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ABC Co. is contemplating on investing on 12%, 3-year p1,000,000 bonds. Pricipal is due at maturity date but interest is due annually at each year-end. Market rate on January 1, 20x1 is 10%. Information regarding the fair values follows: December 31, 20x2….104 December 31, 20x3….105 Please provide entries on reclassification date under the ff scenarios:( changes in business model in 20x2) a. Amortised cost to FVPL b. PVPL to Amortised cost c. Amortised cost to FVOCI-mandatory Required : Prepare journal entries

ABC Co. is contemplating on investing on 12%, 3-year p1,000,000 bonds. Pricipal is due at maturity date but interest is due annually at each year-end. Market rate on January 1, 20x1 is 10%. Information regarding the fair values follows: December 31, 20x2….104 December 31, 20x3….105 Please provide entries on reclassification date under the ff scenarios:( changes in business model in 20x2) a. Amortised cost to FVPL b. PVPL to Amortised cost c. Amortised cost to FVOCI-mandatory Required : Prepare journal entries

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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ABC Co. is contemplating on investing on 12%, 3-year p1,000,000 bonds. Pricipal is due at maturity date but interest is due annually at each year-end. Market rate on January 1, 20x1 is 10%. Information regarding the fair values follows: December 31, 20x2….104 December 31, 20x3….105 Please provide entries on reclassification date under the ff scenarios:( changes in business model in 20x2)

a. Amortised cost to FVPL

b. PVPL to Amortised cost

c. Amortised cost to FVOCI-mandatory

Required : Prepare journal entries

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