On December 31, 2015, Val d'Or Ltée held the following debt and equity investments: (a) Calculate the

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On December 31, 2015, Val d'Or Ltée held the following debt and equity investments:
On December 31, 2015, Val d'Or Ltée held the following

(a) Calculate the cost and fair value of Val d'Or's investment portfolio at December 31.
(b) If Val d'Or considers its entire portfolio to be trading investments, at what value should the investments be reported on the statement of financial position at December 31 if it uses the fair value through profit or loss model? At what amount, and where, should any unrealized gains or losses on the debt securities be reported?
(c) If Val d'Or intends to hold the debt securities until maturity and uses the amortized cost model, at what value should the debt investments be reported on the statement of financial position at December 31? At what amount, and where, should any unrealized gains or losses be reported?
(d) If all of the investments held by Val d'Or related to private companies and no fair value information relating to these securities could be obtained, what would be the impact on the income statement and on the statement of financial position?

Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...
Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...
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Financial Accounting Tools for Business Decision Making

ISBN: 978-1118644942

6th Canadian edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine

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