one more question, Mike, help needed, please
for every 1,000 shares acquired, P is to issue a 4.5% $100 loan note values at par. we bought 85% of S 600,000 shares. the market price of the S shares was $2.20 at the moment. how should we account for this in our FS?
Ask the Tutor ACCA FR
acquisition of shares for loan notes
could it be this way:
4.5% loan notes (600,000 x 85% x 100/1,000) = $51,000?
just desperately tried to apply my critical thinking skills to the issue in your absence :))
That's absolutely correct - well done with your critical thinking!
thank you :)
You're welcome
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