Amortisation – NBC Institute

FR – Nov 2022 – L2 – Q4d – Amortisation Schedule for Bond

Prepare amortisation schedule for Lagos State Government Bond and record journal entries on maturity date.

Question

On January 1, 2020, an entity bought Lagos State Government Bond in the capital market for N575,000,000. The principal amount of the bond is
N500,000,000 and it is redeemable at par on December 31, 2025. The bond has a stated interest rate of 15% payable annually and an effective interest rate of 12%. Draft an amortisation schedule to indicate the amortised cost at the end of each year and the journal entries at the end of December 31, 2025

Answer

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Tags: Amortisation, Bond, Effective Interest Rate, Journal Entries, Lagos State Government Bond
Level: Level 2

Topic: Financial Instruments (IAS 32, IFRS 9)
Series: NOV 2022

FR – May 2018 – L2 – Q2d – Financial Reporting Standards and Their Applications

Discuss the accounting treatment for the revaluation of an intangible asset for 2016 and 2017 in accordance with IAS 38.

Question

Delali Ltd adopts the revaluation model for subsequent measurement of its intangible assets in accordance with IAS 38: Intangible Assets. The policy of Delali is to revalue its intangible asset at the end of each year. An intangible asset with an estimated useful life of 9 years was acquired on 1 January 2016 for GH¢45,000. It was revalued to GH¢54,400 on 31 December 2016, and the revaluation surplus was correctly recognized on that date. As at 31 December 2017, the asset was revalued at GH¢32,000.

Required:
Discuss the accounting treatment required in the 2016 and 2017 financial statements. (4 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Amortisation, IAS 38, Intangible Assets, Revaluation
Level: Level 2

Topic: Financial Reporting Standards and Their Applications
Series: MAY 2018

FR – Nov 2022 – L2 – Q4d – Amortisation Schedule for Bond

Prepare amortisation schedule for Lagos State Government Bond and record journal entries on maturity date.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Amortisation, Bond, Effective Interest Rate, Journal Entries, Lagos State Government Bond
Level: Level 2

Topic: Financial Instruments (IAS 32, IFRS 9)
Series: NOV 2022

FR – May 2018 – L2 – Q2d – Financial Reporting Standards and Their Applications

Discuss the accounting treatment for the revaluation of an intangible asset for 2016 and 2017 in accordance with IAS 38.

Question

Required:
Discuss the accounting treatment required in the 2016 and 2017 financial statements. (4 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Amortisation, IAS 38, Intangible Assets, Revaluation
Level: Level 2

Topic: Financial Reporting Standards and Their Applications
Series: MAY 2018

Question Tag: Amortisation

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FR – Nov 2022 – L2 – Q4d – Amortisation Schedule for Bond

Prepare amortisation schedule for Lagos State Government Bond and record journal entries on maturity date.

FR – May 2018 – L2 – Q2d – Financial Reporting Standards and Their Applications

Discuss the accounting treatment for the revaluation of an intangible asset for 2016 and 2017 in accordance with IAS 38.

FR – Nov 2022 – L2 – Q4d – Amortisation Schedule for Bond

Prepare amortisation schedule for Lagos State Government Bond and record journal entries on maturity date.

FR – May 2018 – L2 – Q2d – Financial Reporting Standards and Their Applications

Discuss the accounting treatment for the revaluation of an intangible asset for 2016 and 2017 in accordance with IAS 38.

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FR – Nov 2022 – L2 – Q4d – Amortisation Schedule for Bond

Prepare amortisation schedule for Lagos State Government Bond and record journal entries on maturity date.

You're reporting an error for "FR – Nov 2022 – L2 – Q4d – Amortisation Schedule for Bond"

FR – May 2018 – L2 – Q2d – Financial Reporting Standards and Their Applications

Discuss the accounting treatment for the revaluation of an intangible asset for 2016 and 2017 in accordance with IAS 38.

You're reporting an error for "FR – May 2018 – L2 – Q2d – Financial Reporting Standards and Their Applications"

FR – Nov 2022 – L2 – Q4d – Amortisation Schedule for Bond

Prepare amortisation schedule for Lagos State Government Bond and record journal entries on maturity date.

You're reporting an error for "FR – Nov 2022 – L2 – Q4d – Amortisation Schedule for Bond"

FR – May 2018 – L2 – Q2d – Financial Reporting Standards and Their Applications

Discuss the accounting treatment for the revaluation of an intangible asset for 2016 and 2017 in accordance with IAS 38.

You're reporting an error for "FR – May 2018 – L2 – Q2d – Financial Reporting Standards and Their Applications"

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