It refers to income derived from investing in equity securities

Are assets that is held by the entity for accretion of wealth, for capital appreciation or for other benefits

Income derived from investing in debt securities

If the entity does plan to sell its investment in debt securities that is held for collection of contractual cash flows and for sale of the financial asset, its category should fall under

It refers to income derived from investing in long term assets; such as building and land

It refers to any securities that represents a creditor relationship with an entity; one example is corporate bonds

If the entity does plans to sell its investment in equity securities that is held for trading, its category should fall under

It is an instrument representing ownership of shares of stock of another entity

If the entity does not plan to sell its investment in debt securities that is solely held for collection of contractual cash flows, its category should fall under

Which of the following is not a category of financial assets?

All of the following financial assets shall be measured at fair value through profit or loss, except

Transaction cost include

The fair value option is applicable to

Entities are required to measure financial asset based on all of the following, except

Irrevocable election cannot be changed by the entity all throughout its reporting period.

Significant Influence is the power to participate in financial and operating policies of another entity. Percentage to gain a significant influence in another entity is more that fifty percent.

Investment in equity securities is held for trading is measured at fair value through profit or loss

Revocable designation is the power of the entity to designate an investment to any category

Investment in equity security that is not held for trading is measured at fair value through amortized cost

Accretion of wealth is a process of deriving income through interest, dividends, and rentals

Investments are held for capital appreciation. Capital appreciation is a diverse reason for holding an investment

Trading securities are normally classified as current assets because these investments are expected to realized within twelve months after reporting period

Transaction costs that are recorded as expense in case of the investment that is categorized as FA@FVOCI and FA@AC

Trading securities are debt and equity securities that are purchased with the intent of selling them in the near term

During 2019, L Company purchased trading securities with the following cost and market value on December 31, 2019:

SECURITIES COST MV

A-1,000 shares 200,000 300,000

B-10,000 shares 1,700,000 1,900,000

C-20,000 shares 3,100,000 2,900,000

The entity sold 10,000 shares of Security B on January 15, 2020, for P 150 per share.

What amount of unrealized gain or loss should be reported in the income statement for 2019?

At the beginning of current year, Karl Company acquired non-trading equity instrument for P 4,100,000.

The equity instrument is irrevocably designated as financial asset at fair value through other comprehensive income. The transaction cost incurred amounted to P 700,000. The fair value of the instrument was P 5,500,000 at year-end and the transaction cost that would be incurred in the sale of investment is estimated at P 600,000. What amount of gain should be recognized in other comprehensive income?

On January 1, 2019, Bruno Company purchased equity securities to be held at fair value through other comprehensive income. On December 31, 2019, the cost and market values were:

COST MV

Security X 2,000,000 2,400,000

Security Y 3,000,000 3,500,000

Security Z 5,000,000 4,900,000

On July 1, 2020, the entity sold security X for P 2,500,000. What amount should be recognized directly in retained earnings as a result of the sale of financial asset in 2020?

On March 1, Manuel Company purchased 10,000 ordinary shares at P 80 per share. On September 30, Manuel Company received 10,000 share rights to purchase additional 10,000 shares at P 90 per share. On September 30, the share had a market value of P 96 and the share right had a market value of P 6. What amount should be reported for investment in share rights on September 30?

John Company owned 30,000 ordinary shares of Paul Company acquired on July 31 at a total cost of P 1,100,000. On December 1, John received 30,000 share rights from Paul. Each right entitles the holder to acquire one share at P 45. The market price of Paul’s shares on this date was P 50 and the market prices of each share was P 10. John sold the rights on December 31 for P 450,000 less a P 10,000 commission. What amount should be reported as gain from the sale of the rights?

Blessie Company owned 50,000 ordinary shares of Lordie Company. These 50,000 shares were purchased by Blessie for P 120 per share. On August 30, Lordie distributed 50,000 share rights to Blessie. Blessie was entitled to buy one new share of Lordie for P 90 cash and two of these rights. On August 30, each share had a market value of P 130 and each right had a market value of P 30. What total cost should be recorded for the new shares that are acquired by exercising the rights?

1. Elesis Company issued rights to subscribe to its stock, the ownership of 4 shares entitling the shareholders to subscribe for share at P 100. Ariane Company owns 50,000 shares of Elesis Company with a total cost of P 5,000,000. The share is quoted right-on at 125. What is the cost of the new investment if all of the stock are exercised by the investor?

Which of the following is not treated as income upon declaration?

If the equity securities are acquired in an exchange, the cost is determined by the first priority, which among given choices is the first?

If two or more securities acquired at a single cost, or lump sum, the single cost is allocated to the securities acquired on the basis of

The dates related to share dividends include the following, except

Special assessment is treated as