NOTES

Illustration
On January 1, 2020, an entity purchased a portfolio of bonds in accordance with
the business model of managing financial assets by selling the bonds in the short
term or in order to realize fair value changes. The acquisition cost is 26,000,000
and the face amount of the bonds is P 5,000,000. The journal entry to record the
acquisition is:

Financial asset - FVPL

Cash
FVPL means the financial asset is measured at fair value
through profit or loss.

During 2020, no securities were sold and on December 31,

2020, the fair value of the bonds is P5,500,000.