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Quiz FVTOCI
Quiz FVTOCI
purchased a 3-year bonds with face value of 3,000,000 on January 1, 2018 and with a stated
interest of 11% per year payable every December 31. The bonds were acquired for 103. Commission paid
on the acquisition amounted to 61,878. The effective interest rate of the bond on the initial recognition is
9%. The objective of Unique business model is to collect contractual cash flows and sell financial asset.
The fair value of the investment for every year are the following:
2018 101
2019 98
2020 105
On January 2, 2020, the bonds were sold for 104. The Company incurred transaction cost of 55,000.
Required: