• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

Congratulations to Jamil from Pakistan and Jeeva from Malaysia - Global Prize winners!
see all ACCA December 2022 Genius Hunt Competition winners >>

Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>

FINANCIAL INSTRUMENTS

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › FINANCIAL INSTRUMENTS

  • This topic has 5 replies, 3 voices, and was last updated 1 year ago by P2-D2.
Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • March 15, 2021 at 10:53 am #614453
    ABDULLAHI312
    Participant
    • Topics: 89
    • Replies: 74
    • ☆☆

    Hi chris.

    Number 2 of example 1 on page 46 of lecture notes. could you please show what will happen in the derecognition phase using journal entries?
    number 3 of the same example. we got a discount on the par value but we worked out for redemption on the original par value attached to the debentures, why? also for coupon received.
    thanks.

    March 15, 2021 at 11:03 am #614454
    ABDULLAHI312
    Participant
    • Topics: 89
    • Replies: 74
    • ☆☆

    On the same note if i may. suppose Norman bought(number 3 of example 1) a convertible debentures what would be the treatment? in the later part of this chapter, i did understood the treatment of ISSUED convertible debentures. was wondering if the opposite happens, BUYING/INVESTING in convertible debentures.

    thanks, Chris. stay safe.

    March 17, 2021 at 7:45 pm #614636
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 6460
    • ☆☆☆☆☆

    ABDULLAHI312 wrote:Hi chris.

    Hi Abdullah,

    I won’t give you the double entries just yet as I’ll challenge you to give it a go yourself. The asset will be removed, cash received and then a gain/loss on disposal will be recorded. Any gains held in reserves are transferred through retained earnings. See how you get on and let me know.

    For the redemption in the future the investor is only able to redeem at par, there is no premium on redemption. This will be the same for all convertible instruments.

    Thanks

    March 17, 2021 at 7:47 pm #614637
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 6460
    • ☆☆☆☆☆

    ABDULLAHI312 wrote:On the same note if i may. suppose Norman bought(number 3 of example 1) a convertible debentures what would be the treatment? in the later part of this chapter, i did understood the treatment of ISSUED convertible debentures. was wondering if the opposite happens, BUYING/INVESTING in convertible debentures.

    Hello again!

    I like how you are thinking about the treatment of the investor for this instrument but it won’t be in the exam, so don’t worry too much about it.

    Thanks

    March 27, 2021 at 5:39 pm #615344
    MLAZIMILANO
    Participant
    • Topics: 0
    • Replies: 4
    • ☆

    Hi Chris,

    Quick question on Financial Reporting here,

    In example 3 on Financial Instruments, Alice issued one million 4% convertible debentures and the par value is 100million. When calculating this you multiplied 1 000 000 by 100. I’m kind of confused, isn’t it supposed to be 1 000 000 by 100mill to give 10e14?

    Other than that. Thank you so much for the lectures they make learning much easier to comprehend. Sometimes tuition providers explanations in their respective the study text’s can really cause a cranium explosion. hahaha!!

    Thanks.

    April 1, 2021 at 5:28 pm #615697
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 6460
    • ☆☆☆☆☆

    Hi,

    Is the par value not $100 and not 100 million as you suggest? So that there are then 1,000,000 convertibles at $100 each.

    Thanks for the positive comment, it is always good to hear that we’re making a difference.

    Thanks

  • Author
    Posts
Viewing 6 posts - 1 through 6 (of 6 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

ACCA News:

 

ACCA My Exam Performance for non-variant Applied Skills exams is available NOW

NEW! Download the ACCA Pass Guide

FREE Verifiable CPD for ACCA Members

ACCA mock exams and debrief videos

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

Donate

If you have benefited from OpenTuition please donate.

ACCA CBE 2023 Exams

Instant Poll * How was your exam, and what was the result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Latest comments

  • Amalsudheesh on FA Chapter 6 Questions Depreciation
  • roshpatel on PM Chapter 7 Questions Pricing
  • John Moffat on Inventory Control (part 2) Quantity Discounts – ACCA Management Accounting (MA)
  • John Moffat on FA Chapter 6 Questions Depreciation
  • SimplyDammy on Inventory Control (part 2) Quantity Discounts – ACCA Management Accounting (MA)

Copyright © 2023 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy