On 1 January 2020, an entity purchased a debt instrument at its face value of P1,000,000. The contractual term is ten years with an annual coupon of 6%. On 31 December 2020, the fair value of the instrument decreases to P955,000. 12- month expected credit losses as determined under the impairment model are P25,000. The amount to be recognized in P/L assuming the investment is classified as FVTOCI is?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Manshukh 

On 1 January 2020, an entity purchased a debt instrument at its face value of P1,000,000. The contractual term is ten years
with an annual coupon of 6%. On 31 December 2020, the fair value of the instrument decreases to P955,000. 12- month
expected credit losses as determined under the impairment model are P25,000. The amount to be recognized in P/L
assuming the investment is classified as FVTOCI is?
Transcribed Image Text:On 1 January 2020, an entity purchased a debt instrument at its face value of P1,000,000. The contractual term is ten years with an annual coupon of 6%. On 31 December 2020, the fair value of the instrument decreases to P955,000. 12- month expected credit losses as determined under the impairment model are P25,000. The amount to be recognized in P/L assuming the investment is classified as FVTOCI is?
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