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.
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HI MIke,
Q2
Why we post additional Finance charge on Long Term liability? How you know that is long term instead current liabilities?
Q3 & Q4
Should we also need to post Finance charge on separate line – current liabilities, instead in the same line as borrowings? Maybe I missed something here due to applying effective interest rate. Could you please explain, and please refer me to the pages in Notes.
Thank you a lot.
Regards.
Mike,
any reason why you skip to answer on my questions?
I am struggling to understand this part, so please help.
Thank you.
Regards,
You’re right – I should have said for question 2 what the redemption date was. However, a sprinkling of common sense would have told you that these preference shares were only 6 months old and for something to be redeemable at a “large premium” would suggest that redemption date is more that 12 months away in the future
The current element of the interest / dividend has been paid. The difference between actual rate and effective rate is the reason why the liability is built up so that, by the time we reach redemption date, the liability is shown in full
In short, no, you’re incorrect
Now, I have a bone to pick with you! How dare you question my response times? It’s not a frequent occurrence but on this occasion I was rendered speechless!
Mike, thank you for answers.
No intention from my side to challenge your response time at all. To be honest, I didn’t have in mind to challenge someone who help us to understand the topics that are confuse us. I notice that you skip to answer on my question and I tough that you unintentionally missed it. So, with replay I want to place answer on top so you can notice it. Apologies if you understand in other way.
Regards,
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