注会-会计英语讲义(7)

会计英语基础讲义

31 December 20X3：

(1) Entered into a speculative interest rate option costing $10,000 on January 20X3 to borrow $6,000,000 from AB Bank commencing 31 March 20X5 for 6 months at 4%. The value of the option at 31 December 20X3 was $15,250.

(2) Purchased 6% debentures in FG Co on 1 January 20X3 (their issue date) for

$150,000 as an investment. Ellesmere Co intends to hold the debentures until their redemption at a premium in 5 year’s time. The effective rate of interest of the bond is 8.0%.

(3) Purchased 50,000 shares in ST Co on 1 July 20X3 for $3.50 each as an investment. The share price on 31 December 20X3 was $3.75.

Required

Show the accounting treatment and relevant extracts from the financial statements for the year ended 31 December 20X3. Ellesmere Co only designates financial assets

as at fair value through profit or loss where this is unavoidable.

Notes：

1. Interest rate option： this is a derivative（衍生金融工具） and so it must be treated as at fair value through profit or loss.

Initial measurement (at cost)

Dr. Financial asset 10,000

Cr. Cash 10,000

At 31.12.20X3 (re-measured to fair value)

Dr. Financial asset 15,250

Cr. Cash 15,250

2. Debentures： on the basis of the information provided, this can be treated as a held-to-maturity investment.

Initial measurement (at cost)

Dr. Financial asset 150,000

Cr. Cash 150,000

At 31.12.20X3 (amortized cost)