Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help answer the following with workings On 1 June 2018, Happy Ltd purchased 80,000 shares in Green Ltd at a price of $5 each.

image text in transcribed

Please help answer the following with workings

image text in transcribed
On 1 June 2018, Happy Ltd purchased 80,000 shares in Green Ltd at a price of $5 each. The transaction costs for the purchase are $4,000, paid in cash. On 31 May 2020 (Balance Date), the closing market price for a share in Green Ltd is $2. The Investment in Green Ltd is not held for trading. (a) Assuming Happy Ltd measures its share investments at \"fair value through profit or loss", provide thejournal entries to account for the investment in Green Ltd shares as required by NZ IAS 32 and NZ IFRS 9, and disclose the financial asset and related gain or loss on fair value on the financial statements for the year ending 31 May 2019. (8 marks) (b) Assuming Happy Ltd has made the election to account for its share investments at \"fair value through other comprehensive income\

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Statement Analysis

Authors: K. R. Subramanyam, John J. Wild

10th edition

73379433, 73379432, 978-0073379432

More Books

Students also viewed these Accounting questions

Question

How do the two components of this theory work together?

Answered: 1 week ago

Question

Get married, do not wait for me

Answered: 1 week ago

Question

Do not pay him, wait until I come

Answered: 1 week ago

Question

Do not get married, wait until I come, etc.

Answered: 1 week ago