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Discuss how Putra media Bhd should account for the bond

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Reference no: EM132847000

Question - On 1 January 2018, Putra media Bhd issued a RM200 million at par value bond with a coupon rates of 10% and matures in five years. The prevailing market interest rate of similar risk class bonds is 14%. The accounting year end for Putra media Bhd. is on 31 December.

Discuss how Putra media Bhd. should account for the bond from the date of issuance to maturity date.

Reference no: EM132847000

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