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stressedout
Newbie
Joined: 17 May 2009
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Posts: 49
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| Posted: 25 Aug 2009 at 20:27 | IP Logged
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Anyone have any tips on how to do well on this section? I'm having such a hard time understanding detachable warrants, etc. Pretty much EVERYTHING related to Bonds!
I get so frustrated when I keep missing these homework problems.
Please share your tips!!!!
__________________
BEC - 5/30
AUD - Passed
FAR - Passed
REG -
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Jams
Major Contributor
Joined: 26 Apr 2007
Location: United States
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Posts: 547
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| Posted: 25 Aug 2009 at 22:12 | IP Logged
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keep practicing it again and again, go through J/E properly. i was in the same boat as you initially, bonds give hard time to everyone.
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jams
BEC-76
AUD-80
REG-84
FAR-81 !!!
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bryris
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| Posted: 25 Aug 2009 at 23:31 | IP Logged
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I thought bonds were easy. Pensions killed me.
Post a particular question and I'd be glad to help. No guarantees I'll know the answer, but I'll do my best.
Detachable warrants are just treated as a separate component from the bonds. Sort of like buying a building and land for $100,000 and having to allocate the price paid between the building and the land based on the fair values. The credit to the warrant piece will be to APIC - warrants.
__________________
REG - 97
FAR - 97
BEC - 90
AUD - 97
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Payal123
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Joined: 08 Jan 2009
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Posts: 330
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| Posted: 28 Aug 2009 at 19:50 | IP Logged
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When Bonds are converted, how is "Bond issue cost" handled?
Are they considered in determining the Gain or Loss on conversion when using Market Value Method?
please if some1 could help me on this.
__________________
BEC - 87
REG - 91
FAR - 93
AUD - 87
Texas
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sashkacpa
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Joined: 12 Sep 2008
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| Posted: 28 Aug 2009 at 20:38 | IP Logged
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Conversion is treated as a culmination of an earnings process, (loss) or gain should be recognized.
Bonds and related accounts must be written off.
APIC is a plug.
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Topic: Questions - Bonds
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