Some members of the board of directors of a company deliberating over a possible source of new

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Some members of the board of directors of a company deliberating over a possible source of new capital believe that irredeemable debentures carrying a fixed annual coupon rate would suffice. They also believe that the going concern concept of the financial statements would obviate the need to include the debt thereon: the entity is a going concern and there is no intention to repay the debt; therefore disclosure is unwarranted. Discuss.

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Financial Accounting And Reporting

ISBN: 9780273730040

13th Edition

Authors: Barry Elliott, Jamie Elliott

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