Port Enterprise Limited (PEL) 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 simila...

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Port Enterprise Limited (PEL) issued $6,000,000 convertible debentures at January 1, 2019. The debentures have a four-year

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Port Enterprise Limited (PEL) 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 13 %.

The following discount rates are available:

End of year	PVIFA 10%	PVIFA 13%
Year 1	0.9091	0.8850
Year 2	0.8264	0.7831
Year 3	0.7513	0.6931
year 4	0.6830	0.6133

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: Nov 14, 2021 03:26 PM

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Port Enterprise Limited (PEL) issued $6,000,000 convertible debentures at January 1, 2019. The debentures have a four-year

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