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The carrying amount of the bonds in the
statement of financial position at 31 December 20X3 will be $9.99 million ($10
million – $10,000).
Year ended 31 December 20X4
I bonds would have a carrying amount of
$10,300,000 ($10m + $0.8m – $0.5m) at 31 December 20X4 before considering any
impairment issues.Why for 20×4 they used 10m figure why not 9.99 m?
You need to summarise the question in your own words. Other candidates don’t want to have to try and find Humming – or whatever it is.
Not quite sure what you are asking, but remember that 2 ledger accounts are maintained – bond and allowance. The bond account stays at 10m. The 2 ledger accounts are then netted off in the FS. Effective interest is calculated on the GROSS amount.
This is a recent exam question – you will find a full debrief in our online revision kit.
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