Tan plc owns an available for sale equity investment that cost 2 million At 31 December 2008 the investment was recognised on the balance sheet at 2 1 million At 31 December 2009 the investment had declined in value to 1 5 million however, Tan plc did not assume that the investment had impaired By ...

Impairment of available for sale investments The accounting entries expected are as follows 2009 Dr ...

Tan plc owns an available-for-sale equity investment that cost 2 million. At 31 December 2008 the investment

Question:

Tan plc owns an available-for-sale equity investment that cost £2 million. At 31 December 2008 the investment was recognised on the at £2.1 million.
At 31 December 2009 the investment had declined in value to £1.5 million; however, Tan plc did not assume that the investment had impaired. By 31 December 2010 the investment had not recovered in value (it was still worth £1.5 million) and Tan plc concluded that its decline in value was permanent and it had impaired.
In June 2011 (after the 2010 had been issued) circumstances changed and the investment recovered in value to £2.2 million.
Required:
Show the accounting entries you would expect Tan plc to make for each December year-end from 2009 to 2011.
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...