Present Value Bonds

Question 1

Info

Answer 1

Started on 10 September 2014 @7.25 AM
Total questions 69
To do at a time 69
Practice session 96 or so

Question 2

financial statements in accordance with IFRS.

methods to report the bonds

Answer 2

Amortized cost.

Fair value through profit or loss

Question 3

What are deferred charge to be amortized over the term of the bonds?

Answer 3

Printing and engraving. Legal fees. Fees paid to independent accountants for registration information.
Commissions paid to underwriter

Question 4

Discount on bond payable is

Answer 4

Debit.

Question 5

Under IFRS, convertible bonds issued are

Answer 5

Convertible bonds are separated into debt and equity components with the liability component recorded at fair value and the residual assigned to the equity component. The fair value election may be made for the financial liability component.

Question 6

Question 54:

PVB-0040

Answer 6

Under the book value method, the stock is recorded at the carrying amount of the converted bonds less any conversion expenses.

Question 7

Williams would realize net cash receipts from the bond issuance o

Answer 7

Net the amount of cash received with the amount of cash paid.