RCSB bought on 1 June 2017 shares of Company A. The shares were only 1% of total shares issued. Total amount paid for the shares were RM100,000. At the end of the year 2017, the shares increased in value to RM120,000. RCSB intend to sell the shares within 12 months from purchased. Based on the above, discuss on how you would account for the following items by reference to the appropriates approved accounting standards. Support your arguments with reasons. The investment in Company A. Based on the relevant approved accounting standards that you have chosen in (b), journalize each of the transactions
RCSB bought on 1 June 2017 shares of Company A. The shares were only 1% of total shares issued. Total amount paid for the shares were RM100,000. At the end of the year 2017, the shares increased in value to RM120,000. RCSB intend to sell the shares within 12 months from purchased. Based on the above, discuss on how you would account for the following items by reference to the appropriates approved accounting standards. Support your arguments with reasons. The investment in Company A. Based on the relevant approved accounting standards that you have chosen in (b), journalize each of the transactions
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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RCSB bought on 1 June 2017 shares of Company A. The shares were only 1% of total shares issued. Total amount paid for the shares were RM100,000. At the end of the year 2017, the shares increased in value to RM120,000. RCSB intend to sell the shares within 12 months from purchased.
Based on the above, discuss on how you would account for the following items by reference to the appropriates approved accounting standards. Support your arguments with reasons. The investment in Company A.
Based on the relevant approved accounting standards that you have chosen in (b), journalize each of the transactions
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