On January 1, 2014, the company issued $10,000,000 of 5 percent bonds at par value that mature in five years on December 31, 2018. Costs incurred in issuing the bonds were $500,000. Interest is paid on the bonds annually.

Prepare a reconciliation schedule to reconcile 2015 net income and December 31, 2015, stockholders' equity from a U.S. GAAP basis to IFRS. Ignore income taxes. Prepare a note to explain each adjustment made in the reconciliation schedule.

Is the following the correct answer?

Reconciliation from U.S. GAAP to IFRS

Income under U.S. GAAP XXXXX

Interest expense on bonds payable = $100000* 6.1932% $6,193.23

Stockholders' equity under U.S. GAAP

Interest expense on bonds payable $17,859

Bonds Payable: In 2014 and 2015 we would recognize $600000 as an expense pertaining to bonds payable, as well as $500000 in interest expense, $500000/5 = $100,000 bond issuance expense with GAAP. IFRS, the bond issuance costs reduce the carrying amount of the bonds to $9,500,000, and the effective interest rate is determined to be 6.194%

Coupon Payment = $10,000,000 x 5% $500,000

Face Value $10,000,000

Less: Insuance Cost $500,000

Present Value $9,500,000

Nper 5

Rate = (rate(5,500000-9500000,10000000) 6.1932%

IF SO, I NEED SOMETONE TO SHOW HOW YOU GET THE 6.1932%

IF THAT'S THE WRONG ANSWER, AND YOU COME UP WITH A DIFFERENT PERCENTAGE, PLEASE SHOW THAT