>> On 1 January 2020, Vivek plc issued 50,000, 100 2 per cent debentures to investors...
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>> On 1 January 2020, Vivek plc issued 50,000, £100 2 per cent debentures to investors for £55 each. The debentures are redeemable at their par value of £100 in five years' time, 31 December 2024. The interest rate implicit for the debenture is 15.62% per annum. REQUIRED: In accordance with IAS 39 Financial Instruments: Recognition and Measurement calculate the finance cost for Vivek plc in respect of the financial instrument, for each of the five years ended December 2024, and the liability of the financial instrument at the end of each of the year. >> On 1 January 2020, Vivek plc issued 50,000, £100 2 per cent debentures to investors for £55 each. The debentures are redeemable at their par value of £100 in five years' time, 31 December 2024. The interest rate implicit for the debenture is 15.62% per annum. REQUIRED: In accordance with IAS 39 Financial Instruments: Recognition and Measurement calculate the finance cost for Vivek plc in respect of the financial instrument, for each of the five years ended December 2024, and the liability of the financial instrument at the end of each of the year.
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per JAS 39 Debentures are to be amortized cost effective interest method measured at amorised ... View the full answer
Related Book For
Understanding Financial Accounting
ISBN: 978-1118849385
1st Canadian Edition
Authors: Christopher Burnley, Robert Hoskin, Maureen Fizzell, Donald
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