Question
Thornfield issues bonds at a discount, books a year of effective interest, then buys them back early. Measure the carrying amount and the loss on redemption.
Statements in this challenge
- Issue PriceNumeric Answer
- Journal EntriesJournal Entry
- Carrying AmountNumeric Answer
- Loss on RedemptionNumeric Answer
- Statement ImpactStatement Impact
Scoring
- 40% Account naming / line matching
- 40% Amount correctness
- 20% Structure / section placement
How to approach this
IAS 1 — Presentation of Financial Statements
A composite challenge links several statements built from one set of data, so figures flow between them: profit reaches retained earnings, and the closing balances feed the position statement. Complete them in the order the statements depend on each other rather than the order of the tabs.
Common mistakes
- Preparing each statement independently, so the linking figures disagree.
- Carrying a figure forward before finishing the adjustments that change it.
- Reworking a linked figure in one statement without updating it in the others.
Further readingIAS 1: what goes where in a full set of statements