On 1 July 2020, Safari Ltd issued 10 000 5% debentures at a price of R100 each.
Question:
On 1 July 2020, Safari Ltd issued 10 000 5% debentures at a price of R100 each. The debentures mature after 3 years, at a premium of 5%. The initial transactions costs were R7500. These debentures are not held for trading. Safari Ltd purchased 12 000 ordinary shares in Drive Ltd for R75 per share, on 1 October 2019. These shares are held at fair value (OCI). The initial transaction costs were R2000. Due to the Covid-19 pandemic, the fair value of the shares plundered tremendously during 2020. The following fair values were available: 31 December 2019 R90 per share 31 December 2020 R25 per share Thank you, Final Year Clerk What is the amount to be recognized as a fair value adjustment (P+L)/Premeasurement expense (P+L), on 31 December 2020? Type your answer in decimal, where needed e.g.: 0,25. Type the decimal by means of a comma. General journal from2019 to 2020.
