Ayayai Corp., a December 31 year-end company that applies IFRS, acquired an investment of 900 shares of Credence Corp. in mid-2013 for $26,850. Between significant volatility in the markets and in the business prospects of Credence Corp., the accounting for this investment presented a challenge to Ayayai. Toward the end of 2017, Credence discontinued the small annual dividend of $0.50 per share that it had been paying and announced that a major patent responsible for 50% of its income had lost most of its value due to a technological improvement by a competitor. Situation 1: Credence Corp. is a publicly traded company on the Toronto Stock Exchange, and Ayayai has opted to account for its investment at FV-NI. By the end of 2016, the price of Credence shares had fallen to $26.50 per share from $29 the previous year, and by the end of 2017 they were trading at $11.10. Situation 2: Credence Corp. is a private enterprise owned by a group of 20 investors and is a supplier of materials to Ayayai. Ayayai purchased the shares to cement the relationship between the two companies and has opted to account for its investment at FV-OCI. In late 2016, Ayayai was beginning to worry about its investment and determined that its value had probably fallen marginally to an estimated fair value of approximately $23,000 from $24,000 the previous year. In 2017, Ayayai was more concerned and, at year end, carried out a thorough analysis of the present value of the likely cash flows to be derived from this investment and estimated an amount of $11,200. Ayayai Corp. adjusts the carrying amount of its investments directly when recognizing an impairment loss, and each type of investment income is accounted for and reported separately

Assuming Ayayai applies IFRS 9, prepare the appropriate journal entries at December 31, 2016, and December 31, 2017, under situation 1. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Assuming Ayayai applies IFRS 9, prepare the appropriate journal entries at December 31, 2016, and December 31, 2017, under situation 2. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

If Ayayai is a private company that applies ASPE, prepare the appropriate journal entries at December 31, 2016, and December 31, 2017, under situation 1. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

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Date Dec. 31, 2016 Dec. 31, 2017 Account Titles and Explanat Debi Cred ion t it Date Dec. 31, 2016 Dec. 31, 2017 Account Titles and Explanat Debi Cred ion t it Date Dec. 31, 2016 Dec. 31, 2017 Account Titles and Explanat Debi Cred ion t it Date Dec. 31, 2016 Dec. 31, 2017 Account Titles and Explanat Debi Cred ion t it Date Dec. 31, 2016 Dec. 31, 2017 Account Titles and Explanat Debi Cred ion t it Date Dec. 31, 2016 Dec. 31, 2017 Account Titles and Explanat Debi Cred ion t it

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Situation 1 Date Account title Explanation Debit Credit Dec 31 2016 Unrealised Gainlosses in NI 2250 ... View the full answer