Page 84 - F2 Integrated Workbook STUDENT 2019
P. 84
Chapter 3
Example 3.9
On 1 January 20X1, Lucas invests $10,000 in 10% debentures. The
debentures will be repaid at a premium at the end of their term. Lucas’
business model is to hold some and sell some of the debentures. The
effective rate of interest is 14%.
The fair value of the bond was as follows:
31 December 20X1 $11,000
31 December 20X2 $9,500
Prepare extracts from the statement of profit or loss and statement of
financial position for the years ended 31 December 20X1 and 20X2.
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