Jones International prepares its financial statements under IFRS. If the company issued convertible...
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Jones International prepares its financial statements under IFRS. If the company issued convertible debt for $600,000 and the fair value of the bonds is $530,000, how should the transaction be recorded? a. A bond liability of $600,000 b. A bond liability of $570,000 and an equity account for $30,000 c. A bond liability of $600,000 and a contra liability account for $30,000. d. A bond liability for $570,000 and comprehensive income of $30,000 IFRS defines a "provision" (contingency) that is as probable as a. Above 75% b. Between 60-85% c. More like than not d. Substance over form Under IFRS, if a "provision" (contingency) that is probable is accrued using a range of possible losses how is the amount of the accrual determined? a. Low end of the range b. Upper end of the range c. 75% of the upper end of the range d. Mid-point of the range
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