Page 86 - F2 Integrated Workbook STUDENT 2019
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Chapter 3
Example 3.10
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 trade bonds in the short term. The effective rate of
interest is 14%. The bonds were sold for their fair value of $11,000 on
1 January 20X2.
Prepare extracts from the statement of profit or loss and statement of
financial position for the years ended 31 December 20X1.
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