IAS and IFRS

This query is : Resolved

pooja (Querist)
Follow

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....

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
Follow

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.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Sharang Sanjay Mangalekar

saurabh sawlani

deepak

J.Vijai

Vivekanand Sagar

Subscribe Now

IAS and IFRS

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA