NOTES

PL
EQUITY < 20% FV OCI 1M 20%
20-50% Significant Influence Equity Method 0.10%
>50% Advanced FAR
Investment in Associate Jam, Capital
100,000 10,000 10,000 100,000 initial
500000 40,000 40,000 net profit

DEBT FV
AC

Cash 16,000 Jan 1, 2019 Jan 10, 2019

Equity Investment 15,000 Jan 16, 2019 P160
Dividend Revenue 1,000 Jan 31, 2019

Equity Investment 15,000

Dividend Receivable 1,000 Jam 10% 1M 100,000
Cash 16,000 Aldo 10% 2M 100,000
Alvin 20% 200,000
Jilyn 30% 300,000
Steph 10% 100,000
Ruth 10% 100,000
Kate 10% 100,000
Cash 1,000 100% 1,000,000
Dividend Receivable 1,000

10
7-14

YEAR 1
Equity Investment FVOCI 900,000
Cash 900,000 1000000 300000 30%
1100000 330000 30%
Cash 200,000
Dividend Revenue 200,000

Equity Investment FVOCI 480,000

Unrealized G/L on E/I FVOCI 480,000

YEAR 2
Investment in Associate 1,380,000
Equity Investment FVOCI 1,380,000

Investment in Associate 2,600,000

Cash 2,600,000

Unrealized G/L on E/I FVOCI 480,000

Retained Earnings 480,000

Cash 900,000
Investment in Associate 900,000

Investment in Associate 1,950,000

Share in Profit of Associate 1,950,000

Investment in Associate
1,380,000 900,000
2,600,000
1,950,000
5,930,000 900,000
5,030,000 1,200,000
2,400,000
1,430,000 1,570,000
430,000 1,570,000
7-15

YEAR 1
Investment in Associate 8,250,000
Cash 8,250,000

Cash 210,000
Investment in Associate 210,000

Investment in Associate 170,000

Share in Profit of Associate 170,000

YEAR 2
Cash 240,000
Investment in Associate 240,000 Investment in Associate
8,250,000 210,000 165.00
Investment in Associate 250,000 170,000
Share in Profit of Associate 250,000 8,420,000 210,000
8,210,000
250,000 240,000
YEAR 3 8,460,000 240,000
Cash 3,500,000 8,220,000 164.40
Investment in Associate 3,288,000 3,288,000 175.00
Gain on Sale of Investment in Associate 212,000 4,932,000 10.60

Equity Investment FVOCI 5,250,000

Investment in Associate 4,932,000 8,750,000
Gain from Investment 318,000 530,000

Cash 120,000 Equity Investment FVOCI

Dividend Revenue 120,000 5,250,000
450,000
Equity Investment FVOCI 450,000 5,700,000
Unrealized G/L on E/I FVOCI 450,000
YEAR 2 65
Equity Investment FVPL 1,770,000 59 Equity Investment FVPL Equity Investment FVOCI 1,800,000 60 Equity Investment FVOCI
Commission Expense 30,000 6 1,770,000 1,800,000
Cash 1,800,000 180,000 Cash 1,800,000 150,000
1,950,000 812,500 Equity Investment FVOCI 150,000 65 1,950,000 -
Equity Investment FVPL 180,000 1,137,500 Unrealized G/L on E/I FVOCI 150,000 570,000 1,050,000
Unrealized G/L on E/I FVPL 180,000 374,500 2,520,000
1,512,000 1,470,000
Memo: Received 6,000 ordinary shares of NPA Company representing 20% bonus issue on 30,000 shares previously held. 42,000
Equity Investment FVOCI 570,000 1,512,000
Cash 1,050,000 Unrealized G/L on E/I FVOCI 570,000
Equity Investment FVPL 812,500
Gain on Sale of E/I FVPL 237,500 Cash 1,050,000
Equity Investment FVOCI 1,050,000
Equity Investment FVPL 374,500
Unrealized G/L on E/I FVPL 374,500 Equity Investment FVOCI 42,000
Unrealized G/L on E/I FVOCI 42,000
7-4
 Cash Interest Revenue
stated real/market 4M
FVPL FVOCI AMORTIZED COST Date Nominal Effective Amortization Carrying Value
8% 10% 3,691,500 4,000,000 0.6139 2,455,600
YEAR 1 Dec 1, Y1 160,000 184,575 24,575 3,716,075 4,301 160,000 7.7217 1,235,472
June 1 Debt Investment FVPL 3,691,500 Debt Investment FVOCI 3,691,500 Debt Investment AC 3,691,500 June 1, Y2 160,000 185,804 25,804 3,741,879 3,720,376 3,691,072
Cash 3,691,500 Cash 3,691,500 Cash 3,691,500 Dec 1, Y2 160,000 187,094 27,094 3,768,973 4,741.44
June 1, Y3 160,000 188,449 28,449 3,797,421 3,773,714
Dec 1 Cash 160,000 Cash 160,000 Cash 160,000 Dec 1, Y3 160,000 189,871 29,871 3,827,292 5,227 3,832,520
Interest Revenue 160,000 Debt Investment FVOCI 24,575 Debt Investment AC 24,575 June 1, Y4 160,000 191,365 31,365 3,858,657 27,444 1) Initial recognition of D/I
Interest Revenue 184,575 Interest Revenue 184,575 Dec 1, Y4 160,000 192,933 32,933 3,891,590 3,886,101 2) Interest received - semi or annually
June 1, Y5 160,000 194,579 34,579 3,926,169 3) Prepare adjustments at yearend - interest + FV
Dec 31 Interest Receivable 26,667 Interest Receivable 26,667 Interest Receivable 26,667 Dec 1, Y5 160,000 196,308 36,308 3,962,478 4) Sell the D/I or Collect the Principal
Interest Revenue 26,667 Debt Investment FVOCI 4,301 Debt Investment AC 4,301
Interest Revenue 30,967 Interest Revenue 30,967 4,000,000
3,880,000 3,880,000 Debt Investment FVOCI
3,691,500
Dec 31 Debt Investment FVPL 188,500 FV Adjustment - D/I 159,624 24,575
Unrealized G/L on D/I FVPL 188,500 Unrealized G/L on D/I FVOCI 159,624 4,301 110 % interest-bearing note
3,720,376 101 %
YEAR 2 159,624 85 %
June 1 Cash 160,000 Cash 160,000 Cash 160,000 3,880,000
Interest Revenue 133,333 Debt Investment FVOCI 21,503 Debt Investment AC 21,503
Interest Receivable 26,667 Interest Revenue 154,836 Interest Revenue 154,836 3,720,376
Interest Receivable 26,667 Interest Receivable 26,667 21,503
27,094 FV Adjustment - D/I Unrealized G/L on D/I FVOCI
Dec 1 Cash 160,000 Cash 160,000 Cash 160,000 4,741 Year 1 159,624 159,624
Interest Revenue 160,000 Debt Investment FVOCI 27,094 Debt Investment AC 27,094 3,773,714 26,661 26,661
Interest Revenue 187,094 Interest Revenue 187,094 186,286 Year 2 186,286 98,806 98,806
3,960,000 Year 3 87,480 - 186,286
Dec 31 Interest Receivable 26,667 Interest Receivable 26,667 Interest Receivable 26,667 181,915 87,480
Interest Revenue 26,667 Debt Investment FVOCI 4,741 Debt Investment AC 4,741 3,773,714 94,434 Upon Sale 181,915
Interest Revenue 31,408 Interest Revenue 31,408 23,707
3,880,000 29,871 94,434 -
3,960,000 5,227
Dec 31 Debt Investment FVPL 80,000 FV Adjustment - D/I 26,661 3,832,520
Unrealized G/L on D/I FVPL 80,000 Unrealized G/L on D/I FVOCI 26,661 87,480
3,920,000
YEAR 3 3,832,520
June 1 Cash 160,000 Cash 160,000 Cash 160,000 26,137
Interest Revenue 133,333 Debt Investment FVOCI 23,707 Debt Investment AC 23,707 27,444
Interest Receivable 26,667 Interest Revenue 157,041 Interest Revenue 157,041 CV 3,886,101
Interest Receivable 26,667 Interest Receivable 26,667 SP 3,791,667
Loss 94,434
Dec 1 Cash 160,000 Cash 160,000 Cash 160,000
Interest Revenue 160,000 Debt Investment FVOCI 29,871 Debt Investment AC 29,871
Interest Revenue 189,871 Interest Revenue 189,871
Dec 31 Interest Receivable 26,667 Interest Receivable 26,667 Interest Receivable 26,667
Interest Revenue 26,667 Debt Investment FVOCI 5,227 Debt Investment AC 5,227
Interest Revenue 31,894 Interest Revenue 31,894
3,960,000
3,920,000
Dec 31 Unrealized G/L on D/I FVPL 40,000 Unrealized G/L on D/I FVOCI 98,806
Debt Investment FVPL 40,000 FV Adjustment - D/I 98,806
YEAR 4
June 1 Cash 160,000 Cash 160,000 Cash 160,000
Interest Revenue 133,333 Debt Investment FVOCI 26,137 Debt Investment AC 26,137
Interest Receivable 26,667 Interest Revenue 159,471 Interest Revenue 159,471
Interest Receivable 26,667 Interest Receivable 26,667
Nov 1 Interest Receivable 133,333 Interest Receivable 133,333 Interest Receivable 133,333
Interest Revenue 133,333 Debt Investment FVOCI 27,444 Debt Investment AC 27,444
Interest Revenue 160,777 Interest Revenue 160,777
Nov 1 Cash 3,925,000
Loss on Sale of D/I FVPL 128,333 Unrealized G/L on D/I FVOCI 181,915 Cash 3,925,000
Debt Investment FVPL 3,920,000 FV Adjustment - D/I 181,915 Loss on Sale of D/I AC 94,434
Interest Receivable 133,333 Debt Investment AC 3,886,101
Cash 3,925,000 Interest Receivable 133,333
FV Adjustment - D/I 94,434
SP 3,791,667 Debt Investment FVOCI 3,886,101
CV 3,920,000 Interest Receivable 133,333
Loss (128,333)
Loss on Sale of D/I FVOCI 94,434
Unrealized G/L on D/I FVOCI 94,434
Cash 3,925,000 Cash 3,925,000
Loss on Sale of D/I FVOCI 94,434 Loss on Sale of D/I AC 94,434
Debt Investment FVOCI 3,886,101 Debt Investment AC 3,886,101
Interest Receivable 133,333 Interest Receivable 133,333
7-18 Unrealized G/L on D/I FVOCI 87,480
FV Adjustment - D/I 87,480
 Cash Interest Revenue 1,000,000
FVPL FVOCI AMORTIZED COST Date Nominal Effective Amortization Carrying Value
12% 10% 1,063,394
YEAR 1 Dec 31, Y1 120,000 106,339 13,661 1,049,733 1,080,000 30,267
Jan 1 Debt Investment FVPL 1,063,394 Debt Investment FVOCI 1,063,394 Debt Investment AC 1,063,394 Dec 31, Y2 120,000 104,973 15,027 1,034,707 1,060,000 25,293
Cash 1,063,394 Cash 1,063,394 Cash 1,063,394 Dec 31, Y3 120,000 103,471 16,529 1,018,177 620,824
Dec 31, Y4 120,000 101,823 18,177 1,000,000 (2,479)
Dec 31 Cash 120,000 Cash 120,000 Cash 120,000 618,345 CV
Interest Revenue 120,000 Debt Investment FVOCI 13,661 Debt Investment AC 13,661 606,000 SP
Interest Revenue 106,339 Interest Revenue 106,339 (12,345)
1,080,000 Debt Investment FVOCI
1,063,394 13,661
Dec 31 Debt Investment FVPL 16,606 FV Adjustment - D/I 30,267
Unrealized G/L on D/I FVPL 16,606 Unrealized G/L on D/I FVOCI 30,267 110 % interest-bearing note
1,049,733 101 %
YEAR 2 (1,049,733) 85 %
Dec 31 Cash 120,000 Cash 120,000 Cash 120,000
Interest Revenue 120,000 Debt Investment FVOCI 15,027 Debt Investment AC 15,027
Interest Revenue 104,973 Interest Revenue 104,973
1,080,000
1,060,000 FV Adjustment - D/I
Dec 31 Unrealized G/L on D/I FVPL 20,000 Unrealized G/L on D/I FVOCI 4,973 #REF! Year 1 30,267 30,267
Debt Investment FVPL 20,000 FV Adjustment - D/I 4,973 #REF! 4,973 -
#REF! Year 2 25,293 15,176
YEAR 3 #REF! 10,117
1,388
Apr 1 Interest Receivable 18,000 Interest Receivable 18,000 Interest Receivable 18,000 Year 3 8,729
Interest Revenue 18,000 Debt Investment FVOCI 2,479 Debt Investment AC 2,479
Interest Revenue 15,521 Interest Revenue 15,521
Apr 1 Cash 624,000 Cash Interest Revenue 400,000
Loss on Sale of D/I FVPL 30,000 Cash 624,000 Cash 624,000 Date Nominal Effective Amortization Carrying Value
Debt Investment FVPL 636,000 Loss on Sale of D/I FVOCI 12,345 Loss on Sale of D/I AC 12,345 12% 10% 1,063,394
Interest Receivable 18,000 Debt Investment FVOCI 618,345 Debt Investment AC 618,345 Dec 31, Y1 120,000 106,339 13,661 1,049,733
Interest Receivable 18,000 Interest Receivable 18,000 Dec 31, Y2 120,000 104,973 15,027 1,034,707
SP 606,000 Unrealized G/L on D/I FVOCI 15,176 413,883
CV 636,000 FV Adjustment - D/I 15,176 Dec 31, Y3 48,000 41,388 6,612 407,271 416,000 8,729
Loss (30,000) Dec 31, Y4 48,000 40,729 7,271 400,000
Dec 31 Cash 48,000 Cash 48,000 Cash 48,000
Interest Revenue 48,000 Debt Investment FVOCI 6,612 Debt Investment AC 6,612
Interest Revenue 41,388 Interest Revenue 41,388 1) Initial recognition of D/I
424,000 2) Interest received - semi or annually
416,000 56,909
Dec 31 Unrealized G/L on D/I FVPL 8,000 Unrealized G/L on D/I FVOCI 1,388
Debt Investment FVPL 8,000 FV Adjustment - D/I 1,388
YEAR 4
Dec 31 Cash 48,000 Cash 48,000 Cash 48,000
Interest Revenue 48,000 Debt Investment FVOCI 7,271 Debt Investment AC 7,271
Interest Revenue 40,729 Interest Revenue 40,729
Cash 400,000 Cash 400,000 Cash 400,000
Debt Investment FVPL 400,000 Debt Investment FVOCI 400,000 Debt Investment AC 400,000
7-19