Question
Recording Entries for ImpairmentAFS Determine the amount of impairment loss (if any) to record in income under the following three separate scenarios for an AFS
Recording Entries for ImpairmentAFS
Determine the amount of impairment loss (if any) to record in income under the following three separate scenarios for an AFS debt investment. In all three cases, the company does not intend to sell and does not believe it is more likely than not that it will be required to sell the investment before recovery of any unrealized loss. Assume that the company has already adjusted the AFS investments to fair value through OCI.
| Scenario | 1 | 2 | 3 |
|---|---|---|---|
| Fair value | 162,000 | 126,000 | 108,000 |
| Amortized cost | 144,000 | 144,000 | 144,000 |
| Expected credit loss | 27,000 | 27,000 | 27,000 |
| Impairment loss | ??? | ??? | ??? |
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Fraud Examination
Authors: W. Steve Albrecht, Conan C. Albrecht, Chad O. Albrecht, Mark F. Zimbelman
3rd edition
324560842, 978-0324560848
