Question 4 :

On 30 June 2022, Best Ltd purchased 5,000 corporate bonds in South Ltd at $10.00 per bond. On acquisition, Cool Ltd classified this investment in financial assets as being measured at fair value through other comprehensive income

• At 30 June 2023, the fair value of the corporate bonds had increased to $14.00.
• At 30 June 2024, the fair value of the corporate bonds had decreased to $13.00.
• All of the corporate bonds were sold on 30 June 2024.
• At 30 June 2022, the only equity item was paidup capital of $100,000. And this has not changed.
• The applicable tax rate is 30 per cent.

REQUIRED

Prepare an extract of the statement of profit or loss and other comprehensive income for the reporting period ending 30 June 2024, in which the reclassification adjustment for financial assets measured at fair value through other comprehensive income is detailed.