he activities are a substantive part of bank a s business and management monitors th 611773

Entity with a venture capital organisation segment Bank A has a number of separate activities. One segment”s business is to acquire all the shares of companies which are then partially sold down to third-party investors. Bank A retains a portion of the shares as a co-investor and has significant influence, but not control, until the investment is exited. Bank A considers these activities to be in the nature of venture capital (providing capital to a start up business or one which needs reorganising to optimise the full potential, which is at risk). The activities are a substantive part of Bank A”s business and management monitors the activities of the segment on the basis of the fair value of the investments. Even though Bank A is itself not a venture capital organisation, it would be able to apply the exemption and account for its investments at fair value under IFRS 9 (or IAS 39), with changes in fair value recognised in profit or loss in the period of change.