PROBLEM ABC Co. changes its business model and determines the following information: Carrying amount of financial asset under previous classification 300,000 Fair value on reclassification date (January 1, 20x3) 360,000 Requirements: Provide the entry (entries) on reclassification date under the following scenarios: Amortized cost to FVPL FVPL to Amortized cost Amortized cost to TVOCI (mandatory) FVOCI (mandatory) to Amortized cost - the cumulative balance of gain previously recognized in equity amounts to P15,000. FVPL to FVOCI (mandatory)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Reclassification Entries

 

PROBLEM 

 

ABC Co. changes its business model and determines the following information: 

  • Carrying amount of financial asset under previous classification 300,000
  • Fair value on reclassification date (January 1, 20x3) 360,000

 

Requirements: Provide the entry (entries) on reclassification date under the following scenarios:

  1. Amortized cost to FVPL
  2. FVPL to Amortized cost
  3. Amortized cost to TVOCI (mandatory)
  4. FVOCI (mandatory) to Amortized cost -  the cumulative balance of gain previously recognized in equity amounts to P15,000.
  5. FVPL to FVOCI (mandatory)
  6. FVOCI (mandatory) to FVPL - the cumulative balance of gain previously recognized in equity amounts to P15,000.
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