STATEMENT
STATEMENT OF
OF
INITIAL
SUBSEQUENT
COMPREHENSIVE
CLASSIFICATION COMPOSITION
FINANCIAL MEASUREMENT MEASUREMENT INCOME
POSITION
recognized in P/L
Equity & Debt
Current Asset
FV
FV
1. FVPL
OCI to retained
Current or
earnings (without
FV+ Transaction
2. FVOCI (Election)
Equity
noncurrent
FV
recycling)
cost
asset
Dividends in P/L
OCI (with recycling)
3. FVOCI
(Mandatory)
4. FAAC
Debt
Debt
Current or
noncurrent
asset
Current or
noncurrent
asset
Transferred to P/L
upon derecognition
FV+ Transaction
cost
FV
FV+ Transaction
cost
Amortized cost less
impairment
allowance
Interest income and
impairment gains and
losses to P/L
Interest income and
impairment gains and
losses to P/L
CHAPTER 15: INVESTMENTS
U/L-PL is recognized @ P/L as other expense.
U/L-OCI is a real account, thus balance must be “0” before U/G is recognized, hence it is offset against U/G.
Retained earnings_FVOCI (ELECTION)-Cumulative Unrealized G/L and Gain/Loss on sale is recognized directly
@ R/E.
Normal Balances
Unrealized
Unrealized Gain
loss
Gain on Sale
Loss on Sale
Retained
Earnings
CHAPTER 16: Dividends
TYPES
Measurement
Date of
declaration
Date of record
Date of Payment
Recognized @
Revenue Account
Cash Dividivdends
Amount of cash
received
Dr. Dividend
Receivable Cr,
Divident Income
NO ENTRY
Dr. Cash
Cr. Dividend
Receivable
P/L
Dividend income
Property Dividends
Liquidating
Dividends
FV @ Declaration
Dr. Dividend Receivable
Cr. Divident Income
NO ENTRY
Dr. Asset
Cr. Dividend Receivable
Dr. Cash /asset
Cr. Investment
in shares
P/L
Dividend income
Return of
Investment (+
to investment
acc.)
TYPES
Measurement
Date of
declaration
Date of record
Date of Payment
Revenue Account
Share Dividends
(FVPL/OCI)
FV upon receipt
NO ENTRY
NO ENTRY
Dr. FA-FVPL/OCI
Cr. Unrealized Gain
U/G
Share Dividents @cost
MEMO ENTRY:
Received 2k shares as
20% share dividend.
Shares now held, 12k.
(same class)
CHAPTER 17: INVESTMENT IN ASSOCIATE
FV > CA: Undervalued, excess of cost over CA
FV< CA: Overvalued
Cost is allocated in
proportion of their
FV (OS/PS)
Dr. FA-FPL-OS
Cr. FA-FVPL-PS
(amount is the
alloc.cost of the
new shares)
0
