Sample Working Paper

Sec. A Sec. B Accrued Gain or Loss

Int. Income
No. of Shares Amount No. of Shares Amount Interest on sale
1,000 1,000,000 2,000 1,500,000

INVESTMENT

Types EQUITY SECURITY DEBT SECURITY

Category/ at FMVTPL at FMVTOCI Invest. In Asso. at FMVTPL at FMVTOCI

Classification

Initial at FMV only at FMV plus Transaction Cost at FMV only at FMV + Transaction Cost
Measurement

Gain or loss FMVTPL and FMVTOCI FMVTOCI/at Amortized Cost:

on Sale G/L = NDP - CV of Investment* G/L = NDP - Unamortized Cost
* fmv based on the latest FS

Investment in Associates:
G/L = NDP - Carrying Value of the Invest. In Asso.*
*Update as of the date of sale the bal. of Invest. in Asso.

Subsequent FMV FMV CV of Invest. In Asso. FMV FMV

Measurement

Val. Allow. Yes Yes No Yes Yes

UH G/L

Impairment Loss of Securities:

For Equity Security under FMV model, there will be NO IMPAIRMENT TO RECOGNIZE regardless whether the change
is judged to be temporary or permanent.

For Amortized Cost, recognize the IMPAIRMENT LOSS.

Recoverable Cost xxx

Less: Carrying Value xxx
Impairment Loss xxx

Problem 1

2010 Trading Security 500,000

Unrealized holding gain - PL 500,000
 Unrealized holding loss - OCI 700,000
Investment at FMVTOCI 700,000

2011 Trading Security 200,000

Unrealized holding gain - PL 200,000

OIC - FMV this year compare it to Cost

PL - FMV this year compare it to FMV last year

2012 Unrealized holding loss - PL 600,000

Trading Security 600,000

FMV this year 4,200,000

Cost 4,000,000
Unrealized holding gain - OCI 200,000

Investment at FMVTOCI 900,000

Unrealized holding loss - OCI 700,000
Unrealized holding gain - OCI 200,000

Problem 2

At FMVTPL at FMVTOCI

1/1/10 - Trading Security 3,649,600 Invest. At FMVTOCI 3,649,600

Cash 3,649,600 Cash

12/31/10 - Trading Sec. 390,400 Int. Recei. Int. Inc. Amort

UHG - PL 390,400
320,000 364,960 44,960
320,000 369,456 49,456

FMV this year 4,040,000

Amortized cost this year 3,694,560
UHG - OCI 345,440

Invest. At FMVTOCI 345,440

UHG - OCI

Invest. At FMVTOCI 44,960

Interest Income
BT SECURITY

at Amortized Cost

FMV + Transaction Cost

ortized Cost:
mortized Cost

Amortized Cost

No

whether the change

 at Amortized Cost

Invest. at Amortized Cost 3,649,600

3,649,600 Cash 3,649,600

CV
3,649,600 1/1/2010
3,694,560 12/31/2010
3,744,016 12/31/2011

345,440

Invest. At Amortized Cost 44,960

44,960 Interest Income 44,960