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DUPO Berhad purchase 500,000 unit shares of 7TWELVE Berhad, a listed company on Bursa Malaysia at RM2.80 each with 1 percent brokerage fees on 5
DUPO Berhad purchase 500,000 unit shares of 7TWELVE Berhad, a listed company on Bursa Malaysia at RM2.80 each with 1 percent brokerage fees on 5 July 2019. The shares are less than 1 percent of shares issued by 7TWELVE. As at 31 December 2019, the price of the share is RM3.00 each unit.
Required:
- Show the journal entry on 5 July 2019 and 31 December 2019 using:
- fair value through profit or loss method.
(5 marks)
- fair value through other comprehensive income.
(4 marks)
- Discuss the concept and accounting treatment of convertible financial assets.
(6 marks)
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