01/01/X0 30/06/X0 31/12/X0 30/06/X1 31/12/X1

Coupon rate (2%) (2,000,000) (2,000,000) (2,000,000) (2,000,000)

Nominal value
Out flow (2,000,000) (2,000,000) (2,000,000) (2,000,000)
NPV (3%,outflow) (92,980,308)
Liability component 92,980,308
The proceed 100,000,000
Equity component 7,019,692

01/01/X0
Dr Cash 100,000,000
Cr Liability (convertible bond) 92,980,308
Cr Equity (Capital reserve) 7,019,692

Cash interest Effective interest CA of liability Equity component

1/1/X0 92,980,308 7,019,692
30/06/X0 2,000,000 2,789,409 93,769,717.04 7,019,692
31/12/X0 2,000,000 2,813,092 94,582,809 7,019,692
31/12/X1 2,000,000 2,837,484 95,420,293 7,019,692
31/12/X2 2,000,000 2,862,609 96,282,902 7,019,692
31/12/X3 2,000,000 2,888,487 97,171,389 7,019,692
31/12/X4 2,000,000 2,915,142 98,086,530 7,019,692
31/12/X5 2,000,000 2,942,596 99,029,126 7,019,692
31/12/X6 2,000,000 2,970,874 100,000,000 7,019,692
Total 16,000,000 23,019,692 7,019,692
 30/06/X2 31/12/X2 30/06/X3 31/12/X3
(2,000,000) (2,000,000) (2,000,000) (2,000,000)
(100,000,000)
(2,000,000) (2,000,000) (2,000,000) (102,000,000)

30/06/X0
Interest
Dr Interest expense (P/L) 2,789,409
Cr Liability (Convertible bond) 2,789,409

Payment
Dr Liability ( convertible bond) 2,000,000
Cr Cash 2,000,000
 30/06/X0 31/12/X0 30/06/X1 31/12/X1 30/06/X2
Coupon rate (2,000,000) (2,000,000) (2,000,000) (2,000,000) (2,000,000)
Nominal value
Out flow (2,000,000) (2,000,000) (2,000,000) (2,000,000) (2,000,000)
NPV (3%,outflow)
Liability component
The proceed
Equiti component

Cash interest Effective interest CA of liability Equity component

1/1/X0 $92,980,308 7,019,692
30/06/X0 2,000,000 2,789,409 93,769,717 7,019,692
31/12/X0 2,000,000 2,813,092 94,582,809 7,019,692
30/06/X1 2,000,000 2,837,484 95,420,293 7,019,692
20% convert (19,084,059) (1,403,938) or
remain 76,336,234 5,615,754
31/12/X1 1,600,000 2,290,087 77,026,321 5,615,754
30/06/X2 1,600,000 2,310,790 77,737,111 5,615,754
31/12/X2 1,600,000 2,332,113 78,469,224 5,615,754
30/06/X3 1,600,000 2,354,077 79,223,301 5,615,754
31/12/X3 1,600,000 2,376,699 80,000,000 5,615,754
Total 14,000,000 20,103,751 5,615,754
31/12/X2 30/06/X3 31/12/X3
(2,000,000) (2,000,000) (2,000,000)
(100,000,000)
(2,000,000) (2,000,000) (102,000,000)
($92,980,308)
$92,980,308
100,000,000
7,019,692

01/01/X0
Dr Cash 100,000,000
Cr Liability (convertible bond) $92,980,308
Cr Equity (Capital reserve) 7,019,692

30/06/X0
Interest Payment
Dr Interest expense (P/L) 2,789,409 Dr Liability ( convertible bond) 2,000,000
Cr Liability (Convertible bond) 2,789,409 Cr Cash 2,000,000

Dr Interest expense (P/L) 2,789,409

Cr Cash 2,000,000
Cr Unamortized discount 789,409

Patial convertion
Dr Equity( Capital reserve) 1,403,938
Dr Liability ( Convertible bond) 19,084,059
Cr Equity ( Ordinary share) 20,487,997
 30/06/X0 31/12/X0 30/06/X1 31/12/X1
Coupon rate (2,000,000) (2,000,000) (2,000,000) (2,000,000)
Nominal value
Out flow (2,000,000) (2,000,000) (2,000,000) (2,000,000)
NPV (3%,outflow) ($92,980,308) NPV (2%,outflow) (100,000,000)
Liability component $92,980,308 Liability component 100,000,000
The proceed 100,000,000 Redemption price 108,000,000
Equiti component 7,019,692 Allocated for equity 8,000,000

Cash interest Effective interest CA of liability Equity component

1/1/X0 $92,980,308 7,019,692
30/06/X0 2,000,000 2,789,409 93,769,717 7,019,692
31/12/X0 2,000,000 2,813,092 94,582,809 7,019,692
30/06/X1 2,000,000 2,837,484 95,420,293 7,019,692
31/12/X1 2,000,000 2,862,609 96,282,902 7,019,692
30/06/X2 2,000,000 2,888,487 97,171,389 7,019,692
31/12/X2 2,000,000 2,915,142 98,086,530 7,019,692
30/06/X3 2,000,000 2,942,596 99,029,126 7,019,692
31/12/X3 2,000,000 2,970,874 100,000,000 7,019,692
Total 16,000,000 23,019,692 7,019,692
30/06/X2 31/12/X2 30/06/X3 31/12/X3
(2,000,000) (2,000,000) (2,000,000) (2,000,000)
(100,000,000)
(2,000,000) (2,000,000) (2,000,000) (102,000,000)

31/12/X1 Carying amount

Carrying amount of Liability 96,282,902
Carrying amount of equity component 7,019,692

31/12/X1
Different between redemption amount an carying value
Allocated for liability component : 3,717,098
Allocated for equity component: 980,308

Redemption
Dr Equity ( Capital reserve) 7,019,692
Dr Liability ( convertible bond) 96,282,902
Dr Bond redemption expense 3,717,098
Dr Equity ( Capital reserve) 980,308
Cr Cash 108,000,000
 30/06/X0 31/12/X0 30/06/X1 31/12/X1 30/06/X2
Coupon rate (2,000,000) (2,000,000) (2,000,000) (2,000,000) (2,000,000)
Nominal value
Out flow (2,000,000) (2,000,000) (2,000,000) (2,000,000) (2,000,000)
NPV (3%,outflow)
Liability component
The proceed
Equiti component

New share issued on full convertion 80,000,000

Share issued in current 75,000,000
Different 5,000,000
Cost of inducing the convertion 10,000,000

Cash interest Effective interest CA of liability Equity component

1/1/X0 $92,980,308 7,019,692
30/06/X0 2,000,000 2,789,409 93,769,717 7,019,692
31/12/X0 2,000,000 2,813,092 94,582,809 7,019,692
31/12/X1 2,000,000 2,837,484 95,420,293 7,019,692
31/12/X2 2,000,000 2,862,609 96,282,902 7,019,692
31/12/X3 2,000,000 2,888,487 97,171,389 7,019,692
31/12/X4 2,000,000 2,915,142 98,086,530 7,019,692
31/12/X5 2,000,000 2,942,596 99,029,126 7,019,692
31/12/X6 2,000,000 2,970,874 100,000,000 7,019,692
Total 16,000,000 23,019,692 7,019,692
31/12/X2 30/06/X3 31/12/X3
(2,000,000) (2,000,000) (2,000,000)
(100,000,000)
(2,000,000) (2,000,000) (102,000,000)
($92,980,308)
$92,980,308
100,000,000
7,019,692

01/01/X0
Dr Cash 100,000,000
Cr Liability (convertible bond) $92,980,308
Cr Equity (Capital reserve) 7,019,692

30/06/X0
Interest Payment
Dr Interest expense (P/L) 2,789,409 Dr Liability ( convertible bond) 2,000,000
Cr Liability (Convertible bond) 2,789,409 Cr Cash 2,000,000

Dr Interest Expense (P/L) 2,789,409

Cr Cash 2,000,000
Cr Unamotized discount 789,409

Early convertible bond

Dr Equity (Capital reserve ) 7,019,692
Dr Liability( convertible bond) 96,282,902
Dr Convertible bond expense 10,000,000
Cr Cash 113,302,594
1/1/X4
Dr Cash 6,000
Cr Equity 6,000

31/12/X5
Cash receive 75,000
Warrant exercised 4,500
Equity 79,500
Nominal value 52,500
Share reserve 27,000

Dr Cash 75,000 OR Dr Cash 75,000

Dr Equity- Warrant 4,500 Dr Equity- Warrant 4,500
Cr Equity- Share capital 79,500 Cr Equity-Share capital 52,500
Cr Equity-Share premium 27,000

Dr Equity-Warrant 1,500
Cr Equity (Capital reserve) 1,500
01/01/X4
Issued share capital 12,000,000
Retained earning 3,000,000
Total shareholder's equity 15,000,000

01/01/X4
Dr Treasury share 30,000
Cr Cash 30,000

Issued share capital 12,000,000

Reatained earning 3,000,000
Treasury share (30,000)
Total shareholder capital 14,970,000

01/10/X4
Dr Issued share capital 30,000
Cr Treasury shares 30,000
Date 1/1/X0 30/6/X0 31/12/X0 30/6/X1 31/12/X1 30/6/X2
Coupon rate 150,000 150,000 150,000 150,000 150,000
Face value
Outflows 150,000 150,000 150,000 150,000 150,000
Liability component 9,124,794
Equity component 875,206

Present debt component 9,124,794

Equity component 875,206

Amortisation schedule of bond discount

Date Payment Effective Amortized Unamortized CA of debt
interest bond discount bond discount
1/1/X0 875,206 9,124,794
30/6/X0 150,000 228,120 78,120 953,326 9,202,913
31/12/X0 150,000 230,073 80,073 1,033,399 9,282,986
30/6/X1 150,000 232,075 82,075 1,115,474 9,365,061
31/12/X1 150,000 234,127 84,127 1,199,600 9,449,187
30/6/X2 150,000 236,230 86,230 1,285,830 9,535,417
31/12/X2 150,000 238,385 88,385 1,374,215 9,623,803
30/6/X3 150,000 240,595 90,595 1,464,810 9,714,398
31/12/X3 150,000 242,860 92,860 1,557,670 9,807,258
30/6/X4 150,000 245,181 95,181 1,652,852 9,902,439
31/12/X4 150,000 247,561 97,561 1,750,413 10,000,000
***

2
Date Payment Effective Amortized Unamortized CA of debt
interest bond discount bond discount
1/1/X0 875,206 9,124,794
30/6/X0 150,000 228,120 78,120 953,326 9,202,913
31/12/X0 150,000 230,073 80,073 1,033,399 9,282,986
30/6/X1 150,000 232,075 82,075 1,115,474 9,365,061
31/12/X1 150,000 234,127 84,127 1,199,600 9,449,187
30/6/X2 150,000 236,230 86,230 1,285,830 9,535,417
45,000 70,869 25,869 385,749 2,860,625
Covertible 30%
105,000 165,361 60,361 900,081 6,674,792
31/12/X2 105,000 166,870 61,870 961,951 6,736,662
30/6/X3 105,000 168,417 63,417 1,025,367 6,800,078
31/12/X3 105,000 170,002 65,002 1,090,369 6,865,080
30/6/X4 105,000 171,627 66,627 1,156,996 6,931,707
31/12/X4 105,000 173,293 68,293 1,225,289 7,000,000
3
31/12/X2 30/6/X3 31/12/X3 30/6/X4 31/12/X4
150,000 150,000 150,000 150,000 150,000
10,000,000
150,000 150,000 150,000 150,000 10,150,000

1 Balance sheet at 31/12/20X2 (adjusted)

Non-current asset 20,000,000

Current 8,000,000
28,000,000

Current liability 6,000,000

Non-current liability (Present debt) 9,623,803
Share capital 10,000,000
Retained earnings 1,500,991 ***
Capital reserve (Equity component) 875,206
28,000,000

Retained earnings (1/1/X0) 2,000,000

20x0 158,193
20x1 166,201
20x2 174,615
Retained earnings (31/12/X2) 1,500,991

Equity section of balance sheet

at 31/12/X2
Share capital
Retained earning
Capital reserve
Total capital
Yêu cầu 1
Year 02/01/X0 30/06/X0 31/12/X0 30/06/X1 31/12/X1
Coupon rate (1%) (100,000) (100,000) (100,000) (100,000)
Nominal value
Outflows (100,000) (100,000) (100,000) (100,000)
NPV [2.5%,outflows] (8,687,190)
Liability component 8,687,190
The proceed (Cash) 10,000,000
Equity component 1,312,810

Debt component 8,687,190

Equity component 1,312,810

Yêu cầu 2
Cash Interest Effective Amortized CA of
Date Unamortized
(payment) Interest of bond Liability
of bond
02/01/X0 1,312,810 8,687,190
30/06/X0 100,000 217,180 117,180 1,195,630 8,804,370
31/12/X0 100,000 220,109 120,109 1,075,521 8,924,479
30/06/X1 100,000 223,112 123,112 952,409 9,047,591
31/12/X1 100,000 226,190 126,190 826,219 9,173,781
30/06/X2 100,000 229,345 129,345 696,874 9,303,126
31/12/X2 100,000 232,578 132,578 564,296 9,435,704
30/06/X3 100,000 235,893 135,893 428,404 9,571,596
31/12/X3 100,000 239,290 139,290 289,114 9,710,886
30/06/X4 100,000 242,772 142,772 146,341 9,853,659
31/12/X4 100,000 246,341 146,341 (0) 10,000,000

Interest expense for 20x1 = 449,302

Yêu cầu 3:
Year 01/07/X2 31/12/X2 30/06/X3 31/12/X3 30/06/X4
Coupon rate (1%) (100,000) (100,000) (100,000) (100,000)
Nominal value
Outflows (100,000) (100,000) (100,000) (100,000)
NPV [1.5%,outflows] ($9,760,868)
Liability component $9,760,868

Different between FV with CA of debt component

FV of debt component 9,760,868
CA of debt component 9,303,126
Change 457,742

Total FV of debt and equity component:

CA of debt component 9,303,126
Equity component 1,312,810
Total 10,615,935

--> The company should retired the bond at 1/7/X2

Yêu cầu 4:
01/07/X2 Carrying amount
Carying amount of Liability 9,303,126
Carrying amonut of Equity component 696,874

01/07/X2 Different between redemption price with carrying amount; redemption price = 10,000,000 x 103% = 10,300,000.
Allocated for liability component 696,874
Allocated for equity component 539,132

If the company retire the bond

Dr Bond payment 10,000,000
Dr Bond redemption expense 457,742
Cr Unamortized discount 696,874
Cr Cash 9,760,868

Dr Capital reserve 539,132

Cr Cash 539,132
30/06/X2 31/12/X2 30/06/X3 31/12/X3 30/06/X4 31/12/X4
(100,000) (100,000) (100,000) (100,000) (100,000) (100,000)
(10,000,000)
(100,000) (100,000) (100,000) (100,000) (100,000) (10,100,000)

31/12/X4
(100,000)
(10,000,000)
(10,100,000)
0,000 x 103% = 10,300,000.
Yêu cầu 1,2
Year 31/12/X0 31/12/X1 31/12/X2 31/12/X3 31/12/X4
Coupon Interest 85,000 85,000 85,000 85,000
Nominal value
Outflows 85,000 85,000 85,000 85,000
NPV [8%,outflows] 1,019,964
Debt component = 1,019,964

Date Payment Eff. Interest Amortized of CA of debt

bond component
31/12/X0 1,019,964
31/12/X1 85,000 81,597 (3,403) 1,016,561
31/12/X2 85,000 81,325 (3,675) 1,012,885
31/12/X3 85,000 81,031 (3,969) 1,008,916
31/12/X4 85,000 80,713 (4,287) 1,004,630
31/12/X5 1,085,000 80,370 (1,004,630) -

31/12/X0
Dr Investment 1,019,964
Cr Cash 1,019,964

Year 31/12/X1 31/12/X2 31/12/X3 31/12/X4 31/12/X5

Coupon Interest 85,000 85,000 85,000 85,000
Nominal value 1,000,000
Outflows 85,000 85,000 85,000 1,085,000
NPV [6%,outflows] 1,086,628
Debt component = 1,086,628

FV of debt component 1,086,628

CA of debt component 1,016,561
Change 70,067

31/12/X1
Dr Cash 85,000
Cr Interest receive 81,597
Cr Bond 3,403

Dr Bond 70,067
Cr Gain on revaluation (OCI) 70,067

Year 31/12/X2 31/12/X3 31/12/X4 31/12/X5

Coupon Interest 85,000 85,000 85,000
Nominal value 1,000,000
Outflows 85,000 85,000 1,085,000
NPV [5%,outflows] 1,095,314
31/12/X2
FV of debt component 1,095,314
CA of debt component 1,012,885
Change 82,428

Dr Cash 85,000
Cr Interest receive 81,325
Cr Bond 3,675

Sale 40% of bonds

Dr Cash 438,125
Cr Bond 438,125
31/12/X5
85,000
1,000,000
1,085,000
Yeu cau 1
Date 01/07/X6 31/12/X6 30/06/X7 31/12/X7 30/06/X8 31/12/X8
Payment (12,500,000) 180,000 180,000 180,000 180,000 180,000
IRR (EIR) 1.0587%

Effective interest rate per half-year 1.0587%

Effective interest rate per annum 2.1174%

Yeu cau 2
Effective Amortized Unamortized Priciple CA of debt
Date Payment Interest of Bond of Bond component
01/07/X6 500,000 12,000,000 12,500,000
31/12/X6 180,000 132,336 (47,664) 452,336 12,000,000 12,452,336
30/06/X7 180,000 131,831 (48,169) 404,168 12,000,000 12,404,168
31/12/X7 180,000 131,321 (48,679) 355,489 12,000,000 12,355,489
30/06/X8 180,000 130,806 (49,194) 306,295 12,000,000 12,306,295
31/12/X8 180,000 130,285 (49,715) 256,581 12,000,000 12,256,581
30/06/X9 180,000 129,759 (50,241) 206,340 12,000,000 12,206,340
31/12/X9 180,000 129,227 (50,773) 155,567 12,000,000 12,155,567
30/06/X10 180,000 128,690 (51,310) 104,256 12,000,000 12,104,256
31/12/X10 180,000 128,146 (51,854) 52,403 12,000,000 12,052,403
30/06/X11 12,180,000 127,597 (12,052,403) (12,000,000) 12,000,000 -

Yeu cau 3
FV of the MRPS as at 31/12/X6 and 30/06/X7
FV of the MRPS as at 31/12/X6 : 11,510,266
FV of the MRPS as at 30/06/X7: 11,139,584

Yeu cau 4 31/12/X6 31/12/X6

a. Amortized Cost b. FVPL
Dr Cash 180,000 Dr Cash
Cr Interest income 132,336 Cr Interest income
Cr MRPS (Bond) 47,664 Cr MRPS (Bond)

FV of MRPS as at 31/12/x6
CA of MRPS as at 31/12/x6
Change

Dr Loss (P/L)
Cr MRPS (Bond)

30/07/X7 30/07/X7
Dr Cash 180,000 Dr Cash
Cr Interest income 131,831 Cr Interest income
Cr MRPS (Bond) 48,169 Cr MRPS (Bond)

FV of MRPS as at 30/06/x7
CA of MRPS as at 30/06/x7
Change

Dr Loss (P/L)
Cr MRPS (Bond)
30/06/X9 31/12/X9 30/06/X10 31/12/X10 30/06/X11
180,000 180,000 180,000 180,000 12,180,000

31/12/X6
c. FVOCI
180,000 Dr Cash 180,000
132,336 Cr Interest income 132,336
47,664 Cr MRPS (Bond) 47,664

11,510,266 FV of MRPS as at 31/12/x6 11,510,266

12,452,336 CA of MRPS as at 31/12/x7 12,452,336
(942,070) Change (942,070)

942,070 Dr Loss (OCI) 942,070

942,070 Cr MRPS (Bond) 942,070

30/07/X7
180,000 Dr Cash 180,000
131,831 Cr Interest income 131,831
48,169 Cr MRPS (Bond) 48,169

11,139,584 FV of MRPS as at 30/06/x7 11,139,584

11,510,266 CA of MRPS as at 30/06/x7 11,510,266
(370,682) Change (370,682)

370,682 Dr Loss (P/L) 370,682

370,682 Cr MRPS (Bond) 370,682
Yeu cau 1, 2
Effective Amortized Unamortized CA of debt
Date Payment Interest of Bond of Bond component
01/07/X6 553,331 11,446,669
31/12/X6 120,000 171,700 51,700 501,631 11,498,369
30/06/X7 120,000 172,476 52,476 449,156 11,550,844
31/12/X7 120,000 173,263 53,263 395,893 11,604,107
30/06/X8 120,000 174,062 54,062 341,831 11,658,169
31/12/X8 120,000 174,873 54,873 286,959 11,713,041
30/06/X9 120,000 175,696 55,696 231,263 11,768,737
31/12/X9 120,000 176,531 56,531 174,732 11,825,268
30/06/X10 120,000 177,379 57,379 117,353 11,882,647
31/12/X10 120,000 178,240 58,240 59,113 11,940,887
30/06/X11 12,120,000 179,113 (11,940,887) 12,000,000 -

Debt component 11,446,669

Equity component 553,331

Yeu cau 3
31/12/X6
Dr Cash 12,500,000
Dr Unamortized of Bond 553,331
Cr Bond 12,000,000
Cr Equity option 1,053,331

Dr Interest income 171,700

Cr Cash 120,000
Cr Bond 51,700

Yeu cau 4
Effective Amortized Unamortized CA of debt
Date Payment Interest of Bond of Bond component
31/12/X8 143,479 5,856,521
30/06/X9 60,000 87,848 27,848 115,632 5,884,368
31/12/X9 60,000 88,266 28,266 87,366 5,912,634
30/06/X10 60,000 88,690 28,690 58,677 5,941,323
31/12/X10 60,000 89,120 29,120 29,557 5,970,443
30/06/X11 6,060,000 89,557 (5,970,443) 6,000,000 -

31/12/X8
Dr Equity option 526,666
Dr Debt 6,000,000
Cr Unamortized of Bond 143,479
Cr Issued share capital 6,383,186
Year 01/01/X1 30/06/X1 31/12/X1 30/06/X2 31/12/X2 30/06/X3 31/12/X3
Coupon Interest (200,000) (200,000) (200,000) (200,000) (200,000) (200,000)
Nominal value
Outflows (200,000) (200,000) (200,000) (200,000) (200,000) (200,000)
NPV[4%,outflows] (8,377,821) NPV[6%,outflows] (9,458,281)
Liability component 8,377,821 Liability component 9,458,281
The proceeds 10,000,000 Redemption price 12,500,000
Equity component 1,622,179 Equity component 3,041,719

Cash
Effective CA of Equity
Year Interest
Interest Liability component
(payment)
01/01/X1 8,377,821 01/07/X3
30/06/X1 200,000 335,113 8,512,934 1,622,179 Carrying amount
31/12/X1 200,000 340,517 8,653,451 1,622,179 Carrying amount of Liability
30/06/X2 200,000 346,138 8,799,589 1,622,179 Carrying amount of Equity compone
31/12/X2 200,000 351,984 8,951,573 1,622,179
30/06/X3 200,000 358,063 9,109,636 1,622,179 Different between redemption price
31/12/X3 200,000 364,385 9,274,021 1,622,179 Allocated for liability component
30/06/X4 200,000 370,961 9,444,982 1,622,179 Allocated for equity component
31/12/X4 200,000 377,799 9,622,781 1,622,179
30/06/X5 200,000 384,911 9,807,692 1,622,179
31/12/X5 200,000 392,308 10,000,000 1,622,179
Total 2,000,000 3,622,179 1,622,179
 30/06/X4 31/12/X4 30/06/X5 31/12/X5
(200,000) (200,000) (200,000) (200,000)
(10,000,000)
(200,000) (200,000) (200,000) (10,200,000)

Yêu cầu 2:
a. 01/01/X1
mount of Liability 9,109,636 Dr Cash 10,000,000
mount of Equity component 1,622,179 Cr Liability (Convertible bond) 8,377,821
Cr Equity ( Capital reserve) 1,622,179
etween redemption price with carrying amount
or liability component 506,708 b. 31/12/X1
or equity component 1,419,540 Payment
Dr Liability (Convertible bond) 200,000
Cr Cash 200,000

or Dr Interest expense (P/L) 340,517

Cr Cash 200,000
Cr Unamortized discount 140,517

c. Dr Equity (Capital reserve) 1,622,179

Dr Liability (Covertible bond) 8,951,573
Dr Bond redemption expense 506,708
Dr Equity (Capital reserve) 1,419,540
Cr Cash 12,500,000
Interest
Dr Interest expense (P/L) 340,517
Cr Liability (Convertible bond) 340,517
Bond A

1/7/X1
Dr Cash -
Cr Interest income -

Dr Interest income
Cr Bond