On 1 January 2020, an entity purchased a debt instrument at its face value of P1,000,000. The contractual term is ten years with an annual coupon of 6%. On 31 December 2020, the fair value of the instrument decreases to P955,000. 12- month expected credit losses as determined under the impairment model are P25,000. The amount to be recognized in P/L assuming the investment is classified as FVTOCI is?
On 1 January 2020, an entity purchased a debt instrument at its face value of P1,000,000. The contractual term is ten years with an annual coupon of 6%. On 31 December 2020, the fair value of the instrument decreases to P955,000. 12- month expected credit losses as determined under the impairment model are P25,000. The amount to be recognized in P/L assuming the investment is classified as FVTOCI is?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Manshukh
![On 1 January 2020, an entity purchased a debt instrument at its face value of P1,000,000. The contractual term is ten years
with an annual coupon of 6%. On 31 December 2020, the fair value of the instrument decreases to P955,000. 12- month
expected credit losses as determined under the impairment model are P25,000. The amount to be recognized in P/L
assuming the investment is classified as FVTOCI is?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F42124771-ed93-47ce-9d86-b8fe3e06ea73%2F11733633-5c81-441c-a083-f9ffaa754b6f%2Fmbflrgq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On 1 January 2020, an entity purchased a debt instrument at its face value of P1,000,000. The contractual term is ten years
with an annual coupon of 6%. On 31 December 2020, the fair value of the instrument decreases to P955,000. 12- month
expected credit losses as determined under the impairment model are P25,000. The amount to be recognized in P/L
assuming the investment is classified as FVTOCI is?
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