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MN ltd's draft statement of financial position as at 31 March 2015 shows financial assets at fair value through profit or loss with a carrying amount of GHS12.5m as at 1 April 2014. These financial assets are held in a fund whose value changes directly in proportion to a specified market index. At 1 April 2014 the relevant index was 1,200 and at 31 March 2015 it was 1,296. What amount of gain or loss should be recognised at 31 March 2015 in respect of these assets? A. GHS1,000,000 gain B. GHS96,000 gain C. GHS1,000,000 loss D. GHS96,000 loss

MN ltd's draft statement of financial position as at 31 March 2015 shows financial assets at fair value through profit or loss with a carrying amount of GHS12.5m as at 1 April 2014. These financial assets are held in a fund whose value changes directly in proportion to a specified market index. At 1 April 2014 the relevant index was 1,200 and at 31 March 2015 it was 1,296. What amount of gain or loss should be recognised at 31 March 2015 in respect of these assets? A. GHS1,000,000 gain B. GHS96,000 gain C. GHS1,000,000 loss D. GHS96,000 loss

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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MN ltd's draft statement of financial position as at 31 March 2015 shows financial assets at fair value through profit or loss with a carrying amount of GHS12.5m as at 1 April 2014. These financial assets are held in a fund whose value changes directly in proportion to a specified market index. At 1 April 2014 the relevant index was 1,200 and at 31 March 2015 it was 1,296. What amount of gain or loss should be recognised at 31 March 2015 in respect of these assets?

  • A. GHS1,000,000 gain
  • B. GHS96,000 gain
  • C. GHS1,000,000 loss
  • D. GHS96,000 loss
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