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excluding transaction costs) At fair value Gains or losses on changes in fair value recognised in Profit or Loss. Liabilities at amortised cost Fair value plus transaction costs (transaction costs amortised over term via effective interest rate) At amortised cost, using the effective interest method. Effective interest recognised in Profit or Loss. 18,2%
27CLASS EXAMPLE 9: FINANCIAL LIABILITIES S Ltd issues a 5% R100 000 debenture @ 97% on 1 January 20x1. The debenture is redeemable at par in 5 equal annual instalments starting 31 December 20x1.CLASS EXAMPLE 9 (SUGGESTED SOLUTION)
288. Presentation and disclosureDISCLOSURE & PRESENTATION Accounting literature Disclosure Statement of financial position Textbook 542 (ignore 9.4) Statement of comprehensive income Presentation Offsetting a financial asset and a financial liability Statement of financial position Statement of comprehensive income Statement of cash flows Present only the real cash flows Statement of financial position The carrying amount of each of the categories of financial assets/ financial liabilities shall either be presented on the face of the statement of financial position or disclosed in the notes Financial asset at fair value through profit and loss showing separatelyThose mandatorily measured at fair value in terms of IFRS 9Those designated to this category at initial recognitionFinancial asset at fair value through OCI showing separately Those mandatorily measured at fair value in terms of IFRS 9Those designated to this category at initial recognitionFinancial assets measured at amortised cost showing the Effective interest rate Financial Liability measured at amortised cost showing the Effective interest rate Repayment terms When the financial liability is repayable Do class example 12
29Financial asset at fair value through profit and loss showing separatelyThose that meet that definition of held for tradingThose designated to this category at initial recognitionStatement of comprehensive income Nett gains or nett losses on designated oFinancial assets and liabilities designated at fair value through profit and loss oFinancial assets and liabilities classified at fair value through profit and loss oFinancial assets designated at fair value through other comprehensive income oFinancial assets classified at fair value through other comprehensive income oFinancial assets measured at amortised cost oFinancial liabilities measured at amortised cost Total Interest revenue and total interest expense on oFinancial assets measured at amortised cost oFinancial assets classified as at fair value through other comprehensive income
30CLASS EXAMPLE 10: PRESENTATION OF FINANCIAL INSTRUMENTS The following table provides a summary of the various financial instruments ABC Ltd has as at 31 December 20x9. Please use the information provided and prepare the relevant sections of ABC’s