Issue in financial reporting

ISSUE IN FINANCE
REPORTING

TABLE OF CONTENTS
TABLE OF CONTENTS................................................................................................................2
QUESTION 1..................................................................................................................................1
QUESTION 2..................................................................................................................................3
QUESTION 3..................................................................................................................................4

QUESTION 1
1
Amount of financial Liability
PV of the principal 2666989
PV of interest 249758
Total financial liability 2916747
Total Funds 3000000
less : Liability 2916747
Equity component 83253
Convertible notes
Financial Liability 2916747
Equity component 83253
2.
Amortisation schedule
Year Opening balance Interest
@4%
Closing
balance
0 2916747
1 2916747 116670 2800077
2 2800077 112003 2688074
3 2688074 107523 2580551
Total amortisation
cost
336196
3.
2020 2021 2022 2023
1