What is the proper accounting treatment for Stock dividend obtained from a non quoted Privet limited company?

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:

• The equity investment will increase by the Net profit declared by the Company up to the percentage of your holding only.
• Reduce the investment by the amount received as stock dividend.