ASSESSMENT TASK 7

1. D P10,000 separate component of equity

December 1, 2018 : Original forward rate (2 months) P 1.01

December 31, 2018: Current (remaining) forward rate (1month) 0.99
Forex loss per unit P 0.02
X by: Number of foreign currencies 500,000
Foreign exchange loss - separate component of equity P 10,000

2. A P15,000 separate component of equity (debit)

January 1, 2018 beginning balance of foreign exchange loss -
other comprehensive income P 10,000
Settlement date of forward contract:
December 31, 2018: Current (remaining)
forward rate (1month) P 0.99
January 31, 2019: Spot rate 0.98
Forex loss per unit P 0.01
X by: Number of foreign currencies 500,000
Foreign exchange loss - other comprehensive income 5,000
January 31, 2019 balance - separate component of equity (debit) P 15,000