Question 1 (a) HHT Bhd has a portfolio of diversified investments. In 2020, the company made investments in two financial assets:On 1 January 2020, HHT Bhd acquired 1,000,000 shares of MSG Bhd for RM0.55 per share and incurred a transactioncost of RM10,000. The shares were classified as fair-value-through profit and loss (FVTPL). At the financial year-end of31 December 2020, the market value of the investment increased to RM600,000. On 1 January 2021, HHÍT Bhd soldthe investment for RM625,000.1.On 1 July 2020, HHT Bhd acquired another 1,000,000 shares for its second investment from MSG Bhd for RM0.775per share. HHT Bhd has made an irrevocable election and incurred RM12,000 for the brokerage fees. At the end of thefinancial year-end 31 December 2020, the market value of the investment increased to RM790,000. On 1 January2021, the investment was also sold for RM915.000.2.Required:а.Determine the classification of the financial assets above as stipulated in MFRS 9 Financial Instruments.

Classification of Financial Assets stipulated in MFRS 9 Classification of the financial assets…

HHT Bhd has a portfolio of diversified investments. In 2020, the company made investments in two financial assets: On 1 January 2020, HHT Bhd acquired 1,000,000 shares of MSG Bhd for RM0.55 per share and incurred a transaction cost of RM10,000. The shares were classified as fair-value-through profit and loss (FVTPL). At the financial year-end of 31 December 2020, the market value of the investment increased to RM600,000. On 1 January 2021, HHT Bhd sold the investment for RM625,000. 1. 2. On 1 July 2020, HHT Bhd acquired another 1,000,000 shares for its second investment from MSG Bhd for RMO.775 per share. HHT Bhd has made an irrevocable election and incurred RM12,000 for the brokerage fees. At the end of the financial year-end 31 December 2020, the market value of the investment increased to RM790,000. On 1 January 2021, the investment was also sold for RM915.000. Required: a. Determine the classification of the financial assets above as stipulated in MFRS 9 Financial Instruments.

HHT Bhd has a portfolio of diversified investments. In 2020, the company made investments in two financial assets: On 1 January 2020, HHT Bhd acquired 1,000,000 shares of MSG Bhd for RM0.55 per share and incurred a transaction cost of RM10,000. The shares were classified as fair-value-through profit and loss (FVTPL). At the financial year-end of 31 December 2020, the market value of the investment increased to RM600,000. On 1 January 2021, HHT Bhd sold the investment for RM625,000. 1. 2. On 1 July 2020, HHT Bhd acquired another 1,000,000 shares for its second investment from MSG Bhd for RMO.775 per share. HHT Bhd has made an irrevocable election and incurred RM12,000 for the brokerage fees. At the end of the financial year-end 31 December 2020, the market value of the investment increased to RM790,000. On 1 January 2021, the investment was also sold for RM915.000. Required: a. Determine the classification of the financial assets above as stipulated in MFRS 9 Financial Instruments.

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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