On January 1, 2021, the company purchased 8% bonds in the face amount of P8,000,000. The bonds mature on January 1, 2026 and were purchased for P8,328,128 to yield 7%. Interest is payable annually every December 31. The business model for this investment is to collect contractual cash flows and to sell the bonds in the open market. Fair value Effective rate December 31, 2021 7,740,000 9% December 31, 2022 7,230,000 10% December 31, 2023 7,030,000 11% On December 31, 2023, the entity changed the business model to collect contractual cash flows only. On January 1, 2024, the fair of the bonds did not change. At what amount will the Financial asset-FVOCI be reclassified to Investment in bonds on January 1, 2024?
On January 1, 2021, the company purchased 8% bonds in the face amount of P8,000,000. The bonds mature on January 1, 2026 and were purchased for P8,328,128 to yield 7%. Interest is payable annually every December 31. The business model for this investment is to collect contractual cash flows and to sell the bonds in the open market.
Fair value Effective rate
December 31, 2021 7,740,000 9%
December 31, 2022 7,230,000 10%
December 31, 2023 7,030,000 11%
On December 31, 2023, the entity changed the business model to collect contractual cash flows only.
On January 1, 2024, the fair of the bonds did not change.
At what amount will the Financial asset-FVOCI be reclassified to Investment in bonds on January 1, 2024?
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