What amount of gain or loss should company a disclose

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On May 1, 2017 Company A purchased short-term Php 4,000,000 face value 9% debt instruments for Php 3720,000 including the accrued interest and designated as an investment to profit or loss, which is based on the business model of the entity to buy and sell portfolio of securities and to make profit for short-term movements in the market rate of interest Company A incurred and paid Php 20,000 transaction cost related to the acquisition of the instrument The debt instruments mature on January 1, 2020 and pay interest semi-annually January 1 and July 1.

  • On December 31, the fair market value of the instrument is Php 3,880,000 and estimated cost to sell of Php 40,000

Problem 1: What amount of gain or loss should Company A disclose in profit or loss in the statement of comprehensive income for the year ended December 31, 2017?

Reference no: EM132760876

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