IAS and IFRS
This query is : Resolved
14 February 2011
XYZ Ltd. purchases a debt Instrument with 5 years remaining to maturity for its fair value of Rs.1000 (including transaction cost). The Instrument has principal Amount of Rs. 1250/- and carries fixed Intrest of 4.7% i.e. paid annually. XYZ Ltd. recognised Rs 58.75 as Intrest revenue each year. Comment on Management's action... M not able to get from which IAS/ IFRS this ques is....
14 February 2011
As per IFRS , financial assets held to maturity is to be valued intially at fair value. In the subsequent year assets has to be valued at amortised cost less impairment loss.
Fair value is calculated based on present value. Difference between the fair value and actual value is charged to profit and loss account.
As per above interest to be calculated on Rs. 1250 i.e. Rs. 58.75
Diffrene between interest as per market and RS. 58.75 is to be deducted from amortised cost of Rs. 1000.
Fair value is calculated based on present value. Difference between the fair value and actual value is charged to profit and loss account.
As per above interest to be calculated on Rs. 1250 i.e. Rs. 58.75
Diffrene between interest as per market and RS. 58.75 is to be deducted from amortised cost of Rs. 1000.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Reopen of assessment proceeding
- TDS on Consultancy- Non DTAA
- Depreciation of fixed assets- coop housing society in mumbai
- COMMERCIAL INVOICE FOR MATERIAL AND FREIGHT
- Gift Received from nonblood relative
- Management System (IMS)
- Foreign lottery ticket bought online from India: legality, tax and consequences
- Reprocessing of rectification order AY 2025-26
- FTS Taxable under 115A
- Tax Audit u/s 44AB for Transport Business A proprietorship is engaged in transportation business and
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
