Question
A loan note with 8% interest was issued on April 2020 at its face value of P40,000,000. Direct cost of the issue was P500,000. The
A loan note with 8% interest was issued on April 2020 at its face value of P40,000,000. Direct cost of the issue was P500,000. The note will be redeemed on March 2023 at a substantial premium. The effective interest rate applicable is 12% per annum. At what amount will the loan appear in the statement of financial position as at March 31, 2021?
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Corporate Financial Accounting
Authors: Carl S Warren, Jeff Jones
16th Edition
0357510380, 978-0357510384
