Provide the journal entries for the change in fv

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Reference no: EM133378824

Questions

(i) ABCD Fund Ltd("Fund") has signed an agreement with Lottotech ("Company") on 02/15/2021 to invest an amount up to USD$5,000,000 over a period of time. The Fund reporting currency is in CAD$ and the reporting date is 12/31/2021. On 06/02/21 the Fund sent an amount of CAD$1,300,000 and a further amount of CAD$2,500,000 on 12/20/2021 to the Company. Assuming the FX rate for CAD/USD was 1.350 on 02/15/2021, 1.300 on 06/02/2021 and 1.250 on 12/20/2021, please provide all the accounting entries for the investments made during 2021 at the Fund level and mention the USD$ amount left for investment in the Company.

(ii) As at the reporting date the CAD/USD FX Rate is 1.450 and this is the only change in FV applicable for Lottotech at this date, please provide the journal entries for the change in FV of investment as at the reporting date.

Reference no: EM133378824

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