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FAC3703 assignment 1 semester 1 2024 (Full solutions with calculations) CA$3.89   Add to cart

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FAC3703 assignment 1 semester 1 2024 (Full solutions with calculations)

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  • April 7, 2024
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  • 2023/2024
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FAC3703
ASSIGNMENT 1 SEMESTER 1 2024
Unique Number:

DUE DATE: 09 April 2024


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, 0688120934

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FINANCIAL INSTRUMENTS & LEASES


(a) Classification. Initial Recognition and Initial Measurement of Debentures


Classification
There is a liability component resulting from Best Electronics Ltd obligation to make
scheduled payments of interest and principal
as long as the debentures are not converted
The equity instrument is an embedded option of the holder to convert the liability into
equity of Best Electronics Ltd which can be
exercised at the end of the five year period


Considering that the financial instrument consists of both a liability and equity
component, this will be classisfied as a compound
financial instrument




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without any representations or warranties, express or implied. The author assumes no liability as
a result of reliance and use of the contents of this document. This document is to be used for
comparison, research and reference purposes ONLY. No part of this document may be
reproduced, resold or transmitted in any form or by any means.

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