CIMA F2 Convertible Instruments

Comments

1. robertaz says

   August 29, 2021 at 11:23 am

   F2 question on Convertible Bonds
   If a right to convert to shares is not exercised and bonds are redeemed at maturity date transactions would be:
   CR Cash (for face value paid out)
   DR Liabilities (for full value available after years of amortisation)
   So WHAT HAPPENS to the equity element of the initial recognition that we have sat on SoFP?

   Log in to Reply

2. oportjunik says

   December 26, 2018 at 8:13 pm

   Hello,

   Thank you for the video. In this question we have discount rates given, which is great. Would we be able to answer this question if these discount rates were not calculated for us, ie. can we derive the discount rates by just knowing the coupon rate of 4% and market rate of 8%.

   Thanks

   Log in to Reply

   • oportjunik says

     December 26, 2018 at 8:21 pm

     The question above is a bit silly. Discount rate is calculated using the formula 1/(1+i)^n where i represents interest rate and n number of periods. But at least now I know. 🙂

     Thanks

     Log in to Reply

3. P2-D2 says

   September 6, 2016 at 10:26 pm

   Hi,

   The discounted figure is what we recognise as the liability on initial recognition and so is the opening figure in our financial liability table.

   Thanks

   Log in to Reply

4. carl239 says

   August 15, 2016 at 6:08 am

   Nice video. But I could not understand one thing, the total PV which is the liability $89604 then how come that becomes B/F for year 1 in the next slide. Please explain

   Log in to Reply