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    AP 004 D.1 Audit If Investments Prob. 1

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    Loid Gumera Lenchico
    1) Items 1, 5, and 6 represent financial assets at fair value through profit or losses with a total value of P100,000 + P500,000 + P100,000 = P700,000. 2) Item 2 represents a financial asset at fair value through other comprehensive income with a value of P150,000. 3) Item 7 represents an investment at amortized cost with a value of P500,000.

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    AP 004 D.1 Audit If Investments Prob. 1

    Uploaded by

    Loid Gumera Lenchico
    127 views1 page
    1) Items 1, 5, and 6 represent financial assets at fair value through profit or losses with a total value of P100,000 + P500,000 + P100,000 = P700,000. 2) Item 2 represents a financial asset at fair value through other comprehensive income with a value of P150,000. 3) Item 7 represents an investment at amortized cost with a value of P500,000.

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    AP 004 D.1 Audit if Investments Prob. 1 (1)

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    1) Items 1, 5, and 6 represent financial assets at fair value through profit or losses with a total value of P100,000 + P500,000 + P100,000 = P700,000. 2) Item 2 represents a financial asset at fair value through other comprehensive income with a value of P150,000. 3) Item 7 represents an investment at amortized cost with a value of P500,000.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    127 views1 page

    AP 004 D.1 Audit If Investments Prob. 1

    Uploaded by

    Loid Gumera Lenchico
    1) Items 1, 5, and 6 represent financial assets at fair value through profit or losses with a total value of P100,000 + P500,000 + P100,000 = P700,000. 2) Item 2 represents a financial asset at fair value through other comprehensive income with a value of P150,000. 3) Item 7 represents an investment at amortized cost with a value of P500,000.

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    AP-004-C.

    1 (Audit of Investments) Problem 1:


    You were assigned to audit the ACHIEVEIT Corporation’s list of securities and other assets that may qualify as investment. In
    studying the list, you came across a partial list of the accounts and ending account balance taken from the post-closing trial balance
    of ACHIEVEIT Corporation on December 31, 2017 and shown as follows:
    Transactions Amount
    1) Equity securities of another neither company where neither control nor significant
    influence exist. The corporation elected to report gains or losses in the
    profits/losses P 100,000
    2) Equity securities of another neither company where neither control nor significant
    influence exist. The corporation elected to report gains or losses in the other
    comprehensive income/losses 150,000
    3) 20% equity securities of another company quoted in an active market 500,000
    4) 51% equity securities of another company quoted in an active market 1,400,000
    5) Equity securities of the corporation quoted in an active market reacquired with an
    intention of reissuance in latter period for short-term profit
    500,000
    6) Debt security of another company quoted in an active market. Business model of
    the corporation has an objective to hold debt securities for short-term profits
    100,000
    7) Debt security of another company quoted in an active market. Business model of
    the corporation has an objective of collecting contractual cash flows from the
    bonds which are primarily in the form of interests and principal
    500,000
    8) Real property held for resale in the ordinary course of business 500,000
    9) Real property held for speculation purposes 700,000
    10) Real property held as a current factory site 1,000,000
    11) Real property of a manufacturing business being leased out to another party under
    operating lease 900,000
    12) Land held for undetermined future use 800,000
    13) Land held to be used as a future plant site 400,000
    14) Real property being developed as an investment property 300,000

    Required:
    1) Financial asset at fair value through profit or losses?
    a) P0 c) P200,000
    b) P100,000 d) P500,000
    2) Financial asset at fair value through other comprehensive income?
    a) P150,000 c) P200,000
    b) P180,000 d) P350,000
    3) Investment at amortized cost?
    a) P0 c) P600,000
    b) P500,000 d) P750,000
    4) Investment in associate?
    a) P0 c) P600,000
    b) P500,000 d) P700,000
    5) Investment in subsidiary?
    a) P0 c) P1,200,000
    b) P1,000,000 d) P1,400,000
    6) Investment property?
    a) P2,400,000 c) P2,800,000
    b) P2,700,000 d) P3,100,000

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