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I have been trying to find out how does the accured axpensses and amortization should be recorded in financial statements. Let's say Roche Group (DEU) issues
2,000 convertible bonds at the beginning of 2011. The bonds have a four-year term with
a stated rate of interest of 6 percent, and are issued at par with a face value of €1,000
per bond (the total proceeds received from issuance of the bonds are €2,000,000). Interest
is payable annually at December 31. Each bond is convertible into 250 ordinary shares
with a par value of €1. The market rate of interest on similar non-convertible debt is
9 percent.
Question: How does it should be recorded in the statement in each year?
2,000 convertible bonds at the beginning of 2011. The bonds have a four-year term with
a stated rate of interest of 6 percent, and are issued at par with a face value of €1,000
per bond (the total proceeds received from issuance of the bonds are €2,000,000). Interest
is payable annually at December 31. Each bond is convertible into 250 ordinary shares
with a par value of €1. The market rate of interest on similar non-convertible debt is
9 percent.
Question: How does it should be recorded in the statement in each year?