Pedantic Co. purchased 20,000 shares on 1 July 20x0, making the election to use the alternative treatment under FVTOCI – IFRS 9. Given that each share costs $3.50. Transaction costs of the purchase were $400. At 31 December 20x0, the shares are trading at $5.0 each. a. What is the carrying balance of this financial asset shown on statement of financial position as at 31 December 20X0? b. What is the gain to be recognised on these shares for the year ended 31 December 20X0? Where to record this gain in statement of profit or loss and other comprehensive? c. Assume that these shares were held for sales, what is the initial measurement of this financial asset at 01 July 20x0? What should Pedantic Co record in statement of profit or loss and other comprehensive income at the year ended 20X0
Pedantic Co. purchased 20,000 shares on 1 July 20x0, making the election to use the alternative treatment under FVTOCI – IFRS 9. Given that each share costs $3.50. Transaction costs of the purchase were $400. At 31 December 20x0, the shares are trading at $5.0 each. a. What is the carrying balance of this financial asset shown on statement of financial position as at 31 December 20X0? b. What is the gain to be recognised on these shares for the year ended 31 December 20X0? Where to record this gain in statement of profit or loss and other comprehensive? c. Assume that these shares were held for sales, what is the initial measurement of this financial asset at 01 July 20x0? What should Pedantic Co record in statement of profit or loss and other comprehensive income at the year ended 20X0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Pedantic Co. purchased 20,000 shares on 1 July 20x0, making the election to use the
alternative treatment under FVTOCI – IFRS 9. Given that each share costs $3.50. Transaction
costs of the purchase were $400.
At 31 December 20x0, the shares are trading at $5.0 each.
a. What is the carrying balance of this financial asset shown on statement of financial position
as at 31 December 20X0?
b. What is the gain to be recognised on these shares for the year ended 31 December 20X0?
Where to record this gain in statement of profit or loss and other comprehensive?
c. Assume that these shares were held for sales, what is the initial measurement of this
financial asset at 01 July 20x0? What should Pedantic Co record in statement of profit or
loss and other comprehensive income at the year ended 20X0?
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