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Can entity eric recognize the cumulative gain in statement

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Question 1: Entity Eric holds a small number of shares of Angel bhd. These shares are classified at FV through OCI. On 20 December x2, the fair value of these shares is RM240,000 and the cumulative gain recognized on OCI is RM12,000. On the same date, Angel Bhd is acquired by Takeover Bhd and Entity Eric receives shares in Takeover Bhd in exchange for those in Angel Bhd. The shares are of equal fair value.

Required:

Can Entity Eric recognize the cumulative gain in the statement of profit or loss?

Question 2: Jeb signed a factoring agreement with Fine Factors. Jeb's trade receivables are as follows:

a. Group A: Total amount RM4 million. They are administered and collected by Fine Factors with recourse. It will pay Jeb 100% of the carrying amount and charge 1% on the amount each month. Jeb will reimburse in full any balance outstanding after three months

b. Group B: Total amount RM10 million. They are administered and collected by Fine Factors without recourse. It will pay Jeb 95% of the carrying amount

c. Group C: Total amount RM1 million. They are administered and collected by Jeb

Required:

Show how Jeb should treat the various trade receivables

Reference no: EM132626120

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