1. Examine the long-term borrowings in AFs balance sheet and the related note (32.2.2). Note that AF...
Question:
1. Examine the long-term borrowings in AF’s balance sheet and the related note (32.2.2). Note that AF has convertible bonds outstanding that it issued in 2013. Prepare the journal entry AF would use to record the issue of convertible bonds.
2. Prepare the journal entry AF would use to record the issue of the convertible bonds if AF used U.S. GAAP.
3. AF does not elect the fair value option (FVO) to report its financial liabilities. Examine Note 35.3 “Market value of financial instruments.” If the company had elected the FVO for all of its debt measured at amortized cost, what would be the balance at December 31, 2017, in the fair value adjustment account?
Intermediate Accounting
ISBN: 978-0470161012
9th Canadian Edition, Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.