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On January 1, 2019, Peter Corporation purchased a debt instrument at its face value of P3,000,000. The term of the contract is 15 years with an annual coupon of 5%. On December 31, 2019, the fair value of the instrument decreases to P2,955,000. 12-month expected credit losses are P30,000. Based on the above data, determine the net amount to be recognized in 2019 profit or loss and the amount to be reported on the December 31, 2019 Statement of Financial Position if the debt instrument is classified as: a. FA@AC* b. FA@FVTOCI * c. FA@FVTPL* *amount to presented in profit or loss and SFP respectively

On January 1, 2019, Peter Corporation purchased a debt instrument at its face value of P3,000,000. The term of the contract is 15 years with an annual coupon of 5%. On December 31, 2019, the fair value of the instrument decreases to P2,955,000. 12-month expected credit losses are P30,000. Based on the above data, determine the net amount to be recognized in 2019 profit or loss and the amount to be reported on the December 31, 2019 Statement of Financial Position if the debt instrument is classified as: a. FA@AC* b. FA@FVTOCI * c. FA@FVTPL* *amount to presented in profit or loss and SFP respectively

Intermediate Accounting: Reporting And Analysis
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
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 1RE
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On January 1, 2019, Peter Corporation purchased a debt instrument at its face value of P3,000,000. The term of the contract is 15 years with an annual coupon of 5%. On December 31, 2019, the fair value of the instrument decreases to P2,955,000. 12-month expected credit losses are P30,000.

Based on the above data, determine the net amount to be recognized in 2019 profit or loss and the amount to be reported on the December 31, 2019 Statement of Financial Position if the debt instrument is classified as:

a. FA@AC*

b. FA@FVTOCI *

c. FA@FVTPL*

*amount to presented in profit or loss and SFP respectively

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