Presented below is selected information related to the financial instruments of Dawson Ltd. at December 31, 2022

Question:

Presented below is selected information related to the financial instruments of Dawson Ltd. at December 31, 2022 (amounts in thousands). This is Dawson Ltd.’s first year of operations.

Instructions

a. Dawson elects to use the fair value option whenever possible. Assuming that Dawson’s net income is ¥100,000 in 2022 before reporting any financial instrument gains or losses, determine Dawson’s net income for 2022.

b. Record the journal entry, if any, necessary at December 31, 2022, to record the fair value option for the bonds payable.

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Intermediate Accounting IFRS

ISBN: 9781119607519

4th Edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

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Question Posted: Aug 03, 2021 03:13 AM

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Presented below is selected information related to the financial instruments of Dawson Ltd. at December 31, 2022

Question:

Fair Value Carrying (at December 31) Amount Debt investments (intent is to hold for collection) ¥ 41,000 40,000 Bonds payable 220,000 195,000

Step by Step Answer:

Solution Dawsons net income for 2022 Amount Net income before reporting any financial instrum...View the full answer

Intermediate Accounting IFRS

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