Debt Investment, Impairments, IFRS. Use the same information as in problem P16-16 except now assume that Potter Company is an IFRS reporter and carries the debt at fair value through OCI. Also, assume that the present value accurately measures the difference between the carrying value and the expected credit loss. There has not been a significant increase in credit risk during the current year.
a. If impairment exists, what amount of loss will Potter report in net income? What amount of loss will it report in other comprehensive income?
b. What is the journal entry for the impairment loss if needed?
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