Current Investments: An investment which is held for short term, less than a year is classified into current investment section.
Non-Current Investments: An investment which is held for more than a year is classified into non-current investment section.
Fair value: Fair value is a selling price which is agreed by the buyer and seller. It is also the estimate of the potential market price of good, service or asset.
Derivatives: Derivatives are the product whose value is derived from an underlying asset. The shares, bonds, commodities, interest rates, index are the underlying assets.
(a) To determine: To determine the type of investments of M Company in 2015, and reporting of these investments in financial statements.
Given information: All the information related to M Company is provided in the question document.
(b) To determine: To determine M’s investment valuation and its fair value.
Given information: All the information related to M Company is provided in the question document.
(c) To determine: To determine the use of derivative financial instrument.
Given information: All the information related to M Company is provided in the question document.
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Chapter 17 Solutions
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