FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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On 3 September 2020, Debussy Ltd purchase 40,000 $1 listed equity shares of Red Copper Ltd at a price of $3 per share. Transaction costs were $5,000. At the year end of 31 December 2020, these shares were trading at $3.50. Debussy Ltd holds an active trading portfolio and the shares in Red Copper Ltd are acquired principally for the purpose of short-term profit.
Required:
Provide the accounting entries to account for initial and subsequent measurement of the share investment in Red Copper Ltd, in accordance with IFRS 9 / AASB 9 Financial Instruments. (narrations are not required).
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