At its year end, 31 March 2019, entity JBK held 60,000 GHS1 shares in a listed entity, X.
The shares were purchased on 11 February 2019 at a price of 85p per share. The market value
of the shares on 31 March 2019 was 93p and the transaction costs associated with the
acquisition were GHS2,000. The investment is categorised as financial asset at fair value
through other comprehensive income.
Requirement
Show the journal entries required in respect of both the initial acquisition and its subsequent
re-measurement on 31 March 2019 and show the relevant extract from the statement of
comprehensive income and the statement of financial position in respect of this investment.
b. JBK disposed of these shares on 16 May 2021 for 96¢ per share.
Requirement
Show the journal entries required to record the de-recognition of this investment and briefly
explain the accounting treatment adopted.
