Simba (Pty) Ltd purchased debentures in Town (Pty) Ltd on 1 January 2021 at a...
60.1K
Verified Solution
Link Copied!
Question
Accounting
Simba Pty Ltd purchased debentures in Town Pty Ltd on January at a fair value of R The face of the debentures is R and interest is paid annually in arrears at a coupon rate of per annum. The debentures will be redeemed at a premium of R on December The subsequent fair values of the debentures were as follows: December and January December and January The debentures have never been creditimpaired and there have been no significant increases in the credit risk of the debentures since their initial recognition. Expected credit losses were estimated as: The debentures were classified at amortised cost on initial recognition but need to be reclassified to fair value through other comprehensive income FVOCIdebt The reason for the reclassification is that on September Revolution purchased another business, which was immediately, tasked with managing the debentures as part of one of its portfolios of assets. The portfolio is managed to simply collect the contractual cash flows. Task: Show the journals for the year ended December and December Marks 
Simba Pty Ltd purchased debentures in Town Pty Ltd on January at a fair value of R
The face of the debentures is R and interest is paid annually in arrears at a coupon rate of per annum.
The debentures will be redeemed at a premium of R on December The subsequent fair values of the
debentures were as follows:
December and January
December and January
The debentures have never been creditimpaired and there have been no significant increases in the credit risk of
the debentures since their initial recognition. Expected credit losses were estimated as:
The debentures were classified at amortised cost on initial recognition but need to be reclassified to fair value
through other comprehensive income FVOCIdebt The reason for the reclassification is that on September
Revolution purchased another business, which was immediately, tasked with managing the debentures as part of
one of its portfolios of assets. The portfolio is managed to simply collect the contractual cash flows.
Task:
Show the journals for the year ended December and December
Marks
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.