- This topic has 4 replies, 2 voices, and was last updated 8 years ago by
.
Viewing 5 posts - 1 through 5 (of 5 total)
- Posts
Dear Tutor,
I have a question regarding the accounting entries for the calling of the guarantee:
DEBIT Financial liabilities $39.6m
CREDIT Profit or loss $39.6mWhy the entry is not for the amount $39.2, which would leave the amortisation of 0.4 also for the second year in the P/L?
Thank you.
Dear Tutor,
the question is from the BPP revision kit: Question No. 18 Coatmin.
Thank you.
Hi,
The journal is removing the $39.2 million that was recorded at the reporting date and also the amortisation of the fair value of the guarantee at $0.4 million.
I wouldn’t worry too much about this one though as it is a ridiculously hard question.
Thanks
Viewing 5 posts - 1 through 5 (of 5 total)
- You must be logged in to reply to this topic.