Financial Liab.(9)

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May 17, 2022 at 6:28 am #655854
Sourav9271
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Hello sir,
When we issue debt Dr Cash Cr Fin Liab @proceeds.
When we buy debt Dr Inv Cr Cash/bank @cost..

So don’t we need to find the financial liability by p.v of future cash flows?
Or is this method only relevant for Lease liab and convertible debts?
May 17, 2022 at 3:23 pm #655897
Stephen Widberg
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Perfect summary. Well done. 🙂

Only funnies:
1. Leases
2. Convertibles
3. (one more!) If you lend money interest free – e.g. to employees – need to discount to PV using whatever interest rate they give you (somewhere) in the question.
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