compute for the total amount of items that meet the definition of financial asse
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Debenture Valuation
A debenture is a private and long-term debt instrument issued by financial, non-financial institutions, governments, or corporations. A debenture is classified as a type of bond, where the instrument carries a fixed rate of interest, commonly known as the ‘coupon rate.’ Debentures are documented in an indenture, clearly specifying the type of debenture, the rate and method of interest computation, and maturity date.
Note Valuation
It is the process to determine the value or worth of an asset, liability, debt of the company. It can be determined by many processes or techniques. Many factors can impact the valuation of an asset, liability, or the company, like:
Question
Using the data given below, compute for the total amount of items that meet the definition of financial asset
Cash
P 100,000
Investment in shares – FVTPL
500,000
Investment in associate
2,000,000
Accounts receivable
1,000,000
Inventories
800,000
Prepaid rent
50,000
Interest rate swap receivable
200,000
Investment in debt securities – FVTOCI
400,000
Investment in debt securities – AC
300,000
Land
2,000,000
Buildings
3,000,000
Machinery and equipment
1,500,000
Patents
250,000
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