Hanover Enterprise Limited (HEL) issued $6,000,000 convertible debentures at January 1, 2019. The debentures have a four-year
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Question:
Hanover Enterprise Limited (HEL) issued $6,000,000 convertible debentures at January 1, 2019. The debentures have a four-year term, and interest is payable annually in arrears at a nominal annual interest rate of 10% percent. When the debentures were issued, the prevailing market interest rate for similar debt without conversion options was 14 %.
The following discount rates are available:
End of year PVIFA 10% PVIFA 14%
Year 1 0.9091 0.8772
Year 2 0.8264 0.7695
Year 3 0.7513 0.6750
Year 4 0.6830 0.5921
Required:
In relation to the convertible debentures disclosed above, prepare extracts of the entity’s statement of profit or loss and statement of financial position for the year ended December 31, 2012.
Posted Date: