AP-004-C.1 (Audit of Investments) Problem 1:

You were assigned to audit the ACHIEVEIT Corporations list of securities and other assets that may qualify as investment. In studying the list, you came across a partial list of the accounts and ending account balance taken from the post-closing trial balance of ACHIEVEIT Corporation on December 31, 2017 and shown as follows:

Transactions	Amount
Equity securities of another neither company where neither control nor significant influence exist. The corporation elected to report gains or losses in the profits/losses	P 100,000
Equity securities of another neither company where neither control nor significant influence exist. The corporation elected to report gains or losses in the other comprehensive income/losses	150,000
20% equity securities of another company quoted in an active market	500,000
51% equity securities of another company quoted in an active market	1,400,000
Equity securities of the corporation quoted in an active market reacquired with an intention of reissuance in latter period for short-term profit	500,000
Debt security of another company quoted in an active market. Business model of the corporation has an objective to hold debt securities for short-term profits	100,000
Debt security of another company quoted in an active market. Business model of the corporation has an objective of collecting contractual cash flows from the bonds which are primarily in the form of interests and principal	500,000
Real property held for resale in the ordinary course of business	500,000
Real property held for speculation purposes	700,000
Real property held as a current factory site	1,000,000
Real property of a manufacturing business being leased out to another party under operating lease	900,000
Land held for undetermined future use	800,000
Land held to be used as a future plant site	400,000
Real property being developed as an investment property	300,000

Required:

1. Financial asset at fair value through profit or losses?

1. P0 c) P200,000
2. P100,000 d) P500,000

2. Financial asset at fair value through other comprehensive income?

1. P150,000 c) P200,000
2. P180,000 d) P350,000

3. Investment at amortized cost?

1. P0 c) P600,000
2. P500,000 d) P750,000

4. Investment in associate?

1. P0 c) P600,000
2. P500,000 d) P700,000

5. Investment in subsidiary?

1. P0 c) P1,200,000
2. P1,000,000 d) P1,400,000

6. Investment property?

1. P2,400,000 c) P2,800,000
2. P2,700,000 d) P3,100,000