Advise the directors of the entity, Financial Accounting

An entity had the following transactions during the year ended 31 December 2010:

  • The entity invested in a convertible bond on its issue date. The bond matures four years after the issue date and at that date the bond can be converted into ordinary shares of the investee or repaid at par. The entity's plan for the bond is to hold it until it matures and collect the cash flows.
  • The entity entered into a contractual commitment to make a variable rate loan to a customer beginning on 1 January 2011 for a fixed period at 1% less than the rate at which the entity (not the customer) can borrow money.
  • The entity sold to a third party the right to receive the interest cash flows on a fixed maturity debt instrument it holds and will continue to legally own up to the date of maturity. The debt instrument is quoted in an active stock market. The entity has no obligation to compensate the third party for any cash flows not received.

Advise the directors of the entity of the accounting treatment of the above transactions under IFRS 9 (insofar as the information permits) for the year ended 31 December 2010.

Posted Date: 3/15/2013 3:07:11 AM | Location : United States







Related Discussions:- Advise the directors of the entity, Assignment Help, Ask Question on Advise the directors of the entity, Get Answer, Expert's Help, Advise the directors of the entity Discussions

Write discussion on Advise the directors of the entity
Your posts are moderated
Related Questions
Q. Principles of banking and finance? An introduction to the principles of banking and finance. It covers a broad variety of topics using an economic perspective and aims to gi

Subsidiary company exclusion features 1) The standard does not require consolidation of a subsidiary acquired when there is evidence that the control is intended to be temporar

ACCOUNTANCY PRINCIPLES (GAAP - GENERALLY ACCEPTED ACCOUNTING PRINCIPLES) Accounting values, rules of conduct and action are explained by a variety of terms for instance convent

Fakari had the following asset at the ending of the year 2013 having started the business at the beginning of the same year. Ksh.000 Account payable 15,800 equipment 46,000

The managers of Merton Medical Clinic are analyzing a proposed project. The project's most likely NPV is $120,000, but, as evidenced by the following NPV distribution, there is con

Inventories constitute a important portion of the current assets ranging from 40 percent to 60 percent for manufacturing companies. The manufacturing companies conduct investments

what is the different between prorfit and margin prorfi

Assignments with the answer for tafe sa 4 edition. Question 11, page 76 and question 39, page 89

How do I compute the selling price of a callable bond? I have the bond selling price if it isn''t callable, but I don''t know how the callable feature impacts the price.

Consider the expected return and standard deviation of the following two assets: Asset 1: E[r1]=0.1 und σ1=0.3 Asset 2: E[r2]=0.2 und σ2=0.4 (a) Draw (e.g. with Excel) the