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I AS 32

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › I AS 32

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by MikeLittle.
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  • October 22, 2017 at 1:16 pm #412834
    myacca1990
    Participant
    • Topics: 153
    • Replies: 164
    • ☆☆☆

    “Costs of issuing debt instruments and equity shares are covered by IAS 32 which states that such costs should reduce the proceeds from the debt issue or the equity issue”
    The above paragraph is taken from BPP study text.What exactly did it mean by reducing the proceeds from the debt issue?

    October 22, 2017 at 8:26 pm #412873
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23350
    • ☆☆☆☆☆

    When a $50,000 loan note is issued and there are issue costs of $1,000, the double entry would be:

    Dr Cash $49,000
    Dr Issue costs $1,000
    Cr Loan $50,000

    OK?

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