Problem 15-9 (IFRS) Judicious Company acquired an equity investment a number of yèars ago for P3,000,000 and classified it as at fair value through other comprehensive income. On December 31, 2019, the cumulative loss recognized in other comprehensive income was P400,000 and the carrying amount of the investment was P2,600,000. On December 31, 2020, the issuer of the equity instrument was in severe financial difficulty and the fair value of the equity investment had fallen to P1,200,000. What cumulative amount of unrealized loss should be reported as component of other comprehensive income in the statement of changes in equity for the year ended December 31, 2020? 1,400,000 1,800,000 1,000,000
Problem 15-9 (IFRS) Judicious Company acquired an equity investment a number of yèars ago for P3,000,000 and classified it as at fair value through other comprehensive income. On December 31, 2019, the cumulative loss recognized in other comprehensive income was P400,000 and the carrying amount of the investment was P2,600,000. On December 31, 2020, the issuer of the equity instrument was in severe financial difficulty and the fair value of the equity investment had fallen to P1,200,000. What cumulative amount of unrealized loss should be reported as component of other comprehensive income in the statement of changes in equity for the year ended December 31, 2020? 1,400,000 1,800,000 1,000,000
Accounting (Text Only)
26th Edition
ISBN:9781285743615
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter15: Investments And Fair Value Accounting
Section: Chapter Questions
Problem 15.28EX
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