The document contains multiple problems related to accounting for income taxes. It discusses concepts such as:
- Temporary and permanent differences between taxable income and accounting income
- Calculation of current tax payable and deferred tax assets/liabilities
- Tax loss carryforwards and their impact on deferred tax calculations
Nhóm mình nhận làm báo cáo thực tập tốt nghiệp kế toán, tất cả các đề tài. Làm theo đề cương và sửa hoàn thiện theo yêu cầu của giáo viên. Số liệu tính toán chuẩn. Các bạn có nhu cầu vui lòng liên hệ với mình qua số 01642595778. Mình cảm ơn!
Nhóm mình nhận làm báo cáo thực tập tốt nghiệp kế toán, tất cả các đề tài. Làm theo đề cương và sửa hoàn thiện theo yêu cầu của giáo viên. Số liệu tính toán chuẩn. Các bạn có nhu cầu vui lòng liên hệ với mình qua số 01642595778. Mình cảm ơn!
Nhóm mình nhận làm báo cáo thực tập tốt nghiệp kế toán, tất cả các đề tài. Làm theo đề cương và sửa hoàn thiện theo yêu cầu của giáo viên. Số liệu tính toán chuẩn. Các bạn có nhu cầu vui lòng liên hệ với mình qua số 01642595778. Mình cảm ơn!
Nhóm mình nhận làm báo cáo thực tập tốt nghiệp kế toán, tất cả các đề tài. Làm theo đề cương và sửa hoàn thiện theo yêu cầu của giáo viên. Số liệu tính toán chuẩn. Các bạn có nhu cầu vui lòng liên hệ với mình qua số 01642595778. Mình cảm ơn!
Nhận viết luận văn đại học, thạc sĩ trọn gói, chất lượng, LH ZALO=>0909232620
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Các bạn sinh viên vào tải mẫu chuyên đề tốt nghiệp chuyên ngành kế toán đề tài luận văn Xây dựng kế toán quản trị trong doanh nghiệp sản xuất tại thành phố Hồ Chí Minh.
Bài tập kế toán tài chính doanh nghiệp có đáp án chi tiết cho sinh viên, bai tap ke toan doanh nghiep, bài tập kế toán tài chính có lời giải. Xem chi tiết lời giải tại: http://khoaketoanthue.com/
KIỂM SOÁT NỘI BỘ CHU TRÌNH BÁN HÀNG VÀ THU TIỀN Nguyễn Công Huy
Luận văn tốt nghiệp : KIỂM SOÁT NỘI BỘ CHU TRÌNH BÁN HÀNG VÀ THU TIỀN TẠI CHI NHÁNH HÓA DẦU ĐÀ NẴNG
Để tải file word và slide hãy bấm vào link http://luanvan.forumvi.com/t6-topic
email liên hệ: luanvan84@gmail.com
This document contains solutions to problems related to leverage and capital structure.
Some key points summarized:
1) Breakeven analysis is performed for multiple companies using algebraic formulas to calculate the quantity needed to break even. Comparisons are made between companies' operating leverage.
2) Graphs are used to show the relationship between sales, costs, profits and losses at different production levels as well as to illustrate how degree of operating leverage decreases as production increases past the breakeven point.
3) Calculations are shown for earnings per share under different financing plans and levels of earnings before interest and taxes to demonstrate how degree of financial leverage is affected.
4) Integrated examples bring together concepts of operating
This document contains solutions to problems related to leverage and capital structure.
1) It provides calculations of breakeven points, degrees of operating leverage, earnings per share, and degrees of financial leverage for various companies.
2) It demonstrates how changes in sales, costs, prices, and financial structure impact measures of leverage and risk.
3) Integrative problems bring together multiple leverage concepts to analyze overall business risk for different firms.
Nhận viết luận văn đại học, thạc sĩ trọn gói, chất lượng, LH ZALO=>0909232620
Tham khảo dịch vụ, bảng giá tại: https://vietbaitotnghiep.com/dich-vu-viet-thue-luan-van
Các bạn sinh viên vào tải mẫu chuyên đề tốt nghiệp chuyên ngành kế toán đề tài luận văn Xây dựng kế toán quản trị trong doanh nghiệp sản xuất tại thành phố Hồ Chí Minh.
Bài tập kế toán tài chính doanh nghiệp có đáp án chi tiết cho sinh viên, bai tap ke toan doanh nghiep, bài tập kế toán tài chính có lời giải. Xem chi tiết lời giải tại: http://khoaketoanthue.com/
KIỂM SOÁT NỘI BỘ CHU TRÌNH BÁN HÀNG VÀ THU TIỀN Nguyễn Công Huy
Luận văn tốt nghiệp : KIỂM SOÁT NỘI BỘ CHU TRÌNH BÁN HÀNG VÀ THU TIỀN TẠI CHI NHÁNH HÓA DẦU ĐÀ NẴNG
Để tải file word và slide hãy bấm vào link http://luanvan.forumvi.com/t6-topic
email liên hệ: luanvan84@gmail.com
This document contains solutions to problems related to leverage and capital structure.
Some key points summarized:
1) Breakeven analysis is performed for multiple companies using algebraic formulas to calculate the quantity needed to break even. Comparisons are made between companies' operating leverage.
2) Graphs are used to show the relationship between sales, costs, profits and losses at different production levels as well as to illustrate how degree of operating leverage decreases as production increases past the breakeven point.
3) Calculations are shown for earnings per share under different financing plans and levels of earnings before interest and taxes to demonstrate how degree of financial leverage is affected.
4) Integrated examples bring together concepts of operating
This document contains solutions to problems related to leverage and capital structure.
1) It provides calculations of breakeven points, degrees of operating leverage, earnings per share, and degrees of financial leverage for various companies.
2) It demonstrates how changes in sales, costs, prices, and financial structure impact measures of leverage and risk.
3) Integrative problems bring together multiple leverage concepts to analyze overall business risk for different firms.
The document contains solutions to practice problems related to mergers and acquisitions. Problem 17-1 discusses the tax effects of an acquisition, finding that the tax savings are less than the cost of the merger. Problem 17-2 also examines tax effects, determining that a proposed merger is recommended based on positive net benefit. Problem 17-3 evaluates the present value of tax benefits for two potential acquisition targets.
working capital ch solution financial management ....mohsin mumtazmianmohsinmumtazshb
The document discusses solutions to problems related to working capital and current asset management. It addresses topics such as cash conversion cycle, economic order quantity, accounts receivable management, and cash management techniques. The problems calculate financial metrics and evaluate strategies for reducing costs and improving profitability within the constraints of various assumptions provided in the questions.
This document contains calculations for various financial problems. It includes calculations for:
1) Comparing the total value after 1 and 2 years for deposits in Bank A and Bank B, with Bank B earning more in both cases.
2) Calculating the future value of deposits of $5,000, $8,000, and $12,000 over different time periods with 6% interest.
3) Calculating the present value of an annuity of $20,000 over 4 years with 9% interest, both initially and deferred 2 years.
The document shows the work for several other calculations involving present and future values, annuities, and comparing expected returns and risk of stock and bond
This document contains 10 calculation problems analyzing project cash flows. It provides the key inputs, calculations, and answers for each problem. The problems calculate metrics like free cash flow, net operating income, operating cash flows, and net present value for various capital investment projects.
This document contains solutions to 16 problems related to working capital and current asset management. The problems cover topics such as cash conversion cycle calculation and analysis, economic order quantity modeling, accounts receivable management, cash discounts, and float. For each problem, the relevant calculations and recommendations are shown. An ethics problem at the end questions the practice of banks locating controlled disbursement accounts in very distant locations from the client company.
The document discusses various capital budgeting methods including average return on investment, payback period, net present value, internal rate of return, modified internal rate of return, and profitability index. It provides examples of how to calculate each method and compares the advantages and disadvantages. It also discusses how to estimate cash flows, evaluate capital projects, and conduct sensitivity analysis.
This document contains an assignment submitted by Akershit Kumar Sharma to Professor Mushtaq Ahmed on April 7, 2013. It includes answers to various questions related to contribution format income statements segmented by territory and product line. The key details provided are contribution format income statements for a company's total sales, segmented by the northern and southern territories, and further segmented of the northern territory by its Paks and Tibs product lines. Analysis is also provided on performance of different territories and product lines.
The document contains financial information and ratios for multiple companies. It provides income statements, balance sheets, and calculations of key financial ratios such as current ratio, quick ratio, inventory turnover, accounts receivable turnover, profit margin, return on assets, return on equity, debt to assets, and interest coverage. The ratios are calculated to assess the liquidity, asset efficiency, profitability, leverage, and debt servicing ability of the companies.
This document provides multiple choice questions and solutions related to company accounts. It covers topics like shareholders' equity, issue and redemption of shares, debentures, preference shares, dividends, and balance sheets. For example, it explains how to calculate the amount of dividend payable based on the proposed dividend rate and called-up equity share capital. It also shows calculations for determining the number of equity shares to be issued to raise funds for redeeming preference shares.
This document contains calculations and explanations for determining basic and diluted earnings per share (EPS) for three questions.
For question 1, basic EPS is calculated as net income divided by weighted average shares outstanding.
Question 2 involves more steps to calculate basic and diluted EPS, accounting for additional shares from options, convertible bonds, and convertible preference shares. Diluted EPS is calculated by ranking the incremental EPS from each potential ordinary share instrument and accumulating the increases.
Question 3 also involves multiple steps to calculate basic and diluted EPS, considering ordinary shares, convertible preference shares, options, and convertible bonds. Diluted EPS is determined by accumulating the increases in earnings and shares from each instrument.
Based on the information provided:
- Short-term rates increased to 11%
- Long-term rates remain at 13%
- Temporary current assets remain at $1,000,000
- Permanent current assets remain at $2,000,000
- Fixed assets remain at $1,200,000
- Earnings before interest and taxes remain at $996,000
- Tax rate remains at 40%
With the new short-term rate of 11%, short-term interest expense would be:
Temporary current assets of $1,000,000 at 11% = $110,000
Long-term interest expense and the calculation of earnings after taxes remains the same.
Therefore
This document summarizes the business of a company that provides infrastructure services including electric power, communications, and pipeline services. It discusses the company's end markets and customers, historical and projected financial data, strategies for growth in areas like 5G networks and renewable energy, and metrics showing increases in revenue, earnings, and backlog between 2015-2019. Key points include that the top 10 customers accounted for 37% of revenues in 2018, revenues are projected to grow from $7.6B in 2015 to $12B in 2019, and adjusted EBITDA and backlog have also increased substantially over this period.
This document provides solutions to end-of-chapter problems from several finance-related chapters. The problems solved include calculations related to capital budgeting, risk analysis, capital structure, derivatives, and multinational finance. Equations and numerical calculations are shown to arrive at solutions such as NPV, WACC, leverage ratios, exchange rates, and currency conversions. Financial calculators are also referenced as tools used to solve some of the problems.
The document provides financial information for the years 2015 and 2016, including sales, cost of goods sold, operating expenses, operating profit, net profit, and income tax. It includes comparative income statements and percentage increases/decreases for key line items between the two years. Overall, net sales increased by 12% from 2015 to 2016, while net profit increased by 40%. Cost of goods sold and operating expenses also increased from 2015 to 2016.
This document provides information to complete an income statement for a company for the month of June. It estimates revenues and expenses based on given information. Sales are estimated to be 30,000 units at $7.50 per unit, for total sales of $225,000. Variable expenses are estimated to be 60% of sales. Fixed expenses are the break-even point of $180,000. The contribution margin and degree of operating leverage are then calculated to estimate net operating income for June.
This document presents the statement of financial position and statement of comprehensive income for PT Luber and PT Al Caisario as of 31 December 2011 and 2010 respectively.
The statement of financial position of PT Luber shows total assets of Rp3.8 billion consisting of current assets, property and equipment, long term investments and intangible assets. Total liabilities are Rp2.7 billion comprising current and non-current liabilities. Total equity is Rp1.1 billion.
The statement of comprehensive income of PT Al Caisario for the year ended 31 December 2010 shows net income of Rp86 billion comprising income from continuing and discontinued operations, offset by comprehensive loss of Rp14 billion.
This document contains solutions to practice problems about current liabilities management. It addresses topics like cash discounts, credit terms, accounts receivable financing, inventory financing, and the costs associated with different sources of short-term financing like bank loans, commercial paper, and factoring. The problems calculate effective interest rates and costs of various short-term financing options to determine the most cost effective alternative for different scenarios. Ethics considerations around accounts receivable financing are also discussed.
This chapter discusses key accounting concepts including the income statement, balance sheet, statement of cash flows, and various performance measures. It also covers the calculation of free cash flow and how it is used to determine a firm's intrinsic value. The chapter includes sample financial statements and uses them to illustrate accounting analyses such as evaluating the impact of expansion on assets, liabilities, equity, and cash flows. Key financial metrics like return on invested capital, economic value added, and market value added are also defined and calculated using information from the sample statements. Finally, the chapter reviews features of corporate and individual taxation.
[4:55 p.m.] Bryan Oates
OJPs are becoming a critical resource for policy-makers and researchers who study the labour market. LMIC continues to work with Vicinity Jobs’ data on OJPs, which can be explored in our Canadian Job Trends Dashboard. Valuable insights have been gained through our analysis of OJP data, including LMIC research lead
Suzanne Spiteri’s recent report on improving the quality and accessibility of job postings to reduce employment barriers for neurodivergent people.
Decoding job postings: Improving accessibility for neurodivergent job seekers
Improving the quality and accessibility of job postings is one way to reduce employment barriers for neurodivergent people.
BONKMILLON Unleashes Its Bonkers Potential on Solana.pdfcoingabbar
Introducing BONKMILLON - The Most Bonkers Meme Coin Yet
Let's be real for a second – the world of meme coins can feel like a bit of a circus at times. Every other day, there's a new token promising to take you "to the moon" or offering some groundbreaking utility that'll change the game forever. But how many of them actually deliver on that hype?
Abhay Bhutada, the Managing Director of Poonawalla Fincorp Limited, is an accomplished leader with over 15 years of experience in commercial and retail lending. A Qualified Chartered Accountant, he has been pivotal in leveraging technology to enhance financial services. Starting his career at Bank of India, he later founded TAB Capital Limited and co-founded Poonawalla Finance Private Limited, emphasizing digital lending. Under his leadership, Poonawalla Fincorp achieved a 'AAA' credit rating, integrating acquisitions and emphasizing corporate governance. Actively involved in industry forums and CSR initiatives, Abhay has been recognized with awards like "Young Entrepreneur of India 2017" and "40 under 40 Most Influential Leader for 2020-21." Personally, he values mindfulness, enjoys gardening, yoga, and sees every day as an opportunity for growth and improvement.
1. Elemental Economics - Introduction to mining.pdfNeal Brewster
After this first you should: Understand the nature of mining; have an awareness of the industry’s boundaries, corporate structure and size; appreciation the complex motivations and objectives of the industries’ various participants; know how mineral reserves are defined and estimated, and how they evolve over time.
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Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
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Delve into the world of STREETONOMICS, where a team of 7 enthusiasts embarks on a journey to understand unorganized markets. By engaging with a coffee street vendor and crafting questionnaires, this project uncovers valuable insights into consumer behavior and market dynamics in informal settings."
1. Problem 9.1
Debt component: $9,124,794
equity component: $ 875,206
Retained earnings (unadjusted) 2,000,000
Less amortized bond discount:
20x0 (158,193)
20x1 (166,202)
20x2 (174,616*)
----------------------
1,500,991
Balance sheet (adjusted)
As at 31.12.20x2
Problem 12.1
Fixed asset: taxable temporary diff (TTD): 910,000; 820,000; 730,000
Development expenditures: TTD: 600,000; 600,000; 400,000 Ignored (under IAS 12.15)
Provision: DTD: 60,000; 75,000; 90,000
Interest: 0; 0 0
Taxable income: 600,000 & 2,267,000
Tax rate: 22% & 20%
Current tax payable: 132,000 & 453,400
Defferal tax liablity: 95,700 & -189,500
Problem 11.2
Tax rate: 24%
Current tax payable: 587,784
Ignored: Non qualigying intangible asset
DTL: 5,760
2. Poblem 11.3
Tax rate: 24%
Taxable income: -1,050,900
Current tax payable: 0
DTA: lower of the tax loss and net TTD: 32,160
Dr Deferred tax asset: 32,160
Cr Deferred tax liablity: 5,760
Cr tax expnese: 26,400
Problem 11.4
Tax rate: 25% & 20%
Current tax: 227,825 & 173,880
DTL (1/1/X2): 38,000 (25%)
DTL (31/12/x2): 22,250 (25%)
Adjust: 15,750
Dr Tax expense: 212, 075 & 171,830
Dr DTL: 15,750 & 2,050
Cr Tax payable: 227,825 & 173,880
Problem 11.5
Taxable imcome: 897,000 & 674,000
Tax rate: 20% & 22%
Current tax payalbe: 179,400 & 148,280
DTL (31/12/x0): -46,800 (18%)
DTL (31/12/x1): -15,400 (20%)
DTL (31/12/x1): 17,380
Dr Tax expense: 210,800
DR DTL: -31,400
Cr Tax payable: 179,400
Problem 11.6
Tax loss: -676,000
Tax rate: 22%
Current tax payable: 0
Tax Loss carryforward: -148,720
TTD: 17,380
Dr Deferred tax asset: 17,380
3. Dr Tax expense: 15,400
Cr DTL: 32,780
Problem 11.7
DTLL 58,000 (20%) & 57,200 (22%)
Part (2)
Dr Tax expense: 173,440
Dr DTL: 800
C tax payable: 174,240
Part (3): Dr DTL: 800
DR DTA: 57,200
Cr Tax credit (negative tax expense): 58,000
Problem 11,8
Ignored: development costs
Taxable income: 590,000 x20% Tax payable: 118,000
TTD: 1,030,000
DTD: 90,000
DTL: 188,000 (31/12/x3) (tax rate: 20%)
DTL 31/12/x2: 121,000 (22%)
Dr tax expense: 185,000
Cr tax payable 118,000
Cr DTL: 67,000
Problem 11.9
Taxable income: 1,246,000
TTD: 64,000 & 128,000 Diff of TTD = 64,000
DTL (31/12/x0): 11250 (18%)
DTL (31/12/x1): 21,760 (17%)
Change in DTL: 64,000 -11,520 – 21,760 = 10,240
Problem 11.10
Dr Tax expense: 800,000 & 400,000
Cr Current tax liablity: 800,000 & 400,000
TTD: 4,000,000 & 2,000,000
ĐÁP ÁN IAS 33
4. PROBLEMS
Problem 12.1
Basic earnings per share (20x5) = 27.38 cents
Diluted earnings per share = 25.17 cents
(2) Basic earnings per share (20x4) = 6.65 cents
*$5,000,000 x 0.048
Diluted earnings per share (20x4) = 33.71 cents
Basic EPS (20x4 comparative) = 24.43 cents
Diluted EPS (20x4 comparative) = 33.71 cents x 2/3 = 22.47 cents
Problem 12.2
Basic earnings per share (20x3) = 33.33 cents
Diluted earnings per share = $5,399,123/20,187,500 = 26.74 cents
Problem 12.3
(Note: It is assumed that the ordinary share has a par value of $1 per share and the convertible
preference shares have a par value of $5. Capital structure refers only to the share capital and long-term
debt; it is differentiated from equity structure which includes retained earnings and capital reserves.)
(2) Calculation of basic earnings per share
Basic EPS = EPS (20x3) = $12,480,000/26,875,000
= 46.44 cents
Earnings per share (20x4) = $13,380,000/63,000,000 = 21.24 cents
Comparative 20x3 earnings per share in 20x4 financial statements:
Net profit/adjusted weighted average no. Of shares = $12,480,000/(26,875,000 x 2)
= 23.22 cents
Problem 12.4
Calculation of basic earnings per share:
Basic earnings per share = $7,184,000/20,000,000 = 35.92 cents
Diluted earnings per share = $8,000,000/22,566,667 = 35.45 cents
Test of anti-dilution for convertible preference shares :
Incremental earnings per share = $816,000/2,400,000 = 34 cents.
Problem 12.5
Basic earnings per share (20x1 – first half)
Basic EPS (first half) = $6,520,000/30,000,000 = 21.73 cents
Basic earnings per share (20x1 – second half)
Profit from continuing operations ($2,720,000/36,250,000) = 7.5 cents
Loss from discontinued operations (-$1,500,000/36,250,000) = (4.14) cents
Basic EPS (20x1 – full year)
Basic EPS (full year):
Profit from continuing operations ($9,240,000/33,125,000) = 27.89 cents
Loss from discontinued operations (-$1,500,000/33,125,000) = (4.53) cents
Diluted earnings per share (20x1 – first half)
Diluted EPS (first half) = $7,000,000/36,348,837 = 19.26 cents
5. Diluted earnings per share (20x1 – second half)
Diluted EPS (second half):
Profit from continuing operations ($2,800,000/37,852,837) (cents) = 7.40
Loss from discontinued operations (-$1,500,000/37,852,837) (cents) = (3.96)
Diluted earnings per share (20x1 – full year)
Diluted earnings per share (20x1):
Profit from continuing operations ($9,800,000/37,159,421) = 26.37 cents
Loss from discontinued operations (-$1,500,000/37,159,421) = (4.04) cents
Profit 22.33 cents
Problem 12.6
Basic EPS Basic EPS (continuing operation) = 2,560,000/25,000,000
= 10.24 cents
Basic EPS (discontinued operation) = -$3,000,000/ 25,000,000
= -12 cents
Net Loss = [-$200,000 – $240,000]/25,000,000
= - 1.76 cents
Calculation of diluted EPS (20x3)
Diluted earnings per share (continuing operation) = $2,953,916/30,875,000
= 9.57 cents
Diluted earnings per share (discontinued operation)
= -$3,000,000/30,875,000
= -9.72 cents
Diluted earnings per share (net) = ($2,953,916 - $3,000,000)/30,875,000
= -0.15 cents
Note: Although the potential ordinary shares are antidilutive (as they reduce the net loss per share)
diluted earnings per share is reported for all three components because the control number is profit
from continuing operation.
Earnings per share – 20x4
Basic EPS (20x4) = $3,496,176/ 39,850,000
= 8.77 cents
Diluted earnings per share 20x4
Diluted EPS (20x4) = 8.55 cents (convertible preference shares are antidilutive)
(2) 20x3’s comparative earnings per share in 20x4’s financial statements:
Basic EPS (adjusted for bonus element in rights issue)
Basic EPS (continuing operation) = 2,560,000/(25,000,000 x 2/1.7)
= 8.7 cents
Basic EPS (discontinued operation) = -$3,000,000/ (25,000,000 x 2/1.7)
= -10.2 cents
Net Loss = [-$200,000 – $240,000]/(25,000,000 x 2/1.7)
= - 1.50 cents
Comparative diluted earnings per share :
Continuing operation = $2,953,916/(30,875,000 x 2/1.7)
= 8.13 cents
Discontinued operation = -$3,000,000/(30,875,000 x 2/1.7)
= -8.26 cents
7. (500,000) 1,500,000 Shares repurchased on 31 March 20x6 (50,000)x 9/12 (37,500) Shares repurchased
on 30 September 20x6 (60,000)x 3/12 (15,000) Weighted average number of shares 1,447,500
Calculate basic earnings per share Basic EPS = Profit attributable to ordinary shareholders Weighted
average number of ordinary shares = 6,500,000 =4.49 1,447,500
EXERCISES
Exercise 13.3
31 May 20x6
Dr Remuneration expense 76,667
Cr Share options reserve 76,667
(Recognition remuneration expense : 100,000 options x $2.30 - $153,333)
(2) 1 June 20x6
Dr Cash 300,000
Cr Share option reserves 230,000
Cr Share capital 530,000
(Record exercise of share options by chief executive officer and increase in share capital)
Exercise 13.4
31 May 20x2
Dr IPO expense 416,667
Cr Equity reserve 416,667
(Record receipt of services under an equity-settled share-based payment arrangement:
$500,000 - $83,333)
Dr Equity reserve 500,000
Cr Share capital 500,000
(Transfer of equity reserve to share capital as IPO successfully launched)
PROBLEMS
Problem 13.1
31 December 20x3
Dr Remuneration expense 460,000
Cr Share option – reserve 460,000
(Record share option expense for 20x3)
Problem 13.2
Under Scenario 1 (Employees chose cash alternative):
31 December 20x3
Dr Liability 500,000
Cr Cash 500,000
(Settlement of liability under share-based compensation plan)
Under Scenario 2 (Employees chose equity alternative):
31 December 20x3
Dr Liability 500,000
Dr Share option reserves (equity) 8,000
Cr Share capital 508,000
(Settlement of liability under share-based compensation plan by issue of shares)
Problem 13.3
This is an equity-settled share-based payment transaction which should be measured based on the fair
8. value of the equity instruments granted. However, in rare cases such as this, where the entity is unable
to estimate reliably that fair value at the specified measurement date (e.g. grant date, for transactions
with employees), IFRS 2:24 requires the entity to measure the transaction using an intrinsic value
measurement method.
31 December 20x5
Dr Remuneration expense 5,000
Cr Share option reserve – equity 5,000
(Record share-based payment expense for 20x5)
Dr Cash (100,000 x 0.85) 85,000
Dr Share option reserve – equity 40,000
(100/300 x 105,000 + 5,000)
Cr Share capital 125,000
(Record exercise of 100,000 options at end of 20x5)
Problem 13.4
Summary:
Total expense over vesting period = $280,000
Allocated between:
Equity $ 30,000
Liability $250,000
$280,000
Problem 13.5
31 December 20x2
Dr Remuneration expense 333,333
Cr Share option reserve – equity 333,333
(Record remuneration expense for 20x2.)
31 December 20x3 No journal entry is recorded as remuneration expense is nil.
Problem 13.6
31 December 20x2
Dr Remuneration expense 3,560,000
Cr Share option reserve – equity 3,560,000
(Record remuneration expense for 20x.)
Problem 13.7
1 January 20x4
Dr Share option reserve – equity 2,000,000
Dr Cash (100,000 x 10 x 2) 2,000,000
Cr Share capital 4,000,000
(Record exercise of options)
Problem 13.8
31 December 20x4
Dr Liability 474,000
Cr Remuneration expense 84,000
Cr Cash 390,000
(Record writing back of remuneration expense and settlement of liability on exercise
9. of options)
EXERCISES
Exercise 10.1 (b)
Exercise 10.2 (d).
Exercise 10.3 (a).
Exercise 10.4 (c).
Exercise 10.5 (b)..
Exercise 10.6 (c) .
Exercise 10.7 (c).
Exercise 10.8 (d).
Exercise 10.9 (a).
Exercise 10.10 (b).
Exercise 10.11 (c).
PROBLEMS
Problem 10.1
(1) = 0.95
The hedge is effective as the delta ratio is within the 0.8 and 1.25 range.
(2) Journal entries 1 November 20x5
Dr Margin deposit 330,000 Cr Cash 330,000
31 December 20x5
Dr Futures contract 110,000
Cr Gain on futures contract 110,000
Dr Loss on inventory 100,000
Cr Inventory 100,000
31 January 20x6
Dr Loss on futures contract 190,000
Cr Futures contract 190,000
Dr Inventory 200,000 Cr Gain on inventory 200,000
[To record gain in fair value of inventory
Dr Cash 250,000
10. Dr Futures contract 80,000
Cr Margin deposit 330,000
Problem 10.2
(1) 31 Mar 30 April 31 May Notional amount 100,000 100,000 100,000 Spot price of oil $42 $45 $44
Strike price $40 $40 $40 Premium/unit $3 $6 $4 Fair value of option $300,000 $600,000 $400,000
Intrinsic value $200,000 $500,000 $400,000 Time value $100,000 $100,000 $0
(2) 1 March 20x3
Dr Call option 200,000 /Cr Cash 200,000
31 March 20x3
Dr Call option 200,000 / Cr Hedging reserves – equity 200,000
Dr Loss on time value 100,000 / Cr Call option 100,000
3 April 20x3
Dr Call option 300,000 /Cr Hedging reserves – equity 300,000
31 May 20x3
Dr Hedging reserves – equity 100,000 / Cr Call option 100,000
Dr Loss on time value 100,000 / Cr Call option 100,000
Dr Purchase of jet fuel oil/inventory 4,400,000 / Cr Cash 4,400,000
Dr Hedging reserves – equity 400,000 / Cr Purchase of jet fuel oil/inventory 400,000 (Adjust effective
portion of the hedge against cost of inventory) Dr Cash 400,000 Cr Call option 400,000 ( Close position
on call option)
Problem 10.3
Journal entries for hedged item Journal entries for hedging instrument
30.11.20x1
No journal entry is required to record the
firm commitment
30.11.20x1
Dr Put option 500
Cr Cash
500
[Purchase of put option]
30.6.20x2
Dr Loss on firm
Commitment (P/L) 500
Cr Firm commitment
500
[To record loss in fair value of firm
commitment]
11. 30.6.20x2
Dr Put Option 500
Cr Gain on put option (P/L) 500
Dr Loss on put option (P/L) 300 / Cr Put Option 300
31.7.20x2
Dr Loss on firm Commitment (P/L) 500 / Cr Firm commitment 500
Dr. Investment 5,000/ Cr Cash 5,000
Dr. Firm commitment 1,000/ Cr. Investment 1,000
Dr Cash 4,000/ Cr Investment 4,000
31.7.20x2
Dr Put option 500/ Cr Gain on put option 500
Dr Loss on put option 200/ Cr Put option 200
Dr Cash 1,000/ Cr Put option 1,000
Problem 10.4
(1) The premium on the put option on 28 February 20x4 is $0.07 per FC. The fair value of put option,
intrinsic value and time value are as follows:
01/03/20x3 500,000 0.045 22,500 22,500 -
01/06/20x3 500,000 0.055 27,500 17,500 10,000
31/12/20x3 500,000 0.06 30,000 5,000 25,000
28/02/20x4 500,000 0.07 35,000 - 35,000
(2) Journal entries
1 March 20x3
Dr Put option 22,500 / Cr Cash/bank 22,500
1 June 20x3
Dr Put option 5,000
Dr Loss in time value 5,000
Cr Hedging reserve – equity 10,000
31 December 20x3
Dr Put option 2,500 / Cr Gain on put option 2,500
Dr Loss on firm commitment 15,000 / Cr Firm commitment 15,000
Dr Accounts receivable 850,000 / Cr Sales 850,000
Dr Hedging reserve – equity 10,000
Dr Firm commitment 15,000
Cr Sales 25,000
28 February 20x4
Dr Put option 5,000 / Cr Gain on put option 5,000
Dr Loss on account receivable 10,000 / Cr Accounts receivable 10,000
Dr Cash 840,000 Cr Accounts receivable 840,000 (Record settlement of accounts receivable)
Dr Cash 35,000 / Cr Put option 35,000
The journal entries on 31 December 20x3 would be as follows:
Dr Put option 2,500
Dr Loss in time value 12,500
Cr Hedging reserve – equity 15,000
12. Dr Hedging reserve – equity 25,000 / Cr Sales 25,000
Problem 10.5
(1) Journal entries 1 October 20x4 (optional)
Dr Investment (AFS) 358,400 / Cr Cash 358,400
1 November 20x4
Dr Fair value reserves – equity 2,150 / Cr Investment (AFS) 2,150
31 December 20x4
Dr Investment (AFS) 6,750
Dr Forward contract 11,400
Dr Exchange loss on investment 12,000
Cr Fair value reserves – equity 18,750
Cr Gain on forward contract 11,400
Change in fair value of forward contract: 285,000 x (1.23 – 1.19) = $12,000
Dr Put option 3,630 / Cr Cash 3,630
31 March 20x5
Dr Fair value reserves – equity 8,470 * reversed out to I/S see last entry
Dr Exchange loss on investment 2,930
Dr Loss on forward contract 2,850
Cr Investment (AFS) 11,400
Cr Forward contract 2,850
Dr Cash 8,550 / Cr Forward contract 8,550
Dr Put option 6,570 / Cr Gain on put option 6,570
30 June 20x5
Dr Put option 7,950 / Cr Gain on put option 7,950
Dr Loss on investment (AFS)/ 9,600 Cr Investment (AFS) 9,600
Dr Investment (AFS) 2,850 / Cr Fair value reserves – equity 2,850
Dr Cash 18,150 / Cr Put option 18,150
Dr Cash 344,850 / Cr Investment 344,850
Dr Fair value reserves (equity) 19,450 / Cr Gain on hedging 19,450
Problem 10.6
1 December 20x1 The forward contract is nil.
31 December 20x2
Dr Forward contract 300,000
Dr Loss in time value 100,000
Cr Hedging reserve – equity 400,000
1 February 20x2
Dr Forward contract 400,000
Dr Loss in time value 100,000
Cr Hedging reserve – equity 500,000
30 March 20x2
Dr Loss on forward contract 600,000
Cr Forward contract 600,000
13. Dr Firm commitment 400,000 / Cr Gain on firm commitment 400,000
Dr Cash 16,900,000 / Cr Sales 16,900,000
Dr Hedging reserve 900,000
Cr Firm commitment 400,000
Cr Sales 500,000
Dr Cash 100,000 / Cr Forward contract 100,000
Problem 10.7 from 1 December 20x1 to 1 February 20x2 are the same as in P 9.6. 30 March 20x2
Dr Hedging reserve 400,000
Dr Time value (Interest component) (I/S) 200,000
Cr Forward contract 600,000 (Record:
Dr Cash 16,900,000 / Cr Sales 16,900,000
Dr Hedging reserve 500,000 / Cr Sales 500,000
Dr Cash 100,000 / Cr Forward contract 100,000
Problem 10.8
30 September 20x5 No journal entry required.
31 December 20x5
Dr Interest element (I/S) 3,251/ Cr Hedging reserve – equity 2,167 ; Cr Forward contract 1,084
31 January 20x6
Dr Interest element (I/S) 2,502
Dr Hedging reserve – equity 1,672
Cr Forward contract 4,174
Dr Inventory 292,000
Dr Hedging reserve 495
Cr Inventory 495
Cr Accounts payable 292,000
31 March 20x6
Dr Accounts payable 292,000
Dr Exchange loss on payable 1,100
14. Cr Cash 293,100
Dr Forward contract 357 / Cr Gain on forward contract 357
Dr Forward contract 4,900 / Cr Cash 4,900
31 December 20x5
Dr Hedging reserve -Equity 1,084 / Cr Forward contract 1,084
31 January 20x5
Dr Hedging reserve -Equity 4,174 / Cr Forward contract 4,174
Dr Inventory 292,000 Dr Inventory 5,258* Cr Hedging reserve 5,258 Cr Accounts payable 292,000
31 March 20x6
Dr Accounts payable 292,000 Dr Exchange loss on payable 1,100 /Cr Cash 293,100
Dr Forward contract 357 / Cr Gain on forward contract 357
Dr Forward contract 4,900 / Cr Cash 4,900
Problem 10.9
1 December 20x1 No journal entry is necessary.
31 December 20x1
Dr Forward contract 1,000,000 / Cr Gain on forward contract 1,00,000
Dr Loss on firm commitment 1,100,000 / Cr Firm commitment 1,100,000
1 March 20x2
Dr Forward contract 200,000 / Cr Gain on forward contract 200,000
Dr Loss on firm commitment 300,000 / Cr Firm commitment 300,000
Dr Accounts receivable 17,000,000 / Cr Sales 17,000,000
Dr Firm commitment 1,400,000 / Cr Sales 1,400,000
1 April 20x2
Dr Bank 17,600,000 / Cr Exchange gain 600,000 Cr Accounts receivable 17,000,000
Dr Loss on forward contract 800,000 / Cr Forward contract 800,000
Dr Cash 400,000 / Cr Forward contract 400,000
Problem 10.10
15. (1) Journal entries: 30/6/20x1
nil entry
31/12/20x1
Dr Forward contract 485 / Cr Hedging reserve (equity) 485
31/3/20x2
Dr Forward contract 254 / Cr Hedging reserve 254
Dr Inventory 108,300 / Cr Payable 108,300
Dr Hedging reserves 739 / Cr Inventory 739
30/6/20x2
Dr Exchange loss 400 Dr Payable 108,300 / Cr Cash 108,700
Dr Forward contract 261 / Cr Gain on forward contract 261
Dr Cash 1,000 / Cr Forward contract 1,000
(2) 31/12/20x1
Dr Loss (interest element) 291 Dr Forward contract 485 Cr Equity (spot element) 776
31/3/20x2
Dr Loss (interest element) 54 Dr Forward contract 254 / Cr Equity (spot element) 308
Dr Inventory 108,300 Dr Equity 1,084 / Cr Inventory (hedging gain) 1,084 Cr Payable 108,300
30/6/20x2
Dr Exchange loss 400 Dr Payable 108,300 / Cr Cash 108,700
Dr Forward contract 261 / Cr Gain on forward contract 261
Dr Cash 1,000 /Cr Forward contract 1,000
(2) B/S: Carrying value of inventory $107,561 $107,216 Income Statement 0 (345)
Problem 10.11
(1) Journal entries 31/12/20x1
Dr Loss on firm commitment 776 / Cr Firm commitment 776
Dr Forward contract 776 / Cr Gain on forward contract 776
Dr Interest portion 291 / Cr Forward contract 291
31/3/20x2
Dr Loss on firm commitment 308 / Cr Firm commitment 308
Dr Forward contract 308 / Cr Gain on forward contract 308
Dr Interest portion 54 / Cr Forward contract 54
Dr Inventory 108,300 / Cr Payable 108,300
Dr Firm commitment 1,084 / Cr Inventory 1,084
30/6/20x2
Dr Exchange loss 400 Dr Payable 108,300 / Cr Cash 108,700
Dr Forward contract 261 / Cr Gain on forward contract 261
Dr Cash 1,000/ Cr Forward contract 1,000
(2) There is no difference if there is no discounting of the future cash flows.
Problem 10.12
16. 30 June 20x3
Dr Interest expense 1,375,000 / Cr Bank 1,375,000
Dr Interest rate swap 576,573 / Cr Fair value adjustment (equity) 576,573
31 December 20x3
Dr Interest expense 1,500,000 / Cr Bank 1,500,000
Dr Bank 125,000 / Cr Interest receipt 125,000
Dr Interest rate swap 352,702 / Cr Fair value adjustment (equity) 352,702
30 June 20x4
Dr Interest expense 1,625,000 / Cr Bank 1,625,000
Dr Bank 250,000 / Cr Interest receipt 250,000
Dr Fair value adjustment (equity) 436,637 / Cr Interest rate swap 436,637
31 December 20x4
Dr Interest expense 1,550,000 / Cr Bank 1,550,000
Dr Bank 175,000 / Cr Interest receipt 175,000
Dr Fair value adjustment (equity) 253,800 / Cr Interest rate swap 253,800
30 June 20x5
Dr Interest expense 1,500,000 / Cr Bank 1,500,000
Dr Bank 125,000 / Cr Interest receipt 125,000
Dr Fair value adjustment (equity) 166,022 / Cr Interest rate swap 166,022
31 December 20x5
Dr Interest expense 1,450,000 / Cr Bank 1,450,000
Dr Bank 75,000 / Cr Interest receipt 75,000
Dr Fair value adjustment (equity) 72,816 / Cr Interest rate swap 72,816
Problem 10.13
(1) The hedged item was the forecasted cash flow of the anticipated transaction.
(2) October 20x1
Dr Margin deposit 150,000 / Cr Cash 150,000
31 December 20x1
Dr Futures contract 200,000 [(3.21 – 3.17) x 5,000,000] / Cr Hedging reserve 175,000 Cr Profit
or loss 25,000
28 February 20x2
17. Dr Futures contract 600,000 [(3.17 – 3.05) x 5,000,000] / Cr Hedging reserve 575,000 Cr Profit
or loss 25,000
31 March 20x2
Dr Futures contract 250,000 / Cr Hedging reserve 250,000
Dr Cash 15,500,000 / Cr Sales 15,500,000
Dr Cost of sales 15,000,000 / Cr Inventory 15,000,000
Dr Hedging reserve 1,000,000 / Cr Sales 1,000,000
Dr Cash 1,200,000 Cr Margin deposit 150,000 Cr Futures contract 1,050,000
(3) Without hedging With hedging Sales 15,500,000 16,500,000 COGS (15,000,000) (15,000,000)
Gross profit 500,000 1,500,000 Gain on futures contract 50,000 Net profit $500,000 $1,550,000
Problem 10.14 (1)
/10/x1
Dr Option contract 600,000 / Cr Cash 600,000
31/12/x1
Dr Loss in fair value of inventory 175,000 / Cr Inventory 175,000
Dr Loss in time value of option 125,000 / Cr Options contract 125,000
Dr Options contract 175,000 / Cr Gain in intrinsic value 175,000
28/2/x2
Dr Loss in fair value of inventory 575,000 / Cr Inventory 575,000
Dr Loss in time value of option 350,000 / Cr Options contract 350,000
Dr Options contract 575,000 / Cr Gain in intrinsic value 575,000
31/3/x2
Dr Loss in fair value of inventory 250,000 / Cr Inventory 250,000
Dr Loss in time value of option 125,000 / Cr Options contract 125,000
Dr Options contract 250,000 / Cr Gain in intrinsic value 250,000
Dr Cash 1,000,000 / Cr Option contract 1,000,000
Dr Cash 15,500,000 / Cr Sales 15,500,000
Dr Cost of sales 14,000,000/ Cr Inventory 14,000,000
(3) Without hedging With hedging Sales 15,500,000 15,500,000 COGS (15,000,000)
(14,000,000) Gross profit 500,000 1,500,000 Net gain on option contract 400,000 Loss on
inventory (1,000,000) Profit $500,000 $900,000
18. Problem 10.15
Transaction 1: Fair value hedge
Journal entries: 31 July 20x5
Dr Investment (AFS) 250,000 / Cr Cash 250,000 (Investment in AFS)
Dr Put option 3,000 / Cr Cash 3,000
30 September 20x5
Dr Loss on fair value (AFS) 30,000 / Cr Investment (AFS) 30,000
Dr Put option 25,000 / Cr Gain on put option 25,000
Dr Cash 28,000 / Cr Put option 28,000 (Close option position)
Transaction 2: (Cash flow hedge)
31 March 20x5
Dr Interest expense 900,000 / Cr Cash/bank 900,000
31 March
Dr Swap asset 666,273 / Cr FV adjustment (equity) 666,273
30 June 20x5
Dr Interest expense 1,000,000 / Cr Cash/bank 1,000,000
31 March
Dr Cash/bank 100,000 / Cr Interest expense 100,000
Dr Swap asset 477,931 / Cr FV adjustment (equity) 477,931
30 September 20x5
Dr Interest expense 1,100,000 / Cr Cash/bank 1,100,000
Dr Cash/bank 200,000 / Cr Interest expense 200,000
Dr FV adjustment (equity) 470,697 / Cr Swap asset 470,697
Transaction 3: Hedge of net investment
1 January 20x5 No entry required.
31 March 20x5
Dr Forward contract 22,400 Dr Interest component (P/L) 11,200 Cr FCTR (Equity) 33,600
30 June 20x5
Dr Forward contract 33,600 Dr Interest component (P/L) 11,200 Cr FCTR (Equity) 44,800
30 September 20x5
Dr Forward contract 29,120 Dr Interest component (P/L) 4,480 Cr FCTR (Equity) 33,600
19. 30 September 20x5
Income statement Change in FV of AFS (30,000) Gain on put option 25 ,000 Interest expense
(2,700,000) Interest component of forward contract (26,880)
Balance sheet
Equity FV Adjustment (swap) 673,507
Assets Available-for-sale 220,000 Forward contract 85,120 Swap asset 673,507
Equity FCTR 112,000*
Problem 10.16
Convert to SGD/USD rates
Dr Loss on time value (P/L) (0.0156-0.0107)*S$1.4m 6,860
Dr Forward contract (0.7353 – 0.7299)*S$1.4m 7,560
Cr Deferred gain (OCI) (0.7246 – 0.7143)*S$1.4m 14,420
31 Dec 2010 FX loss on firm commitment
Dr Loss on firm commitment (0.7576-0.7246)*S$1.4m 46,200 / Cr Firm commitment (payable) 46,200
Dr Forward contract (0.7752-0.7353)*S$1.4m 55,860 / Cr Gain on forward contract (P/L) 55,860
Dr Equipment (0.7576*S$1.4m) 1,060,640 / Cr Equipment payable 1,060,640
Dr Deferred gain (OCI) 14,420 Dr Firm commitment (payable) 46,200 Cr Equipment 60,620
June 2011
Dr FX loss on equipment payable 89,740 / Cr Equipment payable (0.8333-0.7692)*S$1.4m 89,740
Dr Equipment payable 1,166,620 / Cr Cash (US$1.4m x 0.8333) 1,166,620
Dr Forward contract (0.8333-0.7752)*S$1.4m 81,340 / Cr Gain on forward contract (P/L) 81,340
Dr Cash (0.8333-0.7299)*S$1.4m 144,714 / Cr Forward contract 144,714
31 Dec 2011
Dr Depreciation expense (1,076,880-76,860)/10 100,002 / Cr Accumulated depreciation – Equipment
100,002
Problem 10.17 Swap interest settlement table
30 June 2010
Dr Swap Asset/Liability 50,420 / Cr Swap fair value P/L (36,536*1.38) 50,420
31 Dec 2010
Dr Cash (7,500*1.32) 9,900 / Cr Swap interest income (7,500*1.32) or (7,500*1.34) 9,900
Dr Swap fair value P/L (41,250*1.32) 54,450 / Cr Swap Asset/Liability 54,450
31 Dec 2010 30 Jun 2011
20. Dr Swap interest income (1200*1.2) (or 1200*1.25) 1,440 / Cr Cash 1,440
Dr Swap fair value P/L (4,162*1.2) 4,994 / Cr Swap Asset/Liability 4,994
Current assets 8,000,000
Current liabilities 6,000,000
Non-current liability 9,623,803
Share capital 10,000,000
Retained earnings 1,500,991
Reserves –equity option 875,206
(b) 30% of bonds converted:
Date Coupon Interest Effective Interest CA of bond Bond discount
30/6/x2 150,000 236,230 9,535,418 464582
30% conversion -2,860,625 -139,375
(c) Journal entries 20x2 30/6/20x2
(1) Dr Interest expense 150,000
Dr Amortization of discount 86,230
Cr Cash 150,000
Cr Unamortized bond discount 86,230
(2) Dr Capital reserves 262,562
Dr Bond payable 2,860,625
Cr Share capital 3,123,187
31/12/20x2
Dr Interest expense 105,000
Dr Amortization of discount 61,870
Cr Cash 105,000
Cr Unamortized bond discount 61,870
Problem 9.2
PV of bond = $8,687,190
Debt component 9,303,126
Equity component 1,312,810
21. (1) Dr Bond payable 10,000,000
Dr Bond redemption expense 457,739
Cr Unamortized discount 696,874
Cr Cash 9,760,865
(2) Dr Capital reserve 539,135
Cr Cash 539,135
[To record the repurchase of the equity component: $10,300,000 - $9,760,865]
Problem 9.3
FV at 31/12/20x0: $1,019,964
FV at 31/12/20x1: $1,086,628
FV at 31/12/20x2: $1,095,316
31/12/20x0
Dr Investment (AFS) 1,019,964
Cr Cash 1,019,964
31/12/20x1
Dr Cash 85,000
Cr Investment 3,403
Cr Interest income 81,597
Dr Investment 70,067 / Cr Deferred gain -Equity 70,067
31.12.20x2: Dr Cash 85,000 /Cr Investment 3,675 /Cr Interest income 81,325
Dr Investment 12,363 /Cr Deferred gain - Equity 12,363
Dr Cash 438,126 / Cr Investment (AFS) 438,126 (Sale of 40% of bonds: $1,095,316 x 0.4))
Dr HTM 657,190 /Cr AFS 657,190
Problem 9.4
1 October 20x4: Dr Investment (AFS) 358,400 / Cr Cash 358,400
31 December 20x4: Dr Investment (AFS) 4,600 / Cr Fair value reserves – equity 4,600
Dr Dividends receivable 12,100 /Cr Dividend income 12,100
1 March 20x5: Dr Cash 12,050 /Dr Exchange loss on dividend 50 /Cr Dividends receivable 12,100
22. Problem 9.5
Effective interest rate: Per half- year 1.0587% Per annum 2.1174%
31-Dec-06
Prevailing interest rate 2% per half-year
Fair value (present value): $11,510,266
Payment: 180,000
Periods: 9
Future value: 12,000,000
30-Jun-07
Prevailing interest rate 2.5% per half-year
Fair value (present value): $11,139,584
Payment: 180,000
Periods: 8
Future value :12,000,000
HTM AFS FVPL
Dr Cash 180,000 180,000 180,000
Cr Unamortized premium 48,167
Cr MRPS 48,167 48,167
Cr Interest income 131,833 131,833 131,833
Dr Fair value loss $322,515
Cr MRPS $322,515
Dr Deferred loss $322,515
Cr MRPS $322,515
Problem 9.6
Show the journal entries in Co B's books for the year ended 31 Dec 20x6.
(1) Dr Cash 12,500,000
Dr Unamortized discount on debt 553,331
Cr Debt 12,000,000
Cr Equity Options 1,053,331
(2)Dr Interest expense 171,700
Cr Cash 120,000
Cr Unamortized discount 51,700
31 Dec 20x8
Dr Equity options (50% * 1,053,331) 526,666
Dr Debt 6,000,000
Cr Unamortized discount on debt 143,480
Cr Issued share capital 6,383,186
Problem 9.7
23. Journal entries 1/1/20x1
Dr Cash 10,000,000
Dr Unamortized bond discount 1,622,179
Cr Bond payable 10,000,000
Cr Capital reserve - Equity 1,622,179
31/12/20x1
Dr Interest expense 200,000
Dr Amortization of bond discount 140,517
Cr Cash 200,000
Cr Unamortized bond discount 140,517
1/1/20x3
Dr Bond payable 10,000,000 /Dr Debt settlement expense (P/L) 506,708/ Cr Cash 9,458,281/Cr Unamortized discount on bond
1,048,427
Dr Equity 3,041,719 / Cr Cash 3,041,719
Problem 9.8
1 July 20x1
Dr Held-to-maturity security (Bond A) 102,673
Dr Held-to-maturity security (Bond B) 100,000
Cr Cash 202,673
30 June 20x2
Dr Cash 12,000
Cr Interest income – Bond A 7,000
Cr Interest income - Bond B 5,000
Dr Interest income 840 / Cr Held-to-maturity – Bond A 840
30 June 20x2.
Dr Cash 103,719
Cr Bond 101,833
Cr Gain on sale of bond 1,886
Dr Available for sale security (at fair value) 101,794
Cr Held-to-maturity investment 100,000
Cr Fair value reserve (equity) 1,794
[Reclassification of Bond B from HTM to AFS as a result of ‘tainting’]
Problem 9.9
31 October 20x4
Dr Investment (AFS) 10,000
Cr Cash 10,000
31 December 20x4
Dr Fair value reserves – equity 1,000
Cr Investments (AFS) 1,000
24. 30 June 20x5
Dr Impairment loss 9,000
Cr Fair value reserve – equity 1,000
Cr Investments (AFS) 8,000
Problem 9.10
1 January 20x3
Dr Interest income 64,000 / Cr Interest receivable 64,000
Dr Impairment loss 326,749 /Cr Note receivable 326,749
31 December 20x3
Dr Cash 25,000 /Dr Note receivable 12,860 / Cr Interest income 37,860
31 December 20x4
Dr Cash 25,000
Dr Note receivable 13,889
Cr Interest income 38,889
Dr Cash 500,000
Cr Note receivable 500,000
Problem 9.11
1 Jan 2010 Purchase of convertible bonds
Dr Investment in Debt Security (2,600,000*1.4) 3,640,000
Dr Unamortized premium (75,255*1.4) 105,357
Dr Equity Options purchased (324,745*1.4) 454,643
Cr Cash (3,000,000*1.4) 4,200,000
30 Jun 2010 Coupon interest settlement
Dr Cash (39,000*1.38) 53,820
Dr Exchange loss 390
Cr Interest income (26,752*1.39) 37,185
Cr Unamortized premium (12,248*1.39) 17,025
31 Dec 2010 Coupon interest settlement
Dr Cash (39,000*1.32) 51,480
Dr Exchange loss 780
Cr Interest income (26,631*1.34) 35,686
Cr Unamortized premium (12,369*1.34) 16,574
Exchange loss on debt carrying amount
Dr Exchange loss 212,916
Cr Investment in Debt Security 212,916
Dr Exchange loss 25,840
Cr Equity options purchased 25,840
25. 30 Jun 2011 Coupon interest settlement
Dr Cash (39,000*1.2) 46,800
Dr Exchange loss 1,950
Cr Interest income (26,507*1.25) 33,134
Cr Unamortized premium (12,493*1.25) 15,616
31 Dec 2011 Coupon interest settlement
Dr Cash (39,000*1.3) 50,700
Cr Exchange gain 2,340
Cr Interest income (26,128*1.24) 32,399
Cr Unamortized premium (12,872*1.24) 15,961
Exchange loss on debt carrying amount
Dr Exchange loss 54,081
Cr Investment in Debt Security 54,081
Exchange loss on equity option
Dr Exchange loss 6,494
Cr Equity option purchased 6,494
(2)
K’s book
1 Jan 2010
Dr Cash 3,000,000
Cr Bond issued 2,600,000
Cr Unamortized premium 75,255
Cr Capital reserve – Equity options 324,745
30 Jun 2010 Coupon interest settlement
Dr Interest expense 26,752
Dr Unamortized premium 12,248
Cr Cash 39,000
31 Dec 2010 Coupon interest settlement
Dr Interest expense 26,631
Dr Unamortized premium 12,369
Cr Cash 39,000
30 Jun 2011 Coupon interest settlement
Dr Interest expense 26,507
Dr Unamortized premium 12,493
Cr Cash 39,000
26. 31 Dec 2011 Coupon interest settlement
Dr Interest expense 26,128
Dr Unamortized premium 12,872
Cr Cash 39,000
(3)(a)
A’s book (no conversion to equity)
30 June 2012 Coupon interest settlement
Dr Cash (39,000*1.28) 49,920
Dr Exchange loss 390
Cr Interest income (26,255*1.29) 33,869
Cr Unamortized premium (12,745*1.29) 16,441
Exchange gain on debt carrying amount
Dr Investment in Debt Security 52,258
Cr Exchange gain 52,258
Recognition of impairment loss
Dr Impairment loss 3,318,186
Cr Investment in Debt Security 3,318,186
(b)
A’s book (conversion to equity)
Dr Investment in equity security 441,274
Cr Investment in debt security 25,600
Cr Equity Options purchased (324,745*1.28) 415,674
Problem 9.12
(1) Entries in A’s book in SGD
1 Jan 2010 Purchase of convertible bonds
Dr FVOCI Debt Security (2,675,255*1.4) 3,745,357
Dr Equity Options purchased (324,745*1.4) 454,643
Cr Cash (3,000,000*1.4) 4,200,000
30 Jun 2010 Coupon interest settlement
Dr Cash (39,000*1.38) 53,820
Dr Exchange loss 390
Cr Interest income (26,752*1.39) 37,185
Cr FVOCI Debt Security (12,248*1.39) 17,025
31 Dec 2010 Coupon interest settlement
Dr Cash (39,000*1.32) 51,480
Dr Exchange loss 780
27. Cr Interest income (26,631*1.34) 35,686
Cr FVOCI Debt Security (12,369*1.34) 16,574
Exchange loss on debt carrying amount
Dr Exchange loss 212,916
Cr FVOCI Debt Security 212,916
Dr Deferred loss (OCI) 198,842
Cr FVOCI Debt Security 198,842
Dr Exchange loss 25,840
Cr Equity options purchased 25,840
30 Jun 2011 Coupon interest settlement
Dr Cash (39,000*1.2) 46,800
Dr Exchange loss 1,950
Cr Interest income (26,507*1.25) 33,134
Cr FVOCI Debt Security (12,493*1.25) 15,616
31 Dec 2011 Coupon interest settlement
Dr Cash (39,000*1.3) 50,700
Cr Exchange gain 2,340
Cr Interest income (26,128*1.24) 32,399
Cr FVOCI Debt Security (12,872*1.24) 15,961
Exchange loss on debt carrying amount
Dr Exchange loss 54,081
Cr FVOCI Debt Security 54,081
Recognition of FV change in OCI
Dr Deferred loss (OCI) 549,342
Cr FVOCI Debt Security 549,342
Exchange loss on equity option
Dr Exchange loss 6,494
Cr Equity option purchased 6,494
Total loss = 1,080,321
(3)(a)
A’s book (no conversion to equity)
30 June 2012 Coupon interest settlement
28. Dr Cash (39,000*1.28) 49,920
Dr Exchange loss 390
Cr Interest income (26,255*1.29) 33,869
Cr FVOCI Debt Security (12,745*1.29) 16,441
Exchange loss on debt carrying amount
Dr FVOCI Debt Security 53,766
Cr Exchange loss 53,766
Reclassification of deferred loss
Dr Impairment loss 748,312
Cr Deferred loss (OCI) 748,312
Recognition of impairment loss
Dr Impairment loss 2,676,225
Cr FVOCI Debt Security 2,676,225
Impairment loss in SGD (2,676,725)
(b) A’s book (conversion to equity)
Dr Investment in equity security 480,243
Cr Investment in debt security 25,600
Cr Equity Options purchased (324,745*1.4) 454,643
Problem 9.13
(1) Entries in A’s book in SGD
1 Jan 2010 Purchase of convertible bonds
Dr Trading Debt Security (2,675,255*1.4) 3,745,357
Dr Equity Options purchased (324,745*1.4) 454,643
Cr Cash (3,000,000*1.4) 4,200,000
30 Jun 2010 Coupon interest settlement
Dr Cash (39,000*1.38) 53,820
Dr Exchange loss 390
Cr Interest income (26,752*1.39) 37,185
Cr Trading Debt Security (12,248*1.39) 17,025
31 Dec 2010 Coupon interest settlement
Dr Cash (39,000*1.32) 51,480
Dr Exchange loss 780
Cr Interest income (26,631*1.34) 35,686
29. Cr Trading Debt Security (12,369*1.34) 16,574
Exchange loss on debt carrying amount
Dr Exchange loss 212,916
Cr Trading Debt Security 212,916
Exchange loss (212,916)
Recognition of FV change in P/L
Dr Fair value gain/loss - trading debt 198,842
Cr Trading Debt Security 198,842
Dr Exchange loss 25,840
Cr Equity options purchased 25,840
30 Jun 2011 Coupon interest settlement
Dr Cash (39,000*1.2) 46,800
Dr Exchange loss 1,950
Cr Interest income (26,507*1.25) 33,134
Cr Trading Debt Security (12,493*1.25) 15,616
31 Dec 2011 Coupon interest settlement
Dr Cash (39,000*1.3) 50,700
Cr Exchange gain 2,340
Cr Interest income (26,128*1.24) 32,399
Cr Trading Debt Security (12,872*1.24) 15,961
Exchange loss on debt carrying amount
Dr Exchange loss 54,081
Cr Trading Debt Security 54,081
Recognition of FV change in P/L
Dr Fair value gain/loss - trading debt 549,342
Cr Trading Debt Security 549,342
Exchange loss on equity option
Dr Exchange loss 6,494
Cr Equity option purchased 6,494
Total loss = 1,080,321
30. (3)(a) A’s book (no conversion to equity)
30 June 2012 Coupon interest settlement
Dr Cash (39,000*1.28) 49,920
Dr Exchange loss 390
Cr Interest income (26,255*1.29) 33,869
Cr Trading Debt Security (12,745*1.29) 16,441
Exchange loss on debt carrying amount
Dr Trading Debt Security 53,766
Cr Exchange loss 53,766
Recognition of fair value loss
Dr Fair value gain/loss – trading debt 2,676,225
Cr Trading Debt Security 2,676,225
(b) A’s book (conversion to equity)
Dr Investment in equity security 480,243
Cr Investment in debt security 25,600
Cr Equity Options purchased (324,745*1.4) 454,643
Problem 9.14
A’s book (reclassification from FVOCI to amortized cost)
1 Jan 2012
Reclassify accumulated deferred loss to investment in debt security
Dr Investment in debt security 748,312
Cr Deferred loss (OCI) 748,312
Reclassify unamortized premium of debt security
Dr Unamortized premium (25,527*1.3) 33,185
Cr Investment in debt security 33,185
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41. LỘ TRÌNH TOÀN DIỆN THI TUYỂN VÀO BIG4
Road to Big4 là khóa học giúp bạn tổng hợp nhanh các kiến thức trọng tâm và kỹ năng cần thiết để thi đậu Big4
cũng như kỹ năng làm việc tại Big4, (Step 2, 3, 4 trong lộ trình ở trên). Cụ thể:
• Nội dung khóa học:
✓ ACCOUNTING (10 buổi) học full giáo trình môn F3 - Accounting ACCA, kết hợp học offline và sửa
bài online cho tất cả các chuyên đề để học viên có thể ôn tập kỹ ở nhà tùy theo tốc độ của mình. Đặc
biệt, giảng viên sẽ chia sẻ rất nhiều case study thực tế trong quá trình làm Big4, dạy cách làm Cash flow
và hợp nhất trên Excel theo phong cách Big4, so sánh VAS- IFRS để học viên có cái nhìn toàn diện về
chuẩn mực. Sau học phần này học viên tự tin thi đậu môn F3 cũng như môn CFAB – Accounting.
✓ AUDITING (7 buổi) học full giáo trình môn CFAB – Assurance - Giáo trình CFAB Assurance là 1
giáo trình cực kỳ hay và cô đọng, không quá khó như ACCA F8 và chiếm tỷ lệ lớn trong đề thi Big4
trong kỳ Intern vừa qua. Để tăng hiệu quả khóa học, giảng viên đã quay video dịch toàn bộ cuốn sách và
sửa toàn bộ bài tập để học viên chủ động trong việc học tập, xem và chuẩn bị bài ở nhà. Khi tới lớp học
viên được kiểm tra lại kiến thức và chia sẻ các tình huống, các case study thực tế trong Big4. Sau học
phần này học viên hoàn toàn tự tin để thi đậu môn CFAB Assurance.
✓ KIỂM TOÁN PHẦN HÀNH (4 buổi) học 4 phần hành cơ bản: Cash, Fixed asset, Expenses &
Prepayment - Trải nghiệm thực tế vị trí Intern tại khóa học.
✓ TAX (4 buổi) – ACCA F6: học 4 loại thuế quan trọng là CIT, PIT, VAT, FCT nhằm mở rộng cơ hội cho
các bạn apply bộ phận Tư vấn Thuế của các Big;.
✓ CV, ESSAY (1 buổi) hướng dẫn viết CV và sửa CV cho riêng từng bạn, hướng dẫn kỹ năng viết essay.
✓ GROUP INTERVIEW (2 buổi) 1 buổi sẽ thực hiện theo phong cách phỏng vấn của EY và PWC - Social
case, 1 buổi sẽ thực hiện theo phong cách của Deloitte và KPMG - Technical case.
✓ FINAL INTERVIEW (1 buổi) mô phỏng vòng phỏng vấn Final 1-1 trong Big4.
• Thời lượng: 29 buổi/ khóa
• Giảng viên: Các anh chị đã và đang làm BIG4 (vị trí Senior đến Manager, Director) giảng dạy từng
chuyên đề phù hợp. Ngoài ra, Các anh chị sẻ chia sẻ kinh nghiệm tuyển dụng, việc làm tại các nơi làm
việc
• Học phí: 5.000.000đ (Hỗ trợ đóng thành 2 đợt)
• Đối tượng: Các bạn sinh viên (Kế toán, Kiểm toán, Tài chính, Kinh tế, Ngân hàng, thậm chí là ngôn
ngữ) có mong muốn thực tập và làm việc tại Big4 đều có thể tham gia khóa học này.
ROAD TO BIG4 là gì?
Fanpage: facebook.com/acethefuture.center - Website: ace-big4.edu.vn - Hotline: 0908.216.102
43. HOA BIG4 – UEL, BUH
Đỗ Thị Thanh Hà,
Deloitte
Lương Thị Ánh Tuyết,
EY
Tháng 9 mùa thi, bận như ca sĩ chạy sô. Cũng may những ngày đó có 1 chốn dung thân,
thời gian ở ACE còn nhiều hơn ở nhà. Điều em phải bỏ ra chỉ là thời gian, nhưng điều anh
bỏ ra là những gì… Là chi phí cơ hội của nghỉ Big. Là những buổi dạy free cho em và các
bạn. Anh bảo nếu ACCA chỉ dành cho những bạn nhà giàu, vậy các bạn nhà nghèo thì
sao… và anh muốn chung tay xóa bớt ranh giới giàu nghèo bằng việc phổ cập F3, F8. Anh
sẵn sàng để dành học phí thu sau, thậm chí là free cho những bạn như em. Em nhớ hoài cảm
giác biết tin mình pass, vừa vui, vừa buồn, không biết phải diễn tả cảm giác đó thế nào…
v
CẢM NHẬN HỌC VIÊN
Thành công không phải là đích đến mà nó là cả một quá trình. May mắn thay quá trình
của em có anh Linh, chị Bích và có 1 người bạn đồng hành cùng em – Hà.
Em có được kết qủa này không thể nào quên đi sự giúp đỡ tận tình của anh. Đối với
em, anh không chỉ là người thầy mà còn là người anh, người mà em có thể chia sẻ mọi
khó khăn, trong lúc em áp lực nhất, chính những lời động viên chia sẻ từ anh tiếp thêm
động lực rất rất nhiều cho em. Em nhớ đêm em rớt De, anh đã nói với em rất nhiều,
khiến em khóc…lúc đó em chỉ nghĩ phải cố nhiều hơn nữa. Và rồi em đã làm được…
Có thể không ít người nghĩ rằng “ACE mới mở chắc chất lượng chưa đảm bảo đâu”.
Nhưng khi tôi quyết định theo học ở đây tôi càng thấy rõ ràng ACE là nơi đáng để mình
gửi gắm. Anh Linh bỏ công sức mời những người kinh nghiệm trong lĩnh vực Audit, Thuế
và cả kỹ năng phognr vấn về chia sẻ. Vì vậy không những thêm kiến thức mà chúng tôi
còn tự tin hẳn lên – đó là vũ khí quan trọng nhất để chinh phục nhà tuyển dụng. Ngoài ra
tôi muốn nhắn nhủ với đồng môn UEL-er, đây là lựa chọn tốt nhất cho các bạn. Nhiều bạn
từ UEH còn bỏ công sức xuống đây học thì huống gì mình gần như thế mà lại không.
Nguyễn Thị Hà,
Deloitte
44. HOA BIG4 – FTU2, TDTU
CẢM NHẬN HỌC VIÊN
Cảm ơn anh Linh và ACE rất nhiều. Không có anh Linh thì chắc em
cũng không biết Big4 là gì.
Senior thì kiến thức và kinh nghiệm thực tế khỏi bàn rồi mà khả năng
truyền đạt và giảng dạy cảu anh mấy khóa sau em học chất lượng
lắm lắm. Anh còn nhiệt tình đốc thúc rồi chỉ rồi kêu rồi cho em học
quá trời thứ để em có những trang bị tốtn hất cho đợt thi tuyển. Chắc
cả đời em may mắn lắm mới gặp được một người thầy có tâm như
anh...
Cảm ơn anh Khánh. Em thích lắm bài thuyết giảng về mindset học
tiếng anh của anh, rồi cả lý do, động lực và hoài bão của các anh chị
để tạo nên & xây dựng ACE nữa.
Trần Ngọc Duyên, EY
Hồ Xuân Thủy, PwC
Giang Yến Phương, KPMG
Anh chị ở đây rất nhiệt tình với học viên luôn. Mình như có thểm 1
mentor riêng cho nghề nghiệp và các thắc mắc chưa biết hỏi ai.
Qua đây em gửi lời cảm ơn đến anh Linh và chị Bích đã cho em
những lời khuyên cũng như những động viên em trong kỳ tuyển thực
tập sinh Kiểm toán vừa rồi ạ.
Chúc ACE có thêm nhiều khóa học chất lượng!!!
Mọi người đã dạy tận tình để giúp em có sự chuẩn bị tốt nhất về kiến
thức cũng như kỹ năng cho kỳ Big4 Internship này.
Em cảm ơn anh Linh, anh Toàn, anh Quân cùng những anh chị khác
rất nhiều.
Love you all <3
45. HOA BIG4 – UEH
Võ Thị Mỹ Linh,
EY
CẢM NHẬN HỌC VIÊN
Biết đến ACE đối với mình quả thật là may mắn. Tại đây mình được học đủ thứ từ F3,
F6, F8, khóa Excel cho kiểm toán đến Khóa Kiểm toán phần hành, rất hữu ích trong
quá trình thi tuyển và cả lúc đi thực tập sau này nhé. Không những vậy mình còn được
sửa CV và hướng dẫn cho cả vòng Personal Interview nữa. Đó là một sự chuẩn bị đầy
dủ, kĩ lưỡng mà mình nghĩ chắc chỉ ở ACE mới có quá.
Các anh chị ở ACE thì cực kỳ thân thiện và nhiệt tình, quan tâm tới học viên lắm luôn
<3 Tất cả những điều được học ở ACE giúp ích rất nhiều cho mình trong quá trình thi
Big4 và công việc sau này. Cảm ơn ACE thật nhiều nhé!
Nguyễn Ngọc Khánh Ngân,
EY
Mình biết đến ACE như một cái duyên hiếm có. Trước đây Big4 với mình là cái gì đó
rất xa vời, mình cũng không hề đặt muc tiêu Big4. Rồi học kỳ này mọi người ai cũng
tươm tất hành trang chuẩn bị chiến BIG…còn mình thì không có gì. Cũng chạnh lòng
chứ. ACCA học phí quá cao, thời gian lại quá gấp. Chính khoảnh khắc này ACE đã
đến với mình – tình cờ một cách kinh khủng. Một tháng chạy đua với thời gian, anh
Linh lo cho tụi mình từ A-Z, không xót vòng nào, tận tình giải đáp mọi thắc mắc.
ACE như chiếc chìa khóa thần kỳ mở lối cho mình… Cảm ơn ACE, anh Linh, cảm ơn
định mệnh đã đưa ta đến với nhau
Thái Thị Mỹ Anh,
Deloitte
ACE – Nơi cho tôi niềm tin, động lực phát triển bản thân.
Tình cờ và may mắn mình tham gia minigame tại ACE và được anh chị tận tình hướng dẫn
ôn tập để thi BIG4. Nhờ đó mà có thể pass được các vòng thi technique của các BIG.
Nếu bạn, em nào có ý định thi BIG4 thì mình chỉ muốn giới thiện các bạn về ACE. Nơi đã
hỗ trợ mình rất nhiều từ kiến thức đến đam mê, giúp mình có thêm động lực, khích lệ bản
thân mình đạt được mục tiêu.
Đặc biệt cảm ơn anh Linh luôn tạo điều kiện cho tụi em có thể hoàn thiện đầy đủ kỹ năng
để thi BIG.