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Forums › ACCA Forums › ACCA SBR Strategic Business Reporting Forums › IAS 39 – Financial Asset / Liability
Hi All,
Can you please help me with the below:
1. On 1 January 20X8, Charlton purchased $6m 3.5 % redeemable debt. The transaction costs amounted to $120,000. The debt is redeemable on 31 December 20Y3 at a premium of 30%. What investment income should be recorded each year in respect of the debt instrument?
2. At the start of the current year, Ben Hur issued $80m 8% loan stock at a discount of 10%. The issue costs were $1.4m made up of apportioned costs of the finance and acquisitions department of $1m and professional and underwriting costs of $400,000, relating directly to this issue. The loan stock will be redeemed in 5 years time at a premium of 11.5%. Effective interest rate is 12.75%.
I need help with the financial asset/liability table.
Thanks in advance.