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Dec 2011 Q4 (a)

This topic has 3 replies, 2 voices, and was last updated 9 years ago by John Moffat.

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December 5, 2015 at 3:08 pm #287873
yushanshan
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Hi sir,
I just wonder the reason why nominal value of bonds is 80 m rather than 125 m in income statement.
December 5, 2015 at 4:58 pm #287908
John Moffat
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Bonds do not appear in the Statement of profit or loss – they appear in the Statement of financial position (which used to be called the Balance Sheet), and they always appear there at nominal value.
December 5, 2015 at 5:02 pm #287914
yushanshan
Member
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Sorry, I mean 125 in balance sheet? but it is not nominal value .
December 5, 2015 at 5:18 pm #287934
John Moffat
Keymaster
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The SOFP (we do not call it Balance Sheet any more) shows the total nominal value.
Since it is $125M it means that there are $125M / 100 = 1.25M bonds in issue.
(This is financial accounts rather than anything special for financial management)
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