Problem 15-9 (IFRS) Judicious Company acquired an equity investment a number of yèars ago for P3,000,000 and classified it as at fair value through other comprehensive income. On December 31, 2019, the cumulative loss recognized in other comprehensive income was P400,000 and the carrying amount of the investment was P2,600,000. On December 31, 2020, the issuer of the equity instrument was in severe financial difficulty and the fair value of the equity investment had fallen to P1,200,000. What cumulative amount of unrealized loss should be reported as component of other comprehensive income in the statement of changes in equity for the year ended December 31, 2020? 1,400,000 1,800,000 1,000,000

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Problem 15-9 (IFRS)
Judicious Company acquired an equity investment a number
of yèars ago for P3,000,000 and classified it as at fair value
through other comprehensive income.
On December 31, 2019, the cumulative loss recognized in other
comprehensive income was P400,000 and the carrying amount
of the investment was P2,600,000.
On December 31, 2020, the issuer of the equity instrument was
in severe financial difficulty and the fair value of the equity
investment had fallen to P1,200,000.
What cumulative amount of unrealized lose should be reported
as component of other comprehensive income in the statement
of changes in equity for the year ended December 31, 2020?
1,400,000
1,800,000
1,000,000
Transcribed Image Text:Problem 15-9 (IFRS) Judicious Company acquired an equity investment a number of yèars ago for P3,000,000 and classified it as at fair value through other comprehensive income. On December 31, 2019, the cumulative loss recognized in other comprehensive income was P400,000 and the carrying amount of the investment was P2,600,000. On December 31, 2020, the issuer of the equity instrument was in severe financial difficulty and the fair value of the equity investment had fallen to P1,200,000. What cumulative amount of unrealized lose should be reported as component of other comprehensive income in the statement of changes in equity for the year ended December 31, 2020? 1,400,000 1,800,000 1,000,000
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