You are auditing the financial statements of DISUKO Corporation and obtained the following information. DISUKO acquired an investment for 1,000,000. Transaction costs amount to P10,000. At year-end, the investment has a fair value of P900,000. 1. If the investment is classified as financial asset at fair value through profit or loss, how much would it be recorded upon acquisition? 2. If the investment is classified as financial asset at fair value through profit or loss, what is the amount of unrealized gain or loss to be reported in the statement of comprehensive income? 3. If the investment is classified as financial asset at fair value through other comprehensive income, how much would it be recorded upon acquisition? 4. If the investment is classified as as financial asset at fair value through other comprehensive income, what is the amount of unrealized gain or loss to be reported in the income statement? 5. If the financial asset is classified as financial asset at amortized cost, how much would it be recorded upon acquisition? 6. If the investment is classified as financial asset at amortized cost, what is the amount of unrealized gain or loss to be reported in the income statement?

You are auditing the financial statements of DISUKO Corporation and obtained the following information. DISUKO acquired an investment for 1,000,000. Transaction costs amount to P10,000. At year-end, the investment has a fair value of P900,000. 1. If the investment is classified as financial asset at fair value through profit or loss, how much would it be recorded upon acquisition? 2. If the investment is classified as financial asset at fair value through profit or loss, what is the amount of unrealized gain or loss to be reported in the statement of comprehensive income? 3. If the investment is classified as financial asset at fair value through other comprehensive income, how much would it be recorded upon acquisition? 4. If the investment is classified as as financial asset at fair value through other comprehensive income, what is the amount of unrealized gain or loss to be reported in the income statement? 5. If the financial asset is classified as financial asset at amortized cost, how much would it be recorded upon acquisition? 6. If the investment is classified as financial asset at amortized cost, what is the amount of unrealized gain or loss to be reported in the income statement?

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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