ReSAn Review School fnc.

Arrditing Problem IREilIEO/ESPENILI.A

Quizzer 6 Sotution Guide
16. Ans. C.
InvestnEnt ilr De€ Shares (A;sociate)
Intial cGt (6/30/14) 2,400,000
Share from dividsds (2s0,000)
Share from rEt income 280.000 (2,244,OO0* 6 / 72)-?5o/o
fnvcstm$t in Asse Balarce 2,430.mo
17. Ans. B.
TEreaations costs - Expense
Aye Corf,. SharE (10,000)
BG lnc. Shares (20,000)
Dividerrj income - Be Irc. 1 20,000
Inter6t income - See Co. 50,000
Unrealized lrolding gain - FA t2t,94B
Share from rEt income - De€ C0 p. 280.000
Ibtal/Net Invstmst iDorrc 541,94a
18. Ans. D.
See Co Bon(Js at amortiz€d cost 1,930,690
Dee Cop. Shares - Assoc. 2.430-000
Total nDncurut iNestm€tc 4,3@.69()
Amortization taue: Financial as*t bt amortized ct, See Co at effuctive rate 100,6
Corect Int. Nominal Int Amortization Balarrce
october 1, 2014:
DecemhEr 31. 2014: 57,690 5rl,O0O
1,923,000 *xdudtng *tftd inE.rrs,i
lune 30, 2015: 7,690 L93q69(,
115,841 100,000 15,841 1,946,531
qltem3tive Solrition: Financial
a:;sei at amortized cost: S€e Co 1oyo, ZM eorEjs
Amortiz(d cmt shall be pV cf caslr flows 6ing onqlnal effetive
Ete (69,6 smi_iln@lly)
Prircipal {2,000,000*0.7921) t,Sg4,tB7
InteBt ( 100, 0O0*3.4651 )
Arnortizecl cost, 12/31,/ 14
__Je3qgP3_
19. Ans. D-
TEnsctions costs - Expense
Aye Corp. Shares (1 0,000)
Be lnc. Shar. (20,000)
Dividerd income - Bee Inc- 120,000
Intere;t income - Se ao ' 57,690 *(1,923,000*12%i3l12)
Unrsli:d l.olding gain . FA 80,000 UHG fiom Aye aN Efr only
Share fmm rEt income - Dee Ccr;,,. 280_000
Total/Net fnv6tltHt in@rc 50r.6eo

q89F LEM 4 r 5!IA!ry-eo_Rp.

20. Are. A.
Froceeds frcm sale of half of SlBijy bonds S1,25O,OOO
Amortized cost ftober 16, (face litue) SO.OOO.OOO
R€lized gain on sate t- 1ffi;Eo I
21. Ans. B.

PATA'IAS (1M+P64) 64,000,000 *rcdassification

62,000,oo0 b FA thrdtgh p&L rct allowed.
BAWA (250,000*P74) 18,500,o00 20,000,000
82.sqo-o0o
Unulizcd trolding gain - SHE -qz.o!s,os0

22. Ars. C.
lnteresl. from SIzuY bords (Apr. i5 ro .Jct. 15): plOoMr t)o/o"6/tz
Irterest from remaininq SIBUy bonds (al_ 15 _ Dec. 31): piOqito.*.2.5/LZ s,000,000
Cmh diudmds frcm PATATAS 1,041,667
Total intGratt .nd divilqtds it@me, 2Ol3 1.500.000
f-iFa:.c:ffii-l
23. Ans. A.
Proceds frcm sale of hatf of PATATAS (SOO,OO0sh*p6S) 32,500,000
Original @st ( Z,OOO,OOO/2) 31,000.000
Reali4d gain on salc, unds pAS 39 f-I..soi'ffi-l
24. Ans. D.
under PFR' 9, Fioancial .lnsfrume.'-5, rqycling of oci/L to P/L is mt allowed, 4 a rult,
the dispoal of a Firercia! ,4s*t et t-MV thrcugh p/L-
there shall fu N gain or 6s on Lne

25. Ans. D.
Preeds frcm sle of al! BAWA srr;,,s (250,000sh*p78) 19,500,000
Original co3t 20.000.000
Rcalized loss on salq unds pA; 39 ftEddfil
26. Am. D.
under PFRS 9, FiBrcial Infilrmen5, rxycling of ocI/L to P/L is rct allowed, as a regrit, ttere
the dispoet of a FiBrcial Asset at Fl4l/ thrcugh p/L
shail fu m gain or l8 on tl.-

ELO-ELEM 5r ilaRlAtl coRP,

27. Ans. A.
Proceds frcm ule (9,000*65) 585,000
Original cost 441.000
Rcalizcd gain on salc (pAS 3S) 144-(xX)

28. Ans. D-
Under PFRS g, Fimncial Ins{nttnen';, r*y.hng of oa/L b P/L is nct allowed,6 a Esu/C there shall tp rc gain or los on thc
tlB disposl of a FiErcid l*t at r;fi|/ thrcugh p/L-

29. Ans. C.
FMV (12114) C6t
DEF Corp- ShatE 1.140,000 1,080,000
GHI Corp"Shar€s 348,000 360,000 I

JKL Shar.es I

Unrealizcd holding gain - SHE

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