Question

On 31 December 20X6, Kirwan Company’s investments in equity securities were as follows:



Required:
1. Explain what the carrying value for each investment represents.
2. What was the original cost of the FVTOCI investment?
3. Kirwan reclassified the AC investment to a FVTPL investment on this date, when its fair value was $ 316,000. Explain how the reclassification will be reflected in the financial statements. How is fair value established?
4. Kirwan reclassifies the Orr common shares as a FVTPL investment when the fair value is $ 1,568,500. What accounting is required for this reclassification?
5. What is the rule for classifications in and out of the FVTOCIcategory?


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  • CreatedFebruary 17, 2015
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