what gain would be recognized in the financial statements for the year ended 31 December 2020?
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A: When an entity purchases or acquires another entity then after this acquisition, a new…
Q: An entity acquired an investment in equity instrument for P800,000 on 31 March 2020. The direct…
A: Cost of equity instrument = P800,000 + P140,000 = P940,000 Fair value = P1,100,000
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A:
Q: EE Inc. purchased an equipment on March 31, 2019. The selling price of the asset is equal to its…
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A: 1.Unrealized profit or losses refer to profits or losses that have not occurred in actual but has…
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A:
Q: On January 1, 2019, Blackpink Company purchased nontrading equity securities. On December 31, 2019,…
A: Since you have asked two different questions under a single question, kindly resubmit another…
Q: Difficult Company acquiredan equity instrument for P3,600,000 on March 31, 2020 to be measured at…
A: Given that: Acquisition costs = P3,600,000 Direct costs incurred = P630,000 At the end, Fair value…
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A: The calculation of purchase consideration is as follows: Purchase Consideration=Cash Payment+Fair…
Q: 4. An entity acquired an investment in equity instrument for P800,000 on 31 March 2020. The direct…
A: When fair value of the instruments is more the acquisition cost, then gain on the values of…
Q: On January 1, 2021, Jeremiah Company purchased trading equity investments which are irrevocably…
A: Unrealized profit or losses refer to profits or losses that have not occurred in actual but has…
Q: An entity acquired an investment in equity instrument for P800,000 on 31 March 2020. The direct…
A: Acquisition cost on Mar 31,2020 = Purchase price + direct acquisition costs = 800,000 + 140,000 =…
Q: On July 1, 2019, Parent Company acquired the net assets of Subsidiary Company for a consideration…
A: Answer:- When an entity purchases or acquires another entity then after this acquisition, a new…
Q: During 2021, Manu Company purchased shares of stock classified as short-term investment to be…
A: Unrealized gain or loss is the increase or decrease in the value of an asset that is still to be…
Q: On December 31, 2020, Luffy Company's investment in subsidiary account showed a balance of P400,000.…
A: Revaluation is a permissible method under IFRS in which the assets of a company are recorded at…
Q: An entity acquired an investment in equity instrument for P800,000 on 31 March 2020. The direct…
A: Unrealized Gain: It is a potential gain which is earned from the investment when the company earns…
Q: During 2020, Strawberry Corporation purchased several equity securities, all of which are designated…
A: Here discuss about the purchase and sale of share investment which are made through the fair value…
Q: In 2019, Josiah Company purchased nontrading equity in investments which are irrevocably designated…
A: Answer: As per IFRS 9, Financial instruments, there are two different methods for classification of…
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A: The details of two investments made by the company are as follows: Investment 1 – Acquired on…
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A: Excess of cost over the carrying amount of net assets acquired (Jan 1, 2019):
Q: On January 1, 2021, Jeremiah Company purchased trading equity investments which are irrevocably…
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Q: 1. kol Company acquired a financial asset as its market value of Php5,000,000. Broker fees of…
A: transaction price= Invested money+legal fees+other cost-recoveries.
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A: Investment can be defined as the finance avenue where the funds are being allocated to those…
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A: Therefore, option (a) is the correct answer.
Q: Question: The total amount reported in 2019 profit or loss is? On January 1, 2019, an entity…
A: INVESTMENT IN SHARES OF ANOTHER COMPANY IS RECORDED AS AN ASSET IN SEPERATE FINANCIAL STATEMENT OF…
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Q: Question: The carrying amount of the investment on December 31, 2020? On January 1, 2019, an entity…
A:
Q: On July 1, 2019, Parent Company acquired the net assets of Subsidiary Company for a consideration…
A: When an entity purchases or acquires another entity then after this acquisition, a new surviving…
Q: An entity acquired an investment in equity instrument for P800,000 on 31 March 2020. The direct…
A: Company means the form of business where management is separately from owner and have perpetual…
Q: At the beginning of the current year, Jason Company acquired non-trading equity instrument for…
A: Solution: Cost of equity instruments = P4,000,000 + P700,000 = P4,700,000 Fair value of instrument…
Q: An entity acquired an investment in equity instrument for P800,000 on 31 March 2020. The direct…
A: As per FVTOCI the transaction cost incurred are to added to cost of investment only on initial…
Q: uestion: What is the 2019 net investment income?
A: Calculation of Fair Value of investment as on 31 Dec 2019 Particulars Amount Carrying…
Q: On January 1, 2019, Pacita Corp. purchased marketable equity securities to be held for trading…
A: For measurements under FVTOCI the transaction cost will be debited to profit or loss account…
Q: Gera Corporation owns two financial investments in the shares of listed companies. Details of which…
A: The details of investment of a company are as follows: Investment 1 – Acquired on September 1,…
Q: On January 1, 2019, FFF Company acquired a 10% interest in an investee for P3,000,000. The…
A: Carrying amount: The carrying amount is the recorded cost of an asset, net of any accumulated…
Q: 5. In 2020, the entity purchased the following equity securities for the purpose of selling them in…
A: Equity Securities An instrument that represents a claim on a corporation's assets and profits and…
Q: 19. On May 01, 2020, Maria Company acquired the net assets of Luisa Company for a consideration…
A: As per IFRS 3 Contingent consideration requires the acquirer to recognize any contingent…
Q: what gain would be recognized in the financial statements for the year ended 31 December 2020?
A: The gain to be recognized in the financial statements is based on purchase value of investment and…
Q: January 1, 2021, ABC acquired a 10% interest in an investee for P3,000,000. The investment was…
A: This is the method of an accounting which is used by a company to record the profits earned through…
Q: Gera Corporation owns two financial investments in the shares of listed companies. Details of which…
A: Investment in shares means where one company buys the share of another company and held as…
Q: On January 1, 2019, FFF Company acquired a 10% interest in an investee for P3,000,000. The…
A: Solution- Particulars Amount $ Existing 10% Interest Remeasured at fair value 4500000 New 15%…
Q: On January 1, 2019, FFF Company acquired a 10% interest in an investee for P3,000,000. The…
A: Solution- Particular Amount $ Fair value of 10% Interest 4500000 Historical cost 3000000…
Q: Luxemburg Company purchased the following investments during 2021:…
A: Luxemburg Company purchased the investments in 2021 are : Security A Cost = P180000 Transaction cost…
Q: On January 1, 2019, an entity purchased 15,000 shares of another entity representing a 12% interest…
A: Profit and loss Account In the profit and loss account which includes all type of revenues and…
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- On January 1, 2020, Marshall acquired an investment for P500,000 plus a purchase commission of P10,000. The investment is designated as financial asset at fair value through other comprehensive income. On December 31, 2020, quoted market price of the investment is P500,000. If the investment were sold, a commission of P15,000 would be paid. On December 31, 2020, the investment should be carried at A.P485,000B.P500,000C.P495,000D.P510,000For letters a to d, identify how much to add or deduct from the Investment in Associate account of ABC based on the following transactions or events: a. As of Jan. 1, 2021, the fair value of the inventory of X was P100,000 higher than its carrying value. All of the inventory were sold as of the end of the year. b. The fair value of equipment held by X is P500,000 while its carrying value is P360,000 as of the beginning of the year. It has a remaining useful life of 3 years as of Dec. 31, 2021. c. X sold inventories costing P150,000 to ABC for P200,000. Only 75% of these inventories were sold by ABC to third parties as of the end of the year. d. Actuarial gains for the year totaled P400,000.An entity accounts for non-current assets using the revaluation model. On 30 June 2020, the entity classified two items of non-current assets as held for sale in accordance with PFRS5. The following information relates to these assets: Asset 1 Asset 2 Carrying amount before classification as held for sale P400,000 P300,000 Revaluation surplus before classification as held for sale 60,000 30,000 Fair value, 30 June 2020 450,000 260,000 Estimated costs to sell 20,000 12,000 The balance of revaluation surplus as of 30 June 2020 after classification of the assets as held for sale is
- An entity accounts for non-current assets using the revaluation model. On 30 June 2020, the entity classified two items of non-current assets as held for sale in accordance with PFRS5. The following information relates to these assets: Asset 1 Asset 2 Carrying amount before classification as held for sale P400,000 P300,000 Revaluation surplus before classification as held for sale 60,000 30,000 Fair value, 30 June 2020 450,000 260,000 Estimated costs to sell 20,000 12,000 The total expense to be recognized in profit or loss related to these assets isOn December 29, 20x1, an entity commits itself to purchase a financial asset for ₱10,000, which is its fair value on commitment date (trade date). Transaction costs are immaterial. On December 31, 20x1 and on January 4, 20x2 (settlement date), the fair values of the asset are ₱12,000 and ₱15,000, respectively. If the entity uses the trade date accounting and that the investment is classified as held for trading, how much is the carrying amount of the investment in the December 31, 20x1 statement of financial position? 10,000 12,000 c. 2,000 d. 0An entity accounts for non-current assets using the revaluation model. On 30 June 2020, the entity classified two items of non-current assets as held for sale in accordance with PFRS5. The following information relates to these assets: Asset 1 Asset 2 Carrying amou before classification as held for sale P400,000 P300,000 Revaluation surplus before classification as held for sale 60,000 30,000 Fair value, 30 June 2020 450,000 260,000 Estimated costs to sell 20,000 12,000 The total expense to be recognized in profit or loss related to these assets is
- 1. On December 29, 20x1, an entity commits itself to purchase a financial asset for ₱10,000, which is its fair value on commitment date (trade date). Transaction costs are immaterial. On December 31, 20x1 and on January 4, 20x2 (settlement date) the fair values of the asset are ₱12,000 and ₱15,000, respectively. If the entity uses the settlement date accounting and that the investment is classified as held for trading, how much is the carrying amount of the investment in the December 31, 20x1 statement of financial position? _____________________ 2. On January 1, 20x1, Dagul Co. acquired 10%, ₱4,000,000 bonds for ₱3,807,853. The principal is due on January 1, 20x4 but interest is due annually starting December 31, 20x1. The yield rate on the bonds is 12%. On July, 1 20x1, Dagul Co. changed its business model. It was ascertained that the investment in bonds at amortized cost should be reclassified to held for trading securities on reclassification date. The bonds were quoted at 102, 103…Identify how much to add or deduct from the Investment in Associate account of ABC based on the following transactions or events: As of Jan. 1, 2021, the fair value of the inventory of X was P100,000 higher than its carrying value. All of the inventory were sold as of the end of the year.SPK NOW Company owned the following investments at year-end before fair value adjustments and amortization: FA@FVTPL, P 600,000; FA@FVTOCI, P350,000; FA@AC, P470,000. What total amount of noncurrent assets related to the investments should be reported at year-end? a.P950,000 b.P1,420,000 c. P470,000 d. P820,000
- On December 29, 20x1, an entity commits itself to purchase a financial asset for ₱10,000, whichis its fair value on commitment date (trade date). Transaction costs are immaterial. OnDecember 31, 20x1 and on January 4, 20x2 (settlement date) the fair values of the asset are₱12,000 and ₱15,000, respectively. If the entity uses the settlement date accounting and that theinvestment is classified as held for trading, how much is the carrying amount of the investment inthe December 31, 20x1 statement of financial position?An entity accounted for land using the revaluation model. On October 1, 2020, the entity classified the land as held for sale. At that date, the carrying amount of the land was P5,000,000 and the balance in the revaluation surplus was P1,500,000. At the same date, the fair value of the land was estimated at P5,500,000. The estimated cost of disposal is P100,000. On December 31, 2020, the fair value less cost of disposal of the land did not change. On October 1, 2021, the land was sold for P7,000,000.What amount of OCI is classified to retained earnings in 2021?An entity accounted for land using the revaluation model. On October 1, 2020, the entity classified the land as held for sale. At that date, the carrying amount of the land was P5,000,000 and the balance in the revaluation surplus was P1,500,000. At the same date, the fair value of the land was estimated at P5,500,000. The estimated cost of disposal is P100,000. On December 31, 2020, the fair value less cost of disposal of the land did not change. On October 1, 2021, the land was sold for P7,000,000.What amount of OCI is classified to retained earnings in 2021? * 1,500,000 2,000,000 500,000 Zero
