On 1 January 2017, after discussions with your firm, Mirror Limited (Mirror) issued 9,000,000 6% debentures of
Question:
On 1 January 2017, after discussions with your firm, Mirror Limited (“Mirror”) issued 9,000,000 6% debentures of €1 each at an issue price of 95 cent for every €1 debenture.
The direct costs associated with the issue amounted to €76,400. Mirror will redeem the debentures on 31 December 2020 at a premium of 10 cent for every €1 debenture purchased.
The effective rate of interest on the debenture issue ts 10%.
Requirement With respect to the debenture issue, calculate the interest to be charged in the statement of profit or loss and other comprehensive income of Mirror for each of the four years ending 31 December 2017 to 2019 and the amount to be shown in the statement of financial position at each of the above reporting dates.
Step by Step Answer:
International Financial Accounting And Reporting
ISBN: 9781912350025
6th Edition
Authors: Ciaran Connolly