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Sir
I should know this or it is p2Example 3: Accounting for a financial liability at amortised cost
Broad raises finance by issuing $20,000 6% four-year loan notes on the first day of the current accounting period. The loan notes are issued at a discount of 10%, and will be redeemed after three years at a premium of $1,015. The effective rate of interest is 12%. The issue costs were $1,000.Required
Explain and illustrate how the loan is accounted for in the financial statements of Broad.Take some substantial degree of comfort in the probability that any question at F7 asking about financial instruments is likely to be very superficial.
Doing the exam in September? Don’t even think about looking at financial instruments (in fact, nor at any other subject that is not within your instant capabilities)
Concentrate on what you CAN do and practice as many times as you can as many mcqs as you can get your hands on
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