ISSUE OF A BOND

I. fv=1,000,0000 n=20 i=3 pmt=40,000

pv=1,148,775 1,000,000*.55368=
40,000*14.87747=

Cash
Bond payable

Interest expense
Bond payable
Cash
(1,148,775*.03)
iii.
1,148,775-1,000,000=148,775/20=7,439

Interest expense
Bond payable
Cash
iv Retirement 12/24 n=8

IFRS

Carrying value

Bond payable
Gain on retirement
Cash

ASPE

Premium Amortization (S/L)

Unamortized Premium
(7,439*8)
Carrying value of bond

Bond payable
Gain on retirement
Cash
 pmt=40,000

000*.55368= 553,680
0*14.87747= 595,099

1,148,779
1,148,775
1,148,775

30-Jun 31-Dec

34,463 34,297
5,537 5,703
40,000
(1,148,775-5,537)*
75/20=7,439

32,561
7,439
40,000
1,070,196

1,070,196
45,196
1,025,000

7,439

59,512
1,059,512

1,059,512
34,512
1,025,000
 40,000
48,775-5,537)*.03
ISSUE OF A BOND

I. fv=1,000,0000 n=20 i=5 pmt=40,00

pv=875,378 1,000,000*.37689
40,000*12.46221

Cash
Bond payable

Interest expense
Bond payable
Cash
(875,378*.05)
iii.
1,000,000-875,378=124,622/20=6,231

Interest expense
Bond payable
Cash
iv Retirement 12n=8

IFRS

Carrying value

Bond payable
Loss on retirement
Cash

ASPE

Discount Amortization (S/L

Unamortized Discount
(6,231*8)
Carrying value of bond

Bond payable
Loss on retirement
Cash
 i=5 pmt=40,000

00*.37689 498,488
*12.46221 376,890

875,378
875,378
875,378

30-Jun 31-Dec

43,769 43,957
3,769
40,000
(875,378+3,769)*.05
24,622/20=6,231

46,231
6,231
40,000
935,367

935,367
89,633
1,025,000

6,231

49,848
950,152

950,152
74,848
1,025,000
 3,957
40,000
5,378+3,769)*.05