Incurred loss, expected loss, and impairment
Tyne Corporation owns corporate bonds at December 31, 2020, accounted for using the amortized cost model. These bonds have a par value of $ 864,000 and an amortized cost of $ 851,000. After an impairment review was triggered, Tyne determined that the discounted impaired cash flows are $ 796,500 using the current market rate of interest, but are $ 793,000 using the market rate when the bonds were first acquired. The company follows a policy of directly reducing the carrying amount of any impaired assets.
Instructions
a) Assuming Tyne Corporation is a private enterprise that applies ASPE, prepare any necessary journal entry(ies) related to the impairment at December 31, 2020.
b) Assuming Tyne Corporation is a private enterprise that applies ASPE, prepare any necessary journal entry(ies) related to a December 31, 2021, fair value of $ 821,000 and an adjusted carrying amount at that date of $ 801,000.
c) Assuming Tyne applies IFRS and has adopted IFRS 9, prepare any necessary journal entry related to the impairment at December 31, 2020.
d) Assuming Tyne applies IFRS and has adopted IFRS 9, prepare any necessary journal entry(ies) related to a December 31, 2021 fair value of $ 821,000 and an adjusted carrying amount at that date of $ 801,000.

Question

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The Answer of Incurred loss, expected loss, and impairment
Tyne Corporation owns corporate bonds at December 31, 2020, accounted for using the amortized cost model. These bonds have a par value of $ 864,000 and an amortized cost of $ 851,000. After an impairment review was triggered, Tyne determined that the discounted impaired cash flows are $ 796,500 using the current market rate of interest, but are $ 793,000 using the market rate when the bonds were first acquired. The company follows a policy of directly reducing the carrying amount of any impaired assets.
Instructions
a) Assuming Tyne Corporation is a private enterprise that applies ASPE, prepare any necessary journal entry(ies) related to the impairment at December 31, 2020.
b) Assuming Tyne Corporation is a private enterprise that applies ASPE, prepare any necessary journal entry(ies) related to a December 31, 2021, fair value of $ 821,000 and an adjusted carrying amount at that date of $ 801,000.
c) Assuming Tyne applies IFRS and has adopted IFRS 9, prepare any necessary journal entry related to the impairment at December 31, 2020.
d) Assuming Tyne applies IFRS and has adopted IFRS 9, prepare any necessary journal entry(ies) related to a December 31, 2021 fair value of $ 821,000 and an adjusted carrying amount at that date of $ 801,000.

Incurred Loss, Expected Loss, and Impairment