Repeat part 1 in P9.10 if the investment is also held for sale, in addition to collecting contractual cash flows. Ignore expected credit loss estimation in this question.

Data from  P9.10

A Co has as its functional currency the Singapore dollar (S$) and enters into the following transaction. The business model of A Co is to hold investments to collect contractual cash flows that are principal and interest.

K Co is a wholly-owned subsidiary of A Co. The functional currency of K Co is the United States dollar (USD). K Co accounts for its issued bond at amortized cost. The foreign exchange rates are shown below:

Required
1. Prepare the journal entries for the bond transaction in A Co’s books on 1 January 2010, 30 June 2010, 31 December 2010, 30 June 2011 and 31 December 2011 in accordance with IFRS 9. Ignore taxes. Ignore expected credit loss estimation in this question.

Transcribed Image Text:

Date of purchase.... Investment in quoted bond of K Co 1 January 2010