Financial Liabilities Flashcards
1
Q
Initial measurement/
A
Recognise at fair value - net proceeds
2
Q
Financial liabilities subsequent measurement?
A
Amortised cost
3
Q
Financial liability key word in question?
A
Issues
4
Q
Financial asset key word in question?
A
Purchased
5
Q
Coupon rate?
A
Debentures * par value * coupon rate
6
Q
Debentures calculation?
A
Par value * debentures * (1 + share premium)
7
Q
Five columns in the calculation?
A
Year
b/f
Finance cost
Coupon
c/f
8
Q
Where does finance cost go?
A
In SPL
9
Q
Where does c/f go?
A
In SFP
10
Q
Coupon double entry?
A
Debit: Finance cost (SPL)
Credit: Financial liability (SFP)
11
Q
Finance cost double entry?
A
Debit: Financial liability (SFP)
Credit: Bank
