How much is the unrealized gain (loss) recognized in other comprehensiveincome on December 31, 20x1?Karen Co. purchased the following equity securities on January 1, 20x1 for a total amount ofP360,000.CostAlaska Co. preference sharesP200,000160,000Valdez Co. ordinary sharesTotalsP360,000The shares did not qualify for recognition as held for trading, thus they were classified asinvestment in equity securities measured at fair value through other comprehensive income.On December 31, 20x1, the portfolio of Karen Co. comprised the following.Fair value - 12/31/x1Alaska Co. preference sharesP240,00060,000Valdez Co. ordinary sharesTotalP300,000On December 31, 20x2, the portfolio of Karen Co. comprised the following:Fair value-12/31/x2Alaska Co. preference sharesP220,000Valdez Co. ordinary shares180,000TotalP400,000On February 2, 20x3, all of the Alaska Co. preference shares were sold for P160,000 net of transactioncosts.60,000100,000O (60,000)

As per IFRS If investment in equity shares other than those held for trading is measured at Fair…

ncome on December 31, 20x1? Karen Co. purchased the following equity securities on January 1, 2 P360,000. Cost P200,000 Alaska Co. preference shares Valdez Co. ordinary shares Totals 160,000 P360,000 The shares did not qualify for recognition as held for trading, thu investment in equity securities measured at fair value through other comp

ncome on December 31, 20x1? Karen Co. purchased the following equity securities on January 1, 2 P360,000. Cost P200,000 Alaska Co. preference shares Valdez Co. ordinary shares Totals 160,000 P360,000 The shares did not qualify for recognition as held for trading, thu investment in equity securities measured at fair value through other comp

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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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

100%

How much is the unrealized gain (loss) recognized in other comprehensive
income on December 31, 20x1?
Karen Co. purchased the following equity securities on January 1, 20x1 for a total amount of
P360,000.
Cost
Alaska Co. preference shares
P200,000
160,000
Valdez Co. ordinary shares
Totals
P360,000
The shares did not qualify for recognition as held for trading, thus they were classified as
investment in equity securities measured at fair value through other comprehensive income.
On December 31, 20x1, the portfolio of Karen Co. comprised the following.
Fair value - 12/31/x1
Alaska Co. preference shares
P240,000
60,000
Valdez Co. ordinary shares
Total
P300,000
On December 31, 20x2, the portfolio of Karen Co. comprised the following:
Fair value-12/31/x2
Alaska Co. preference shares
P220,000
Valdez Co. ordinary shares
180,000
Total
P400,000
On February 2, 20x3, all of the Alaska Co. preference shares were sold for P160,000 net of transaction
costs.
60,000
100,000
O (60,000)

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