Page 18 - Chapter 23 - Interest
P. 18
Solution: Interest-bearing Arrangements
RE = YTM (%): 12.35%
Accrual amounts deemed to have accrued to RE (gross income)
Accrual amount = YTM (%) x adjusted initial amount
Accrual period 1 Accrual period 2
90 days 275 days
1 Jan 2014 31 Dec 2014 31 Dec 2015
(R1 million) R100 000 1 150 000
31 March 2014 31 March 2015
End of End of
yoa yoa
Jan 31
Feb 28
March 31
