On 1January 2016, Hamududu bought a K100,000 5% bond for K95,000, incurring issues cost of
K2,000. Interest is received in arears. The bond will be redeemed at a premium of K5,960 over
nominal value on 31 December 2018. The effective rate of interest is 8%.
The fair value of the bond was as follows:
31/12/ 2016 K110,000
31/12/2017 K104,000
Rrequired, explain with calculations, how the bond will been accounted for over relevant years
(30 marks
Ask the Tutor ACCA FA
FINANCIAL REPORTING - BONDS
3y ago#1None of what you have typed is examinable in Paper FA and so I am astonished that you have found this question in whichever book you are using for practice. (In addition you cannot be asked 30 mark questions in Paper FA!)
This topic is locked — no new replies.