On 1 January 2011 Oxygen Limited purchased a debt instrument for its fair value of Rs. 500,000.

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On 1 January 2011 Oxygen Limited purchased a debt instrument for its fair value of Rs. 500,000. It had a principal amount of Rs. 550,000 and was due to mature in five years.

The debt instrument carries fixed interest of 6% paid annually in arrears and has an effective interest rate of 8%. It is held at amortized cost.

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At what amount will the debt instrument be shown in the statement of financial position of Oxygen Limited as at 31 December 2012?

Related Book For answer-question

Intermediate Accounting

ISBN: 978-0078025839

9th edition

Authors: J. David Spiceland, James Sepe , Mark Nelson , Wayne Thomas

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Posted Date: Dec 30, 2020 12:57 AM

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On 1 January 2011 Oxygen Limited purchased a debt instrument for its fair value of Rs. 500,000.

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Intermediate Accounting

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