• 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

New! Lectures for ACCA AAA September 2022 Exams are now available >>

New! BPP Books for ACCA September 2022 Exams are now available, get your discount code >>

MV of debt

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › MV of debt

  • This topic has 1 reply, 2 voices, and was last updated 7 months ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • December 2, 2021 at 10:54 pm #642351
    humai
    • Topics: 710
    • Replies: 233
    • ☆☆☆☆

    If company recently issues new debt then would its MV be equal to its balance sheet value?

    December 3, 2021 at 8:42 am #642372
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 49618
    • ☆☆☆☆☆

    Not necessarily.

    On the Statement of Financial Position (it is not called the Balance Sheet any more), the debt appears at its nominal value (which is $100 per bond unless told otherwise).

    The company may issue the debt for $100 in which case the MV initially will be $100. However they may issue the debt at a discount and if (for example) it was issued for $90 then the initial market value will be $90 (even though on the SOFP it will appear at its nominal value of $100).

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate

If you have benefited from OpenTuition please donate.

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Latest comments

  • John Moffat on Irrecoverable Debts and Allowances Example 3 – ACCA Financial Accounting (FA) lectures
  • seef on Irrecoverable Debts and Allowances Example 3 – ACCA Financial Accounting (FA) lectures
  • hiiradomar on MA Chapter 1 Questions Accounting for Management
  • praveenmasih on PPE – revaluation downwards – ACCA Financial Reporting (FR)
  • John Moffat on Discounted Cash Flow Further Aspects, Lease versus Buy – ACCA Financial Management (FM)

Copyright © 2022 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


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