Solution-Make a summary of all permitted valuation methods

Make a summary of all permitted valuation methods

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Reference no: EM132972251

At the beginning of the year, the company Roxen AB subscribed for 20x2 government bonds worth SEK 80,000,000. At the financial statements for 20x2, the bonds were worth SEK 85,500,000. Roxen AB plans to keep the bonds until they expire, which is 7 years after purchase, but Roxen may consider selling them in the event of a sharp price increase and thus they will report them at fair value. Government bonds are judged to have a very low credit risk.

Below is a summary of the bonds' market value:

RR = income statementBR = balance sheet T = assetsEk = equity

31/12 year 20x3 SEK 88,600 thousand

31/12 years 20x4 88 100 thousand SEK

The first 1/1 20x5 Roxen sells its bond portfolio for market value (SEK 88,100,000).

Problem a) Make a summary of all permitted valuation methods in accordance with IFRS 9 and show how the government bond is valued in the financial statements 20x2, 20x3, 20x4 and 20x5.

Reference no: EM132972251

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Make a summary of all permitted valuation methods

Reference no: EM132972251

Reference no: EM132972251

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