1. On July 16, 2021, Agony Company classified a non-current asset as held for sale in accordance with IFRS 5. At that date, the assets carrying amount was P45,000 its fair value was estimated at P33,000 and the costs to sell at P4,500. On October 20, 2021, the asset was sold for net proceeds of P27,600. If Agony Company accounts for non-current assets using the cost model, what amount should be included as impairment loss and loss on disposal, respectively, in Agony Companys statement of comprehensive income for the year ended December 31, 2021?

a.) What amount should be included as impairment loss in Agony Companys statement of comprehensive income for the year ended December 31, 2021?

b.) What amount should be included as loss on disposal in Agony Companys statement of comprehensive income for the year ended December 31, 2021?

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2. On January 1, 2019, Budma Company acquired machinery worth P6,000,000 with a 10-year useful life and no residual value. The entity elected to use the cost model. On December 31, 2020, Budma decided to sell the asset and classified it as held for sale. The fair value less cost of disposal on such date is P4,100,000. On December 31, 2021, Budma decided to classify the asset back into property, plant and equipment since there were no buyers for the asset. On this date, the fair value less cost of disposal is P3,700,000 and the value in use is P4,000,000.

a.) What amount of impairment loss should be recognized for 2020?

b.) What amount of gain or loss on reclassification should be recognized for 2021? (use negative sign if loss)

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3. Cristel Company purchased equipment for P800,000 on January 1, 2023 with a useful life of 10 years and no residual value. On December 31, 2024, the entity classified the equipment as held for sale. The fair value of the equipment on December 31, 2024 was P600,000 and the cost of disposal P20,000.

On December 31, 2025, the entity believed that the criteria for classification as held for sale can no longer be met. On such date, the fair value of the equipment was P500,000 and the cost of disposal was P10,000. The value in use was determined to be P550,000. Accordingly, the entity decided not to sell the asset but to continue to use it.

a.) What is the impairment loss to be recognized on December 31, 2024?

b.) What amount should be recognized in profit or loss as a result of the reclassification in 2025? (use negative sign if loss)