How are gains and losses from extinguishment of a debt classified in the income statement? What disclosures are required of such transactions?

Q: Describe the accounting for refund liabilities.

A: Liabilities:   The liabilities are the amount of money which a business has to pay to the outside…

Q: How do IFRS and U.S. GAAP differ with respect to the classification of debt that is expected to be…

A:

Q: How will the lender of the promissory note record the note on its books? as an expense as revenue…

A: Revenue: This is the income of a firm during an accounting period. The income is recognized as and…

Q: Explain how to account for the impairment of an available-for-sale debt investment.

A: Debt Investment:   A debt investment involves loaning out the money to an institution in exchange…

Q: What is the general purpose of financial disclosures of financial statements?

A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…

Q: How should discount on bonds payable be reported on the financial statements? Premium on bonds…

A: Concept: A premium on bonds occurs if, the bonds are issued at a high price than the face value. On…

Q: Interest revenue for debt investments at fair value through other comprehensive income

A: IFRS 9 - Financial instruments deals with the calculation of interest income on debt investments.

Q: Identify the underlying characteristics of debt instruments and describe the basic approach to…

A: Debt:   It refers to the money that is owed or due to outsiders by the organization.

Q: Distinguish between financial liabilities and non-financial liabilities.

A: Liabilities are defined as the amount of money which is owed by a firm in exchange for goods and…

Q: Explain in detail what is debt or debt financing? Examples

A: In a debt arrangement, one party is allowed to borrow some amount from other party as per given…

Q: The course concerned with debtors is *

A: Option (a). Revenues is the correct answer

Q: Understand the accounting for investments in debt securities

A: Debt securities are the financial instruments which entitle the holder of such securities a fixed…

Q: What are the differences between a debtor and a creditor?

A: Creditor: Creditor is a person or a company who has provided fund or loan, and hence, has a claim…

Q: describe the fi nancial statement presentation of and disclosures relating to debt

A: A single line component of the cumulative amount of a long-term firm's liability due after one year…

Q: what reporting categories are used to account for debt investments?

A:

Q: Is any special accounting treatment required for the assigning of accounts receivable in general as…

A: Accounts receivable: Accounts receivable refers to the amounts to be received within a short period…

Q: debt

A: Cost of debt can be defined as the rate of interest which a company incurs on its debts. The cost of…

Q: How are debt and equity securities reported?

A: Investment securities are bought by individuals for the primary purpose of investment and long-term…

Q: Must obligations be known contractual debts in order to be reported as liabilities?

A: Liabilities: The claims creditors have over assets or resources of a company are referred to as…

Q: Where on the financial statements is an unrealized holding gain or loss on available for sale debt…

A: Available for sale debt investment is the kind of investment which is made with a purpose of sale…

Q: Demonstrate how to identify and account for debt investments classified for reporting purposes as…

A: A debt security is a type of investment tool in which the bonds are issued by a corporation or the…

Q: What is a debtor

A: Solution:- Debtor meaning as follows under:-

Q: Explain Types of Debt Instruments

A: Answer: Debt instrument is like a tool a company may use in capital raising. It allows the holders…

Q: How shall an entity subsequently measure financial liabilities?  Is IFRS measurement of financial…

A: Financial liabilities can be measured at amortized cost by using effective interest method and it…

Q: Explain how to account for the impairment of held-to-maturity debt security.

A: Held to maturity securities are those securities which are purchased to be held till maturity…

Q: How should a debt callable by the creditor be reported inthe debtor’s financial statements?

A: Liabilities: The claims creditors have over assets or resources of a company are referred to as…

Q: Does the deductibility of an expense or loss follow accounting practice?

A: The accounting practice is the practice of recording the day-to-day financial transactions of the…

Q: What are debt issue costs and how should they be reported?

A:

Q: You are required to prepare: (a) an adjusted Debtors Control Account; (b) a statement to reconcile…

A: Adjusted Debtors control account     Dr Particulars $ Particulars $ Cr   To Balance b/d…

Q: Account of a debtor must be written off as irrecoverable..what is a document of this transaction?

A: The transactions of the company will be analyzed by the management, and it will be recorded in…

Q: Demonstrate how to identify and account for debt investments classified forreporting purposes as…

A: A debt security is a type of investment tool in which the bonds are issued by a corporation or the…

Q: Describe the key characteristics of a debt investment and demonstrate how to account for a purchase…

A: Debt Instrument:   A debt instrument is a financial instrument that enables the issuer of the…

Q: What are the essential characteristics of liabilities for purposes of financial reporting?

A: LiabilitiesLiabilities are referred to as the obligations of the business towards the creditors for…

Q: Demonstrate how to identify and account for debt investments classified for reporting purposes as…

A: Debt securities: The financial instruments which are bought by investors, or corporations, or mutual…

Q: What is meant by Provision for Discount on Debtors and Reserve for Discount on Creditors.

A: Provision for discount on debtors: Discount is allowed for debtors when payment is made with in…

Q: Due to banks Deposits from customers Other liabilities Subordinated debt Taxation classify it into…

A: current liabilities - current liabilities should be repaid by the company within one year. examples…

Q: On a balance sheet, what valuation must be reported for debt securities classified as…

A: Balance sheet: A balance sheet prepared after the income statement represented organization assets,…

Q: What adjustment must be made at the end of the period for trading debt investments and…

A:

Q: What does the disclosure note for debt includes?

A: Debt securities: The financial instruments which are bought by investors, or corporations, or mutual…

Q: Which of the following is reported as part of a company's current debts?

A: A dividend represents the distribution of profit among the shareholders of the company. It is…

Q: Identify and describe the principal kinds of debt securities.

A: Business needs funds to operate the activities. Issuing securities is one of the ways to collect the…

Q: Describe the method of determining the Cost of Debt?

A: The cost of debt is the profit a business offers its debtors and creditors. These capital suppliers…

Q: Describe the accounting for the extinguishment of debt.

A:

Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.