On January 1, 2015, Jessica Company acquired a nontrading equity investment for P5,000,000 irrevocably designated at FVOCI. On December 31, 2015, the market value of the investment was P4,000,000. On December 31, 2016, the issuer of the equity instrument was in severe financial difficulty and the fair value of the equity investment had fallen to P1,500,000. The decline is judged to be nontemporary. What amount of cumulative loss should be reported in the statement of changes in equity for 2016 as component of OCI?

On January 1, 2015, Jessica Company acquired a nontrading equity investment for P5,000,000 irrevocably designated at FVOCI. On December 31, 2015, the market value of the investment was P4,000,000. On December 31, 2016, the issuer of the equity instrument was in severe financial difficulty and the fair value of the equity investment had fallen to P1,500,000. The decline is judged to be nontemporary. What amount of cumulative loss should be reported in the statement of changes in equity for 2016 as component of OCI?

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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