Solution-Calculate the amount to appear in the income

Calculate the amount to appear in the income statement

Reference no: EM133180262

Question - Harrow plc has 5,000,000 £1 4% bonds maturing in 10 years' time which were issued by the company on 1 January 20X1.

These bonds were issued at par with issue costs of £100,000.

The effective interest rate is 4.5% per annum.

Interest on the bonds is payable annually in arrears.

The bonds (financial instruments) were not designated as financial liabilities at fair value through profit or loss.

Required - Calculate the amount to appear in the income statement of Harrow plc for the year to 31 December 20X4 in relation to the above bonds, under IFRS 9 Financial Instruments.

Reference no: EM133180262

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Calculate the amount to appear in the income statement

Reference no: EM133180262

Reference no: EM133180262

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