QUIZ 1: AUDIT OF INVESTMENT

CASE 1

16 FV AT DEC 31 2024 SH AMOUNT

NORTH CO SHARES 100,000 5,800,000
EAST CO 75,000 3,375,000
TOTAL 9,175,000

17 NORTH SHARES
3/31/2024 4 400,000
9/30/2024 6 600,000
EAST SHARES
5/15/2024 3 225,000
11/15/2024 2 150,000
TOTAL INVESTMENT INCOME 1,375,000

18 NORTH CO RECORDED CORRECT

INITIAL RECOGNITION 7,500,000 7,200,000

DEC 31 2023
TOTAL FV 9,000,000 9,000,000
TOTAL CV 7,500,000 7,200,000
RECORDED UGOL-PL 1,500,000 1,800,000

FEB 15 2024
TOTAL SP 3,750,000 3,750,000
TOTAL CV 2,500,000 3,000,000
GAIN ON SALE 1,250,000 750,000

EAST CO
INITIAL RECOGNITION 2,250,000 2,250,000

DEC 31 2023
TOTAL FV 3,000,000 3,000,000
TOTAL CV 2,250,000 2,250,000
UNRECORDED UGOL 750,000 750,000
ADJUSTMNET TO RETAINE EARNINGS

19 NO RECLASSIFICATION OF EQUITY INVESTMENT THUS, REVERTED BACK THE EIFVPL TO EIFVOCI

PER BOOK PER AUDIT
NORTH CO SHARES-PL 5,000,000 5,800,000
EAST CO-OCI 2,250,000 3,375,000

PAJE
 INVESTMENT IN PL-NORTH CO 800,000
INVESTMENT IN OCI-EAST CO 3,375,000
INVETMENT IN PL-EAST CO 2,250,000
UGOL-OCI 1,125,000
UGOL-PL 800,000
TOTAL 4,175,000 4,175,000

NET ADJUSTMENT TO EIFVPL (1,450,000)

20 NET ADJUSTMENT TO EIFVOCI 3,375,000

CASE 2: Analytical procedures for investments in equity

JAN 1 2023 PER BOOK PER AUDIT

INITIAL RECOGNITION 2,000,000 2,000,000

JUN 15 2023
DIVIDEND INCOME 120,000 170,000

JULY 31 2023
FV OF 10% 0.15 2,200,000
CV 2,000,000
GAIN ON RECLASS-PL 200,000

FV OF 10% 2,200,000
FV OF 15% 3,300,000
IIA 5,500,000

EIFVOCI 3,300,000
IIA 5,500,000
EIFVOCI-DERECOGNIZE 2,200,000

IIA INITIAL 5,500,000

DIVIDENDS (500,000)
SOPA 520,833
IIA, END 2023 5,520,833
DIVIDENDS (750,000)
SOPA 1,625,000
IMPAIRMENT (395,833)
21 IIA, END 2024 6,000,000
22 DIVIDEND INCOME 170,000
SOPA 520,833
TOTAL INVESTMENT INCOME FOR 202 690,833
 23 PAJE
IIA 5,520,833
EIFVOCI 3,300,000

RECORDED UGOL-OCI (450,000)

UNRECORDED GAIN ON RECLASS 200,000
UNRECORDED SOPA 520,833
NET ADJUSTMENT TO RE 270,833

24 NET ADJUSTMENT TO IIA 6,000,000

25 RECORDED
DERECOGNIOZED CV 2,000,000
JULY 31 2023 3,300,000
DEC 31 2023 450,000
DEC 31 2024 250,000
NET CREDIT TO EIFVOCI 6,000,000

CASE 3: Analytical procedures for debt investments

Debt investments at FVPL:

JAN 1 2023
PER BOOK
DIFVPL 2,000,000
CASH 2,000,000

PER AUDIT
DIAC 1,848,368
CASH 1,848,368
AMOUNT
P 2,000,000 1,241,842
I 160,000 606,526
TOTAL INITIAL PV 1,848,368

DEC 31 2023
CASH 160,000
INTEREST INOCME 160,000

PER AUDIT
CASH 160,000
DIAC 24,837
INTERST INOME 184,837

P 1,271,036
I 485,976
TOTAL FV AT DEC 31 2023 1,757,012
0.635518
3.037349

DEC 31 2024
CASH 160,000
INTERST INCOME 160,000

PER AUDIT
CASH 160,000
DIAC 27,320
INTERST INOME 187,320

Debt investments at FVOCI:

JAN 1 2023
PER BOOK
EIFVOCI 1,000,000
CASH 1,000,000

PER AUDIT AMOUNT

P 1,000,000 508,349
I 90,000 632,122
TOTAL INITIAL PV 1,140,471

EIFVOCI 1,140,471
CAHS 1,140,471

DEC 31 2023
PER BOOK
CASH 90,000
INTEREST INOME 90,000

PER AUDIT
CASH 90,000
DIAC 10,167
INTEREST INCOME 79,833

TOTAL FV 1,020,000
TOTAL AC 1,130,304
CUGOL-OCI (110,304)

UGOL-OCI (110,304)
DIAC (110,304)

DEC 31 2024
 PER BOOK
CASH 90,000
INTEREST INCOME 90,000

PER AUDIT
CASH 90,000
DIAC 10,879
INTEREST INCOME 79,121

TOTAL FV 1,010,000
TOTAL AC 1,119,426
CUGOL-OCI (109,426)

DIAC 879
UGOL OCI 879

26 DIAC 1,900,525
DIFVOCI 1,119,426
TOTAL CV OF INVESTMENT 3,019,951

27 TOTAL INVESTMENT INCOME FOR 2024

DIAC-8% 187,320
DIFVOCI-9% 79,121
TOTAL INVESTMENT INCOME 266,442

28 DIAC-8% PER BOOK PER AUDIT

INTERST INCOME 160,000 184,837

DIFVOCI-9%
INTEREST INCOME 90,000 79,833
UNRECORDED UGOL - (110,304)
NET DEBIT ADJUSTMENT TO RE 2024

29 NET DEBIT ADJUSTMENT TO DIAC 1,900,525

30
PER BOOK PER AUDIT
DIAC 2,000,000 1,848,368
DIFVOCI 1,000,000 1,140,471
NET ADJUSTMENT TO CASH

CASE 4: Analytical procedures

Equity investment:
JAN 1 2023
INITIAL RECOG 2,275,000 0.100

SEPT 30 2023
CASH 10,000
DIVIDEND INCOME 10,000

DEC 31 2023
TOTAL FV 2,380,000
TOTAL CV 2,275,000
UGOL-OCI 105,000

JUNE 30 2024
TOTAL SP (PRESUMED FV) 1,125,000
TOTAL CV 1,020,000
FV ADJUSTMENT (UGOL-OCI 105,000

SEPT 15 2024
CASH 8,571
DIVIDEND INCOME 8,571

DEC 31 2024
TOTAL FV NG REMAINING 1,460,000
TOTAL CV NG REMAINING 1,360,000
UGOL-OCI 100,000

TOTAL INVETMNET INCOME 2024 8,571

TOTAL INVESTMENT-SFP 1,460,000

Debt investment: OCI

JAN 1 2023 PFV

P 3,000,000 0.620921
I 360,000 3.790787
INITIAL RECOG

DATE NI
JAN 1 2023
DEC 31 2023 360,000
DEC 31 2024 360,000
DEC 31 2025 360,000
DEC 31 2026 360,000
DEC 31 2027 360,000

DEC 31 2023
TOTAL FV 3,300,000
TOTAL AC 3,190,191
 CUGOL 2023 109,809

CASH 360,000
DIAC 37,255
INTERST INCOME 322,745

JUNE 30 2024
TOTAL PROCEEDS 1,750,000
LESS: ACCRUED INCOME 90,000
NET PROCEEDS 1,660,000
TOTAL AC AS OF JUNE 30 2024 1,585,782
REALIZED GAIN 74,218

AC AS OF JUNE 30

BAL
31 EIFVOCI 8,571
DIOCI
SOLD 161,372
REM 79,289
TOTAL INVETSMENT INCOME 249,233

32 TOTAL CV OF INVETSM,NET
EIFVOCI 1,460,000
DIOCI 1,635,000
TOTAL CV OF INVETSMENT 3,095,000

33 REALIZED GAIN FOR 2024 74,218

34 EI CUGOL-OCI 2024
TOTAL FV 1,460,000
TOTAL INITIAL 1,300,000 160,000

DI CUGOL-OCI 2024
TOTAL FV REM 1,635,000
TOTAL AC REM 1,575,071 59,929
TOTAL CUGOL AS OF 2024 219,929

35 EI UGOL 205,000
DI OCI
SOLD
CUDOL END 74,218
CUDOL BEG 54,905
UGOL OCI 19,313

CUGOL REM 59,929

CUGOL BEG 54,905 5,025
UGOL-OCI 229,338
 DIFFERECNCE

1,800,000

(500,000)

750,000
2,050,000

RTED BACK THE EIFVPL TO EIFVOCI

DIFFERENCE
800,000
1,125,000
DIFFERENCE 15 20
2 2
15 15
40
170,000 44 55
0.800
16
17
18
PVF
0.620921 0.620921
3.790787 (3.790787)

DATE NI EI AMORT CV
JAN 1 2023 1,848,368
DEC 31 2023 160,000 184,837 24,837 1,873,205
DEC 31 2024 160,000 187,320 27,320 1,900,525
DEC 31 2025 160,000 190,053 30,053 1,930,578
DEC 31 2026 160,000 193,058 33,058 1,963,635
DEC 31 2027 160,000 196,364 36,364 1,999,999
PVF
0.508349 0.508349
7.023582 (7.023582)

DATE NI EI AMORT CV
JAN 1 2023 1,140,471
DEC 31 2023 90,000 79,833 10,167 1,130,304
DEC 31 2024 90,000 79,121 10,879 1,119,426
DEC 31 2025 90,000 78,360 11,640 1,107,785
DEC 31 2026 90,000 77,545 12,455 1,095,330
DEC 31 2027 90,000 76,673 13,327 1,082,004
DEC 31 2028 90,000 75,740 14,260 1,067,744
DEC 31 2029 90,000 74,742 15,258 1,052,486
DEC 31 2030 90,000 73,674 16,326 1,036,160
DEC 31 2031 90,000 72,531 17,469 1,018,691
DEC 31 2032 90,000 71,308 18,692 1,000,000
 CUGOL
110,304
CUGOL END (109,426) 878
CUGOL, BEG 110,304
UGOL-OCI 879 109,426

DIFEFERENCE
24,837

(10,167)
(110,304)
(95,635)

DIFFERENCE
151,632
(140,471)
11,161
 0.06

AMOUNT
1,862,763 0.620921
1,364,683 (3.790787)
3,227,446

EI AMORT CV
3,227,446
322,745 37,255 3,190,191
319,019 40,981 3,149,210
314,921 45,079 3,104,131
310,413 49,587 3,054,544
305,454 54,546 2,999,999
3,190,191
180,000
161,372
3,171,563
1,585,782
1,585,782

DATE NI EI AMORT CV
JUNE 30 2024 1,585,782
DEC 31 2024 90,000 79,289 10,711 1,575,071
DEC 31 2024 157,507 (157,507) 1,732,578