Page 11 - Chapter 23 - Interest
P. 11
Example - Basic Holder =
receive interest
Anja Ltd enters into an agreement on 1 January 2014
whereby it acquires a financial instrument with a face
value of R100 000 at a discount of 10%. The financial
instrument has a maturity date of 31 December 2015,
when an amount of R130 000 will be repaid. Anja
Ltd's financial year ends on 31 December.
The yield to maturity rate is 20,18504%
Calculate the effect on Anja Ltd's taxable
income for the 2014 and 2015 years of
assessment.
