1 October 2020, OXIOM purchased 200,000 equity share in Eban, a key supplier. Eban’s shares are listed on the Ghana Stock Exchange (GSE). This share purchase did not five OXIOM control or significant influence over Eban but OXIOM intends to retain the shares in Eban as a long-term strategic investment and has elected irrevocable to measure and recognize gains and losses through other comprehensive income OXIOM paid GH₵2.40 per share for these shares being their fair value at the date of purchase. Additionally, brokers charge a fee of 2% of the amounts paid to buy the shares. On 31 March 2021, Eban paid a dividend of 25 pesewas per share On 30 September 2021, information received fro
1 October 2020, OXIOM purchased 200,000 equity share in Eban, a key supplier. Eban’s shares are listed on the Ghana Stock Exchange (GSE). This share purchase did not five OXIOM control or significant influence over Eban but OXIOM intends to retain the shares in Eban as a long-term strategic investment and has elected irrevocable to measure and recognize gains and losses through other comprehensive income OXIOM paid GH₵2.40 per share for these shares being their fair value at the date of purchase. Additionally, brokers charge a fee of 2% of the amounts paid to buy the shares. On 31 March 2021, Eban paid a dividend of 25 pesewas per share On 30 September 2021, information received fro
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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- On 1 October 2020, OXIOM purchased 200,000 equity share in Eban, a key supplier. Eban’s shares are listed on the Ghana Stock Exchange (GSE). This share purchase did not five OXIOM control or significant influence over Eban but OXIOM intends to retain the shares in Eban as a long-term strategic investment and has elected irrevocable to measure and recognize gains and losses through other comprehensive income OXIOM paid GH₵2.40 per share for these shares being their fair value at the date of purchase. Additionally, brokers charge a fee of 2% of the amounts paid to buy the shares. On 31 March 2021, Eban paid a dividend of 25 pesewas per share
On 30 September 2021, information received from GSE regarding Eban’s share price indicates the fair value of the share at GH₵2.90
Required. Explain with calculations how OXIOM should account for the transactions for the year to 30 September, 2021.
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