Tamarisk Incorporated issued $0.44 million of 7.25%, 10-year bonds on July 1, 2016 at face value. Interest is
payable each December 31. The company has chosen to apply the fair value option in accounting for the bonds. A risk assessment at December 31, 2017 shows that Tamarisk's credit risk has increased, and as a result of the increased credit risk, the fair value of the bonds is $396,000 on that date.
Prepare the company's journal entries on December 31, 2017, if Tamarisk follows ASPE.
Prepare the company's journal entries on December 31, 2017, if Tamarisk follows IFRS 9.
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