On January 1, 20x1, ABC Company acquired 12% , P1,000,000 bonds. The principal is due on December 31, 20x3 but interest is due annually starting December 31, 20x1. The effective interest rate is 10%. The bonds were initially measured at FVOCI and are to be reclassified to the amortised cost category. Information on fair values as follows: December 31, 20x1 -103 January 1, 20x2(reclassification date) - 104 a. How much is the adjustment for the fair value change on reclassification date? b. How is the cumulative balance of gain-OCI/Equity? c. What is the carrying amount of the investment on reclassification date (upon reclassification to amortised cost)?
On January 1, 20x1, ABC Company acquired 12% , P1,000,000 bonds. The principal is due on December 31, 20x3 but interest is due annually starting December 31, 20x1. The effective interest rate is 10%.
The bonds were initially measured at FVOCI and are to be reclassified to the amortised cost category.
Information on fair values as follows:
December 31, 20x1 -103
January 1, 20x2(reclassification date) - 104
a. How much is the adjustment for the fair value change on reclassification date?
b. How is the cumulative balance of gain-OCI/Equity?
c. What is the carrying amount of the investment on reclassification date (upon reclassification to amortised cost)?
d. What is the
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