Final Answer
The net amount credited to Diamond Corp's P&L or OCI in year 2 under IFRS would be $55,000.
Step-by-step explanation
Under the Fair Value through Profit or Loss (FVTPL) classification in IFRS, changes in fair value impact the Profit & Loss (P&L) or Other Comprehensive Income (OCI). In this scenario, the initial fair value of the shares at the end of year 1 was $100,000, and by the end of year 2, it increased to $155,000. The difference between these fair values ($155,000 - $100,000) amounts to $55,000.
The increase in fair value of the shares by $55,000 would result in a credit entry in the P&L or OCI, depending on the company's accounting policy. This means Diamond Corp would recognize a gain of $55,000 in either the P&L or OCI for year 2.
In essence, this gain represents the net amount credited to Diamond Corp's financial statement. This credit reflects the positive impact on the company's financial position due to the appreciation in the fair value of its investment in ABC Inc. The clear disclosure of such gains or losses is crucial in financial reporting, allowing stakeholders to understand the performance and value fluctuations of the company's investments over time.