The management of Que-B Bhd is targeting toaccumulate funds to finance its projects. Thestrategy is to keep several portfolios with thespecific intention to obtain the gains if thevalue of the investment appreciates in thefuture. Security portfolios I and Il are held atthe end of Que-B Bhd's first year of operationsand are shown in the following table:Year-EndSecurityCostMarketValueRM36,000 RM39,000||RM17,000RM20,000d) As soon as adjusting the securities' values totheir corresponding market values, Que-B Bhdelects to reclassify Security I as an FVTOCIsecurity. On the date of the transfer, security l'smarket value is RM19,000.i. Explain how this should be accounted for byQue-B Bhd.ii. Show the relevant journal entries.

Available for sale securities refer to those financial instruments which are available to the sold…

The management of Que-B Bhd is targeting to accumulate funds to finance its projects. The strategy is to keep several portfolios with the specific intention to obtain the gains if the value of the investment appreciates in the future. Security portfolios I and Il are held at the end of Que-B Bhd's first year of operations and are shown in the following table: Cost Market Value Year-End Security RM36,000 RM39,000 RM17,000 RM20,000 d) As soon as adjusting the securities' values to their corresponding market values, Que-B Bhd elects to reclassify Security I as an FVTOCI security. On the date of the transfer, security l's market value is RM19,000. i. Explain how this should be accounted for by Que-B Bhd. ii. Show the relevant journal entries.

The management of Que-B Bhd is targeting to accumulate funds to finance its projects. The strategy is to keep several portfolios with the specific intention to obtain the gains if the value of the investment appreciates in the future. Security portfolios I and Il are held at the end of Que-B Bhd's first year of operations and are shown in the following table: Cost Market Value Year-End Security RM36,000 RM39,000 RM17,000 RM20,000 d) As soon as adjusting the securities' values to their corresponding market values, Que-B Bhd elects to reclassify Security I as an FVTOCI security. On the date of the transfer, security l's market value is RM19,000. i. Explain how this should be accounted for by Que-B Bhd. ii. Show the relevant journal entries.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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