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Chapter 10 Investments in Debt Securities
Chapter 10 Investments in Debt Securities
Chapter 10 Investments in Debt Securities
LECTURE AID
2020
• When bonds are sold prior to maturity, the difference between the
net disposal proceeds and the carrying amount of the bonds,
adjusted for any discount or premium amortization up to date of
disposal, is recognized as gain or loss in profit or loss.
• Serial bonds are bonds with series of maturity dates. Serial bonds
are accounted for similar to term bonds. However, the periodic
collections on serial bonds include not only collections for
interests but also collections for principal.