Page 411 - F2 Integrated Workbook STUDENT 2019

Answers

Example 3.5

Statement of profit or loss and other comprehensive income

$
Other comprehensive income

Gain on FVOCI financial asset 13,800

Statement of financial position

Non-current assets $

Financial assets 110,250

Equity

FVOCI reserve 13,800

Workings - Initial recognition

The financial asset would be classified as FVOCI due to the intention to hold for
the long term.

The transaction costs would be capitalised and added to the financial asset.

$

Initial cost (15,000 × 6.3) 94,500
Transaction costs 1,950

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96,450
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The asset would be initially recognised at an amount of $96,450. Dr FVOCI
financial asset $96,450 Cr Cash $96,450.

Workings continued overleaf

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