¡Descarga 4.2.1 solution y más Apuntes en PDF de Administración de Empresas solo en Docsity!
EXERCISE 4.2.1. VORIANA, S.A. Held‐to‐maturity investments (Objective: Get a financial profitability (economic
performance: fixed interest)
On 01 ‐ 01 ‐ 2010 we bought 10 debt securities from the listed firm VORIANAN, plc. The nominal value of each
debt security was: 1.000€. We paid 8.500€ plus 50€ for transaction costs.
This financial asset was classified in the group of held‐to‐maturity investments with the objective of get
financial profitability. The nominal interest was 3% that VORIANA, plc. paid annually at the end of each year.
The maturity was on 31 ‐ 12 ‐ 2014 and VORIANA, plc. paid 1.100€ for each debt security.
Cashflows
Nominal interest rate: 3% annual.
Effective interest rate: Internal Rate of Return (IRR): 8,354% annual)
Financial table
Date Accrued
interest
Received
interest
Difference
(deferred
interests)
Amortised
capital
Total 3.950 1.500 2.
Accrued interest in 31/12/2010: 8.550 x effective interest rate 8,354% =714€
Received interest in 31/12/2010: nominal value 10.000€ x nominal interest 3% = 300€
To do: the total accounting entries of this operation
SOLUTION
EXERCISE 4.2.1. VORIANA, S.A. Held‐to‐maturity investments (Objective: Get a financial profitability (economic
performance: fixed interest)
- Held‐to‐maturity investments (Get a financial profitability (interest)) Includes debt securities with fixed maturity and fixed or determinable payments traded in an active market, which the company has the intention and ability to hold to maturity.
Initial measurement Fair value. In the absence of evidence to the contrary, this shall be the transaction price, which is equivalent to the fair value of the consideration given plus directly attributable transaction costs
Subsequent measurement Amortised cost. Accrued interest shall be recognised in the income statement using the effective interest rate method.
Impairment Same as loans and receivables The market value of the instrument may be used instead of the present value of estimated future cash flows, provided that this is sufficiently reliable to be considered representative of the value recoverable by the company.
Debit Credit 01 ‐ 01 ‐ 2010 Buying debt securities
8.550 (251) Non‐current debt securities
to (57) Cash 8.
31 ‐ 12 ‐ 2010 Accrued and received interests
(57) Cash (251) Non‐current debt securities
to 761. Income from debt securities
31 ‐ 12 ‐ 2011 Accrued and received interests
(57) Cash (251) Non‐current debt securities
to 761. Income from debt securities
31 ‐ 12 ‐ 2012 Accrued and received interests
(57) Cash (251) Non‐current debt securities
to 761. Income from debt securities
31 ‐ 12 ‐ 2013 Accrued and received interests
(57) Cash (251) Non‐current debt securities
to 761. Income from debt securities
Reclassification 10.426 (541) Current debt securities
to (251) Non‐current debt securities
31 ‐ 12 ‐ 2014 Accrued and received interests
(57) Cash (541) Current debt securities
to 761. Income from debt securities
Cash flow Entrance at the debt securities’ maturity
11.000 (57) Cash to (541) Current debt securities
