The following information is available about Kao Corp.'s investments at December 31, 2014. T his is the
Question:
Assume that Kao Corp. follows IFRS and applies !AS 39.
Instructions
(a) Prepare the adjusting entry(ies), if any, at December 31, 2014, assuming the investments are acquired for trading purposes and accounted for using the fair value through net income model with no separate reporting of dividends and other types of FV-NI investment income and losses.
(b) Prepare the adjusting entry(ies), if any, at December 31, 2014, assuming the investments are accounted for using the fair value through other comprehensive income model.
(c) Discuss how the amounts reported in the financial statements are affected by the choice of accounting method.
(d) Would any of your answers to (a) to (c) change if Kao Corp. had adopted IFRS 9? Explain briefly.
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Step by Step Answer:
Intermediate Accounting
ISBN: 978-0176509736
10th Canadian Edition, Volume 1
Authors: Donald Kieso, Jerry Weygandt, Terry Warfield, Nicola Young,