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Wonder Company is experiencing financial difficulties and is negotiating a troubled debt restructuring with your creditors to alleviate your financial stress. Wonder has a P3,000,000
- Wonder Company is experiencing financial difficulties and is negotiating a troubled debt restructuring with your creditors to alleviate your financial stress. Wonder has a P3,000,000 promissory note payable to Megabank. The bank is considering accepting an equity interest in Wonder Company in the form of 200,000 common shares with a fair value of P12 per share. The par value of the common share is P10 per share. Wonder Company incurred total transaction costs of P80,000 related to the share issue.
- What is the amount of the share premium to be reported by Wonder in its statement of financial position as a result of the restructuring applying IFRIC 19?
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Intermediate Accounting Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
13th Canadian Edition
1119740444, 9781119740445
