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I thought convertible loan notes have to be split between equity and liability. Has anyone done that?
6% Convertible loan $40m and directors pushing for 8% etc…
Interest rate of 8%
Yr 1 0.93
Yr 2 0.86
Yr 3 0.79Split the Equity component 1st:
$40m X 6% X (0.93+0.86+0.79) =$ 6,192
$40m X 0.79 =$31,600
Total =$37,792
Equity share component =$ 2,208 (goes on your Equity in S of FP)
Total Convertible Loan =$40,000Now for interest and LTL loan:
6% Loan $37,792
add 8% interest(37,792 X 8%) $ 3,023 (deduct from your S of P&L)
Total $40,815
Pay (6% X 40,000) ($ 2,400)
Total LTL Loan $38,415 (goes in your LTL in S of FP)Anyone struggling with this stuff just follow Mike Little’s lectures and revision on this website.
That is what I did as well, but most people seem not to have bothered with splitting…ahh relief
any one still remember the question 31
is regard the deferred taxi get the tax relief for my SOPL
is it true ?and my SOFP is
deferred tax asset $2400 under current asset
is it correct ?I think the paper was fair. One just had to be prepared for it. Question 32 was also the toughest for me.
Anyone remember what the share price was immediately before acquisition for the parent in question 32? As part of the ceo’s observations current price was 2.30
@sunnydeol89 said:
Anyone remember what the share price was immediately before acquisition for the parent in question 32? As part of the ceo’s observations current price was 2.30I think it was $2.00. They issued 6m new shares and share cap and share premium increased from the prior year by $12m.
previous share price was 2$, 6m new shares at 1$ nominal value and increase in share premium by 6 milion, previous year share premium was nil. So 6m at 1$ goes to share capital and if 6 m to share premium so must have been 2 $ all together.
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