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The shareholder (beneficiary of the stock dividend) is a Quoted public Limited company. Does there any difference in accounting treatment for subsidiary, associate or investment entity ? If possible please provided IAS/IFRS reference.
The equity share investment in any company either private or public will be dealt by IFRS9 - Financial Instruments (formerly IAS39). All Financial instruments will be recorded initially at fair value. The subsequent treatment will be decided based on the nature of Financial Instruments.
In your case the equity investments in a private company will come under the scope of IFRS9 and will be measured at fair value in the statement of financial position, with value changes recognised in profit or loss. There is no separate treatment for unquoted equities.
Accounting Treatment:
