Face amounts of the bonds 400,000 a.

Held to Collect Principal and Interest

Date of issue of bonds 5/1/2017

Nominal rate 9% PV of Principal

Effective rate 12% PV of interest payments

Semi-annual interest payments June 30 and December 31 Present Value of the bonds
Date of Maturity 12/31/2020
2017
30-Jun Investment in Debt Securities - FAAC
Sale Cash

30-Sep-18 100,000 @103% 30-Jun Cash

Investment in bonds-FAAC
Interest income
Market values at each year end are as follows:
31-Dec Cash
December 31, 2017….. 107 Investments in Debt Securities-FAAC
December 31, 2018….. 105 Interest income

31-Dec Subsequent Measurement:

Remeasurement G/L?

2018
30-Jun Cash
Investment in Debt Securities-FAAC
Interest income

30-Sep Interest receivable

Investment in Debt Securities-FAAC
Interest income

30-Sep Cash
Investment in Debt Securities-FAAC
interest receivable
Gain on sale

31-Dec Cash
Investment in Debt Securities-FAAC
Interest income

31-Dec Subsequent Measurement:

Remeasurement G/L?
ollect Principal and Interest

Pv of 1 400,000*0.6651 266040 Date Principal

PV of
Ordinary 400,000*4.5%*6.209
t payments Annuity 8 100483.2 6/30/2017
e of the bonds 366523.2 12/31/2017
6/30/2018
9/30/2018
n Debt Securities - FAAC 366523.2 9/30/2018 100,000.00
366,523.20 12/31/2018
6/30/2019
18,000 12/31/2019
n bonds-FAAC 3,991.39 6/30/2020
21,991.39 12/31/2020 300,000

18,000.00
in Debt Securities-FAAC 4,230.88
22,231

Measurement: @ amortized cost 374,745

Not Applicable

18,000
n Debt Securities-FAAC 4,484.73
Interest income 22,484.73

9,000
n Debt Securities-FAAC 2,377
11,376.91

112,000
ment in Debt Securities-FAAC 95,401.78
t receivable 9,000.00
7,598.22

6,750.00
n Debt Securities-FAAC 1,836.16
Interest income 8,586.16

Measurement: @ amortized cost 288,041.49

Not Applicable
interest interest
income received Amortization PV

366,523.20
21,991.39 18,000 3,991.39 370,514.59
22,230.88 18,000 4,230.88 374,745.47
22,484.73 18,000 4,484.73 379,230.20
11,376.91 9000 2,376.91 381,607.10
95,401.78 286,205.33
8,586.16 6750 1,836.16 288,041.49
17,282.49 13500 3,782.49 291,823.98
17,509.44 13500 4,009.44 295,833.41
17,666.58 13500 4,166.58 300,000.00
 B. Held to collect and sell FVOCI Mandatory

2017
30-Jun Investment in Debt Securities-FVOCI 366523.2
Cash 366,523.20

30-Jun Cash 18,000

Investment in bonds-FVOCI 3,991.39
Interest income 21,991.39

31-Dec Investment in Debt Securities - FVOCI 53,254.53

Unrealized Gain - OCI 53,254.53

Carrying Amount 374,745.47

Fair Value, Dec 31 (P400K x 107%) 428,000.00
Unrealized Gain - OCI 53,254.53

30-Jun Cash 18,000

2018 Investment in Debt Securities-FVOCI 4,484.73
Interest income 22,484.73

30-Sep Interest receivable 9,000

Investment in Debt Securities-FVOCI 2,377
Interest income 11,376.91

30-Sep Cash 112000

Interest Receivable 9,000.00
Investment in Debt Securities - FVOCI 286,205.33
Cumulative Unrealized Loss - OCI 53,254.53
Gain on Sale - P/L 186,049.21

31-Dec Cash 6750

Investment in Debt Securities-FVOCI 1,836.16
Interest income 8,586.16

Computation of Gain or Loss on Sale:

Proceeds from Sale 428,000.00
Interest receivable 9,000.00
Net Proceeds 419,000.00
Less: CA of Investment 286,205.33
Loss on Sale - P/L 132,794.67 with recycling
Cumulative unrealized Gain - OCI 53,254.53 with recycling
Gain on Sale - P/L 186,049.21
 interest interest
Date Principal income received Amortization PV
6/30/2017 366,523.20
12/31/2017 21,991.39 18,000 3,991.39 370,514.59
6/30/2018 22,230.88 18,000 4,230.88 374,745.47
9/30/2018 22,484.73 18,000 4,484.73 379,230.20
9/30/2018 100,000.00 11,376.91 9000 2,376.91 381,607.10
12/31/2018 95,401.78 286,205.33
6/30/2019 8,586.16 6750 1,836.16 288,041.49
12/31/2019 17,282.49 13500 3,782.49 291,823.98
06/30/2020 17,509.44 13500 4,009.44 295,833.41
12/31/2020 300,000.00 17,666.58 13500 4,166.58 300,000.00
Held for Trading

1-May Investment in Debt Securities - FVPL 366,523.20

Cash 366,523.20

30-Jun Cash 18,000

Interest income 18,000.00

31-Dec Cash 18,000.00

Interest income 18,000

31-Dec Investment in Debt Securities-FVPL 61477

Unrealized Gain-P/L 61,477

Intial Measurement 366523.20

Subsequent Measurement 428000.00
Unrealized Gain-P/L 61476.80

2018

30-Jun Cash 18,000

Interest income 18,000.00

30-Sep Interest receivable 9,000

Interest income 9,000.00

30-Sep Cash 112,000.00

Loss on sale-P/L 325,000.00
Investment in Debt Securities-FVPL 428,000.00
Interest receivable 9,000.00

31-Dec Cash 6,750.00

Interest income 6,750.00

Unrealized Loss-P/L 8000.00

Investment in Debt Securities-FVPL 8000.00

Carrying Amount. December 31, 2017 428000.00 @107%

Subsequent Measurement 420000.00 @105%
Unrealized Loss-P/L (8000.00)
 interest interest
Date Principal income received Amortization
1/1/2017
6/30/2017 21,991.39 18,000 3,991.39
12/31/2017 22,230.88 18,000 4,230.88
6/30/2018 22,484.73 18,000 4,484.73
9/30/2018 100,000.00 11,376.91 9000 2,376.91
9/30/2018 95,401.78
12/31/2018 8,586.16 6750 1,836.16
6/30/2019 17,282.49 13500 3,782.49
12/31/2019 17,509.44 13500 4,009.44
6/30/2020 300,000.00 17,666.58 13500 4,166.58
PV
366,523.20
370,514.59
374,745.47
379,230.20
381,607.10
286,205.33
288,041.49
291,823.98
295,833.41
300,000.00