TRUE OR FALSE: A debt instrument at FVPL is initially recorded at purchase price plus transaction cost.

TRUE OR FALSE: A debt instrument shall be measured subsequently at amortized cost when the business model is to collect contractual cash flow that are solely payments of principal and interest.

TRUE OR FALSE: Unrealized fair value gains and losses are recognized in net income for debt securities at FVOCI.

TRUE OR FALSE: When an equity investment is at FVOCI and is sold, the unrealized gains and losses in OCI shall be subsequently reversed in Retained earnings.

TRUE OR FALSE: The number of share warrants received as evidence of share rights is equal to the number of shares held by the shareholder.

TRUE OR FALSE: The Unrealized Gain/Loss–FVOCI account is reported as part of profit or loss.

TRUE OR FALSE: A share split does not affect the equity of a shareholder in the issuing corporation, nor does it affect the issuing corporation’s total shareholders’ equity.

TRUE OR FALSE: A liquidating dividend received on equity investments at FVPL is not credited to income account but to the investment account.

TRUE OR FALSE: The unrealized Fair Value or Market Adjustment (Unrealized Gain/Loss–FVOCI) account has a normal credit balance.

TRUE OR FALSE: When dividends are distributable in the form of investee’s non-cash assets, the investor records the assets received as dividend revenue at the assets’ fair value.

TRUE OR FALSE: An investment of more than 50 percent of the voting shares should lead to a presumption of control over an investee.

TRUE OR FALSE: Gain or loss on sale of equity investment at FVPL is the difference between the net selling price and the original cost of the investment.

TRUE OR FALSE: In the absence of actual fair value of a share right, the theoretical value is used and computed as fair value of share ex-rights minus subscription price and the total is divided by the number of rights needed to buy one share.

TRUE OR FALSE: The exercise of one share warrant would always enable the holder to acquire one share.

Which of the following is generally not a purpose for acquiring investments?

Unrealized holding gains and losses which are taken to profit or loss are from securities that are classified as

Any instrument representing ownership shares and right to acquire ownership is

Under PFRS 9, the classification of debt investments shall be made on the basis of

All of the following are characteristics of debt securities, except

Which of the following is not correct in regard to debt securities held for trading?

At which of the following dates has the shareholder theoretically realized income from dividend?

What is the effect of a share split upon (1) the number of shares; (2) cost per share?

What is the unrealized gain (loss) reported in profit or loss for the year 20x1?

How much is the gain or loss on the sale of BY shares?

What is the equity investment at FVPL balance reported at December 31, 20x2 statement of financial position?

On July 1, 20x1, Lay Company purchased as debt investment at fair value through profit or loss P500,000 face value Zay Company’s 8% bonds for P455,000. The bonds mature on June 30, 20x6 and pay interest annually on June 30. On December 31, 20x1, the bonds have a market value of P472,500. On February 14, 20x2, Lay sold the bonds for P460,000. On its December 31, 20x1 statement of financial position, what amount should Lay report as financial assets at fair value through profit or loss?

On July 1, 20x1, Lay Company purchased as debt investment at fair value through profit or loss P500,000 face value Zay Company’s 8% bonds for P455,000. The bonds mature on June 30, 20x6 and pay interest annually on June 30. On December 31, 20x1, the bonds have a market value of P472,500. On February 14, 20x2, Lay sold the bonds for P460,000. What is the gain or loss on the sale of the debt investment in 20x2?

What amount should Saul Company report as unrealized gain in its 20x2 profit or loss (income statement)?

What amount should Saul Company report as unrealized gain/loss in the shareholders’ equity of its December 31, 20x2 statement of financial position?

How much is the total dividend revenue for the year 20x2?

How much is the gain on the sale of shares on December 10?

What would be the initial measurement of the investment?

Assuming that the shares were purchased on February 1, 20x2, for Dagul Company under the same facts, what would be the initial measurement of the investment?

What is the total cost of the investment acquired through the exercise of rights?