Example-FV through OCI In 20X5, Palermo purchased the shares through a broker in 20X5 for $1.25 per share. The quoted price at the 20X5 year end was $1.32 per share. At July 20X6 Palermo sold 12,000 shares for $16,800 (their market price at that date). It had The broker charges transaction costs of 1%. Palermo makes the irrevocable election for the changes in fair value of investments in equity instruments not held for trading to be presented in other comprehensive income. Explain how the above transactions should be accounted for in the financial statements for the year ended 31 December 20X6.
Accounting for investments in debt instrument Classification: I. Amortized cost II. Fair value through other comprehensive income; III.Fair value through profit or loss;