How the entity will most likely classify the investment

Assignment Help Accounting Basics
Reference no: EM132756945

Problem 1: An entity plans to purchase a new machine in a few years' time. The cost of the new machine is significant. To address this, the entity invests in debt securities. The entity's investment management strategy is to hold for the investment and collect the investment income in the form on interest. However, when opportunity arises, the entity sells the investment in order to realize fair value gain. The entity reinvests any proceeds from sales until the date of the purchase of the new machine. In accordance with the principles of PFRS #9, the entity will most likely classify the investment as subsequently measured at,

a) Amortized cost          c) FVOCI (mandatory)

b) FVPL                       d) FVOCI (election)

Reference no: EM132756945

Questions Cloud

Phenomena of complete validity-fulfillments of wishes : On the contrary, they are psychical [mental] phenomena of complete validity-fulfillments of wishes.
Business analytics : Examine the role of Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM).
What b co should account for these bonds at : What B Co. should account for these bonds at? B Co., purchased bonds at a discount in the open market as an investment. The bonds will be held in order
Determine the profit maximizing price : Monthly demand at each price is 15,000; 25,000; and 40,000, respectively. Monthly projected fixed costs $150,000. Determine the profit maximizing price
How the entity will most likely classify the investment : How the entity will most likely classify the investment as subsequently measured at? An entity plans to purchase a new machine in a few years' time
Rfid technology : Evaluate the use and applicability of Radio Frequency Identification Devises (RFID) in industry today.
Is their conduct protected by the first amendment : Is their conduct protected by the First Amendment? Fully explain your answer. Be sure to support your answer with scholarly sources and appellate court opinions
Describe legal categories of business organization : Identify and describe the legal categories of a business organization contrasting tax-related advantages and disadvantages.
Prepare grocery store statement of financial position : Prepare her grocery store's Statement of Financial Position. In order to prepare the statement, identify the assets and liabilities of "RSB Grocery Storre"

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd