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- March 3, 2019 at 2:25 am #507232
my understanding is duration is to measure the average time to recover the present value of the project.
But right now, the ans shows: 2.78 years to RECOVER HALF the present value of the project.
I don’t know why RECOVER HALF is used.
I think it should be: 2.78 years to RECOVER the present value of the project, without the need to use HALF.Or, like your explanation, it’s just approximate, so Recover half and Recover can both be used?
Thanks
March 1, 2019 at 1:14 pm #506981I found out the answer to my question. it’s “Start” of each of Years 2 to 4.
Anyway, thanks.
January 5, 2019 at 10:14 am #500058After watching the video: source of finance-debt, I took a look at initial recognition and measurement of financial liabilities from IFRS 9, which says:
At initial recognition, financial liabilities are measured at fair value.
It seems that the redeemable bonds mentioned in the question is classified as financial liabilities.
If so, the bond at initial recognition should be measured at fair and its subsequent measurement should be based on fair value through profit or loss or amortized cost.
So, the $120M of bond in question is stated at par value or fair value?
Please help to clarify my confusion.
Thanks
January 5, 2019 at 8:45 am #500054I got it this time.
Thanks a lotJanuary 2, 2019 at 1:42 pm #499681I got it. Thanks for the reminder
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