FVTPL and FVTOCI (Entries)

Question 1

Initial FVTPL (Investment)

Answer 1

Debit: Investment
Credit: Bank

Question 2

Initial FVTPL (Transaction)

Answer 2

Debit: Transaction costs
Credit: Bank

Question 3

Subsequent FVTPL gain/loss? (Loss Calculation)

Answer 3

Initial - subsequent = Expense

Question 4

Gain/loss FVTPL accounting entry? (Loss)

Answer 4

Debit: Expense (SOPL)
Credit: Investment (SOFP)

Question 5

Initial FVTOCI (Investment)

Answer 5

Investment + transaction costs

Debit: Investment + transaction costs
Credit: Bank

Question 6

Subsequent FVTOCI gain/loss calculation? (Gain Calculation)

Answer 6

Fair value - initial cost

Question 7

Subsequent FVTOCI gain/loss double entry? (Gain)

Answer 7

Debit: Investment (gain/loss value)
Credit: OCI