Because of the errors, the retained earnings by the end of 2017, after closing, is understated/overstated by (assuming the entity intended to transfer any accumulated unrealized holding gain/loss to equity):Zero8,00052,00060,000None of the choices You were engaged for the first time by XYZ Company to audit their financial statements as of and forthe period ended December 31, 2017. In your audit, you were able to discover the following entry madeby your client on August 3, 2017:Cash140,00020,000Unrealized holding gain - OCIFinancial asset - FVOCIRealized gain100,00060,000Based on your investigation, the financial asset derecognized on August 3 was an investment in ABCCompany shares, wherein XYZ used PFRS 9 and opted to account for the investiment at fair valuethrough other comprehensive income or loss. The said shares were purchased early April of 2016. Thetransaction cost incurred by the entity in purchasing the shares was P8,000. The said transaction costwas recorded as an expense.

As per PFRS 9, Financial instruments, When any financial asset is recognized as fair value through…

You were engaged for the first time by XYZ Company to audit their financial statements as of and for the period ended December 31, 2017. In your audit, you were able to discover the following entry made by your client on August 3, 2017: Cash 140,000 20,000 Unreulized holding gain - OCI Financial asset - FVOCI Realized gain 100,000 60,000 Based on your investigation, the financial asset derecognized on August 3 was an investment in ABC Company shares, wherein XYZ used PFRS 9 and opted to account for the investment at fair value through other comprehensive income or loss. The said shares were purchased early April of 2016. The transaction cost incurred by the entity in purchasing the shares was P8,000. The said transaction cost was recorded as an cynense

You were engaged for the first time by XYZ Company to audit their financial statements as of and for the period ended December 31, 2017. In your audit, you were able to discover the following entry made by your client on August 3, 2017: Cash 140,000 20,000 Unreulized holding gain - OCI Financial asset - FVOCI Realized gain 100,000 60,000 Based on your investigation, the financial asset derecognized on August 3 was an investment in ABC Company shares, wherein XYZ used PFRS 9 and opted to account for the investment at fair value through other comprehensive income or loss. The said shares were purchased early April of 2016. The transaction cost incurred by the entity in purchasing the shares was P8,000. The said transaction cost was recorded as an cynense

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 3P

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