position directly relate to either increases or decreases in the quantity of monetary gold assets, or impairments of monetary gold assets. The historical cost approach also addresses the issue of ensuring the unrealized gains and losses are not distributed as dividends by monetary authorities. Consistency with Current IPSASs Approach 1: Market value in an open, active and orderly marke 4.44 Guidance on accounting for financial assets in IPSAS 29 is based No comment. on the classification of the financial instrument, with different
only result from impairments, when the market price of gold decreases below the acquisition price. Losses due to impairment are recognized in the statement of financial performance, with a corresponding decrease in the carrying amount of the monetary gold assets on the statement of financial position. 4.43 Historical cost reflects the cost to acquire the gold assets and the minimum service potential provided by holding it. Monetary authorities with the intention of holding monetary gold because of its service potential, are often more concerned with the quantity of gold held. Therefore, changes in the historical cost values on the statement of financial position directly relate to either increases or decreases in the quantity of monetary gold assets, or impairments of monetary gold assets. The historical cost approach also addresses the issue of ensuring the unrealized gains and losses are not distributed as dividends by monetary authorities. No comment. Consistency with Current IPSASs Approach 1: Market value in an open, active and orderly marke 4.44 Guidance on accounting for financial assets in IPSAS 29 is based on the classification of the financial instrument, with different No comment.