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E-view Cinemas Sep Dec 17

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › E-view Cinemas Sep Dec 17

  • This topic has 1 reply, 2 voices, and was last updated 3 months ago by John Moffat.
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  • Author
    Posts
  • April 29, 2022 at 8:38 am #654592
    tinkle
    • Topics: 50
    • Replies: 43
    • ☆☆

    Hello,

    Please help me understand why are we only paying off the debt at its book value of 3200 why not multiply by current MV and divide by par value of 100??

    April 29, 2022 at 8:51 am #654597
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 50053
    • ☆☆☆☆☆

    They are not buying the debt in the stock exchange, they are simply paying off the amount of the borrowing which is 3,200.

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