CHAPTER 2

Non-Current Liabilities
__________________________________
Learning Objectives
After reading this chapter, you should be able to
1. Understand the nature of non-current liability.
2. Compare debt financing with equity financing
3. dentify the different classes of bonds
!. "repare entries for bond issuance, payment of bond interest and
amorti#ation of bond premium or discount.
$. Compute carrying amount of bonds to be presented on the
statement of financial position.
%. &ecord the derecognition of bond liabilities.
'. "repare entries to account for long-term notes.
(. Account for different forms of troubled-debt restructuring.
). dentify required disclosures for non-current liabilities.
All liabilities not classified as current liabilities are classified as non-current liabilities.
Non-current liabilities include
1. Portion of long-term obligations expected to be settled beyond 12 months from the
end of the reporting period
2. Obligations where the enterprise has an unconditional right to defer settlement for
more than 12 months after the reporting date.
3. Not mainly held for trading purposes
he most common types of non-current liabilities include!
long-term ban" borrowings
notes and mortgages
And similar obligations which are related to the general financial condition of the enterprise
rather than to the operating cycle and are due beyond 12 months from the end of the reporting
period. #iabilities arising from finance lease that are not due within 12 months from the end of
the reporting period and deferred income tax liabilities are also classified as non-current
liabilities.
DEBT FINANCING AND EQUIT FINANCING
$hen a corporation desired to raise additional funds for long-term purposes% it may
borrow by issuing bonds and notes &debt financing' or it may obtain funds by issuing additional
share capital to shareholders &e(uity financing'. )ach source of funds has its particular
ad*antages and disad*antages to the issuing corporation.
+n many cases% management and shareholders fa*or debt financing o*er e(uity financing
for the following reasons!
+. ,ince there will be no issuance of new ordinary shares% the present owners remain in
control of the corporation. -y issuing bonds% therefore% a corporation does not spread or
dilute control of management o*er a larger number of owners.
++. he interest incurred in debt financing is a deductible expense in arri*ing at taxable
income while di*idends o share capital are not.
+++. he charge for interest on the debt may be less than the amount of di*idends that might
be expected by shareholders.
.ebt financing% howe*er% has also its disad*antages. Apparently% an enterprise can a*ail of
debt financing only if it has ade(uate security offered to creditors. /oreo*er% interests on debt
are re(uired to be paid periodically regardless of the enterprise0s financial performance and
financial position. +f the interest is not paid on the dates specified by the contract% the creditors
may bring legal action and there is the possibility of ta"eo*er by the creditors.
B!ND" PAABLE
A bond is a formal unconditional promise% made under seal% to pay a specified sum of
money at a determinable future date% and to ma"e periodic interest payment at a stated rate until
the principal sum is paid.
+n simple language% a bond is a contract of debt whereby one party is called the issuer
borrows funds from another party called the in*estor.
A bond is e*idenced by a certificate and the contractual agreement between the issuer and
in*estor is contained in another document "nown as 1bond indenture2.
TPE" !F B!ND"
erm bonds 3 bonds with a single date of maturity.
,erial bonds 3bonds that mature by installments.
/ortgage bonds 3 bonds secured by mortgage of real properties.
4ollateral trust bonds 3 bonds secured by in*estments in stoc"s and bonds.
.ebenture bonds 3 bonds without collateral security.
5egistered bonds 3 re(uires the registration of the name of the bondholder on the
boo"s of the corporation.
4oupon or bearer bonds 3 the name of the bondholder is not registered.
4on*ertible bonds 3 bonds that can be exchanged for e(uity shares of the issuing
company.
4allable bonds 3 bonds that can be called in for payment before the date of maturity.
6uaranteed bonds 3 bonds issued whereby another party promises to ma"e payment if
the borrower fails to do so.
7un" bonds 3 these are high ris" and high yield bonds issued by entities that are
hea*ily indebted or otherwise in wea" financial position.
4ommodity-bac"ed bonds 3 bonds which are redeemable in terms of commodities
such as oil or precious metals.
INITIAL #EA"URE#ENT !F B!ND" PAABLE
+n accordance with P85, 9% bonds payable not designated at fair *alue through
profit or loss shall be measured initially at $air %alue minus transaction costs that are
directly attributable to the issue of the bonds payable.
he fair *alue of the bonds payable is e(ual to the &resent %alue of the future cash
payments to be settled the bond liability.
-ond issue costs shall be deducted from the fair *alue or issue price of the bonds payable
in measuring initially the bond payable.
:owe*er% if the bonds are designated and accounted for 1at fair *alue through profit or
loss2% the bond issue costs are treated as expense immediately.
Actually% the fair *alue of the bonds payable is the same as the issue price or net proceeds
from the issue of the bonds% excluding accrued interest.
"UB"EQUENT #EA"URE#ENT !F B!ND" PAABLE
+n accordance with P85, 9% after initial recognition, bonds payable shall be measured
either!
a. At amorti;ed cost% using the effecti*e interest method.
b. At fair *alue through profit or loss.
A#!RTI'ED C!"T !F B!ND" PAABLE
he 1amorti;ed cost2 of bonds payable is the amount at which the bond liability is
measured initially minus principal repayment% plus or minus the cumulati*e amorti;ation
using the effecti*e interest method of any difference between the initial amount and the
maturity amount.
,imply stated% the difference between the face amount and present *alue of the bonds
payable is amorti;ed using the effecti*e interest method.
Actually% the difference between the face amount and present *alue is either discount or
premium on the issuance of the bonds payable.
Accordingly% discount on bonds payable and bond issue cost are presented as (e(u)tion
from the bonds payable and premium bonds payable is an a((ition to bonds payable.
ACC!UNTING F!R I""UANCE !F B!ND"
here are two approaches in accounting for the authori;ation and issuance of bonds%
namely!
+emorandum approach , +n this
approach% NO )N5< is made upon
the authori;ation of the entity to
issue bonds.
-ournal entry approach , +n this
approach% as the title suggests% a
=ournal entry is made to record the
authori;ed bonds payable.
PRE#IU# !N B!ND" PAABLE
+f the sales price of the bonds is more than face *alue of the bonds% the bonds are said to
be sold at a premium.
he 1premium on bonds payable2 is in effect gain on the part of the issuing entity%
because it recei*es more than what it is obligated to pay under the bond issue.
he obligation of the issuing entity is limited only to the face value of the bonds.
he premium on bonds payable% howe*er% is not treated as an outright gain but amorti;ed
o*er the life of the bond by
Premium on bonds payable >>
+nterest expense >>
DI"C!UNT !N B!ND" PAABLE
+f the sales price of the bonds is less than face *alue of the bonds% the bonds are said to
be sold at a discount.
he 1discount in bonds payable2 is in effect a loss to the issuing entity% because it
recei*es less than what it is obligated to pay which is e(ual to the face *alue.
:owe*er% the discount on bonds payable is not treated as outright loss but amorti;ed o*er
the life of the bonds by
+nterest expense >>
.iscount on bonds payable >>
ACCRUED INTERE"T !N B!ND" I""UED
-onds are often issued at any time between the interest payment dates. ,ince the
issuing corporation will pay the full periodic interest on all bonds outstanding at an
interest date% the bondholder is usually re(uired to purchase the interest that has accrued
from the most pre*ious interest date to the date of sale. his accrued interest is added to
the issue price of the bond to determine the total cash proceeds from the bond issuance.
TRAN"ACTI!N C!"T" !N I""UE !F B!ND"
-ond issue costs or 1transaction costs2 are incremental costs that are directly attributable
to the issue of bonds payable.
-ond issue costs are not treated as outright expense but amorti;ed o*er the life of the
bond issue in a manner similar to that used for discount on bonds payable.
-ond issue costs are concei*ed as cost of borrowing and therefore will increase interest
expense. he amorti;ation of bond issue costs is recorded by
+nterest expense >>
-ond issue cost >>
PRE#IU# AND DI"C!UNT A#!RTI'ATI!N
$hen bonds are issued at a premium or discount% the periodic interest payments
made by the issuer to the in*estors o*er the bond life (o not represent the complete
interest expense for the periods in*ol*ed.
+n order to reflect the total interest cost of the bonds% bond premium or discount should be
allocated o*er the life of the bonds using the e$$e)ti%e interest *et+o(. his allocation%
called a*orti,ation% is a deduction from or addition to the interest expense. Amorti;ation
results in a gradual ad=ustment of the nominal interest to the effecti*e interest.
EFFECTI-E INTERE"T #ETH!D
?sing the effecti*e interest method% a constant interest rate based the carrying
&boo"' *alue of the bonds is recogni;ed as interest expense each period% resulting in
une(ual recorded amounts of interest expense. he interest method pro*ides an
increasing premium or discount amorti;ation each period.
o obtain a period0s interest expense under this method% the bond0s carrying *alue at the
beginning of each period is multiplied by the effecti*e interest rate. he difference
between this amount and the amount of interest paid or accrued &nominal interest rate x
face *alue of the bonds' is the amount of discount or premium amorti;ation.
-onds ,old at Pre*iu* Dis)ount
+nterest expense .)45)A,), +N45)A,),
4arrying *alue .)45)A,), +N45)A,),
Amorti;ation +N45)A,), +N45)A,),
he effecti*e interest method or simply 1interest method2 or scientific method recogni;es
two "inds of interest rate 3 nominal rate and effecti*e rate.
he nominal rate is the rate appearing on the face of the bonds while the effecti*e rate is
the actual interest incurred on the bond issue.
he e$$e)ti%e rate is the rate that exactly discounts estimated cash future payments
through the expected life of the bonds payable or when appropriate% a shorter period to
the net carrying amount of the bonds payable.
he no*inal rate is also "nown as )ou&on or state( rate.
he e$$e)ti%e rate is also "nown as /iel( or *ar0et rate.
+f the bonds are sold at $a)e %alue% the nominal rate and effecti*e rate are t+e sa*e.
+f the bonds are sold at a (is)ount% the effecti*e rate is +i1+er t+an nominal rate.
+f the bonds are sold at a &re*iu*% the effecti*e rate is lo2er t+an nominal rate.
FAIR -ALUE !PTI!N !F B!ND" PAABLE
+n accordance with P85, 9% at initial recognition, bonds payable may be irre%o)abl/
(esi1nate( as at fair *alue through profit or loss.
+n other words% under the fair *alue option% the bonds payable shall be measured initially
at fair *alue and remeasured at e*ery year-end at fair *alue and any changes in fair *alue
are recogni;ed in profit or loss.
here is no more amorti#ation of bond issue cost% bond discount or bond premium.
As a matter of fact% interest expense is recogni;ed using the nominal or stated interest rate
and not the effecti*e interest rate.
RETIRE#ENT !F B!ND"
he issuing corporation may retire bonds at maturity date or before the maturity date
either by redeeming the bonds or repurchasing them in the open mar"et. +f bonds retire at
their maturity date% any premium or discount will ha*e been completely amorti;ed. he
retirement is recorded as an ordinary payment of debt% and no gain or loss is recogni;ed
upon the retirement on maturity date. :ence% the entry for the settlement of the bonds on
maturity date is!
-onds payable >>
4ash >>
he amount of cash paid to the bondholders e(uals the face *alue of the bonds.
+f the bonds retired prior to their maturity and retirement price is less than the carrying
amount of the bonds% the corporation reali;es a gain on the retirement. he carrying *alue
is e(ual to the face *alue of the bonds plus any unamorti;ed premium or less any
unamorti;ed discount on the date of retirement. ,imilarly% if the retirement price is
greater than the carrying *alue% a loss is incurred on the retirement of the debt. 6ain or
loss on the retirement of bonds is reported in profit or loss as an operating gain or loss.
+f bonds are retired before maturity date% the following must be obser*ed!
+. he amorti;ation of premium or discount must be updated to determine the
carrying amount of the bonds at the date of retirement.
++. Any accrued interest on the retired bonds from the most recent interest payment
date up to date of retirement must be recorded and paid.
TREA"UR B!ND"
.reasury bonds are an entity0s own bonds originally issued and reac(uired but not
canceled.
$hen treasury bonds are ac(uired% the 1treasury bonds account2 is debited at face *alue
and any related unamorti;ed premium or discount or issue cost is canceled.
he difference between the ac(uisition cost and the carrying amount of the treasury
bonds is treated as gain or loss on ac(uisition of treasury bonds.
Any accrued interest paid is charged to interest expense.
.reasury bonds are reported in the statement of financial position as a deduction from
bonds payable.
B!ND REFUNDING
Bon( re$un(in1 is the floating of new bonds payable the proceeds from which are used
in paying the original bonds payable.
,imply stated% bond refunding is the premature retirement of the old bonds payable
through the issuance of new bonds payable.
he refunding charges include the unamorti#ed bond discount or premium, unamorti#ed
bond issue cost and redemption premium on the bonds being refunded.
P85, 9% pro*ides that bond refunding is an e3tin1uis+*ent of a financial liability.
8urther pro*ides that the difference between the carrying amount of the financial liability
extinguished and the consideration paid shall be included in profit or loss.
Accordingly% the refunding charges shall be accounted for as loss on earl/ e3tin1uis+ o$
(ebt.
B!ND" 4ITH EQUIT CHARACTERI"TIC"
4orporations may issue bonds that allow creditors to ultimately become shareholders by
either attaching share warrants to the bonds or including a con*ersion feature in the bond
indenture. +n either case% the in*estor has ac(uired a dual set of rights% namely! the right
to recei*e interest and principal payment on the bonds and the right to ac(uire ordinary
shares and participate in the potential appreciation of the mar"et *alue of the shares.
?sually% bonds of this nature are attracti*e to in*estors and will generally result in either a
relati*ely lower interest rate or greater proceed when compared with other bond issue
with similar ris" but without such rights.
C!N-ERTIBLE B!ND"
Another example of a compound financial instrument is con*ertible bond. 4on*ertible
bonds gi*e the holders thereof the right to exchange their bondholding into ordinary
shares or other securities of the issuing company within a specified period of time.
he principle of splitting the issue price of a compound financial instrument to its debt
component and e(uity component is applied. he issue price of the con*ertible
component is comprised of two components! a financial liability and an e(uity
instrument. he total issue price to bifurcated using the residual approach.
TR!UBLED 5 DEBT RE"TRUCTURING
.uring periods of depressed economic conditions% some debtors experience difficulty in
meeting their maturing obligations. 8or this reason% the creditor may grant concession to
the debtor that it would not otherwise grant under normal conditions. his is referred to
as troubled debt restructuring.
?nder +A, 39% an entity shall remo*e a financial liability from its statement of financial
position when% and only when% it is extinguished.
A troubled debt restructuring in*ol*es one of three forms!
Asset swap
)(uity swap
/odification of debt terms
DI"CL!"URE REQUIRE#ENT"
An entity shall disclose the following in its financial statements!
1. 8or each class of pro*ision% an entity should disclose!
a. +nformation about the extent and nature of the financial instruments% including
significant terms and conditions that may affect the amount% timing and certainty
of future cash flows@
b. he accounting policies and methods adopted% including the criteria for
recognition and the basis of measurement applied.
2. $hen the financial instruments issued by an entity% either indi*idually or as a class%
create a potentially significant exposure to either mar"et ris"% credit ris"% li(uidity ris"
or cash flow interest rate ris"% terms and conditions that warrant disclosure include
a. Principal% stated face or either similar amount@
b. .ate of maturity% expiry% or execution@
c. )arly settlement options@
d. 4ollateral pledged@
3. 8or each class of financial liabilities% an entity shall disclose information about its
exposure to interest rate ris".
A. 8or each class of financial liabilities% an entity shall disclose the fair *alue of that
class of financial liabilities in a way that permits it to be compared with the
corresponding carrying amount in the balance sheet.
B. An entity shall disclose the carrying amount of financial assets pledged as collateral
for liabilities% the carrying amount of financial assets pledged as collateral for
contingent liabilities% and any material terms and conditions relating to assets pledged
as collateral.
C. +f any entity has issued an instrument that contains both a liability and an e(uity
component and the instrument has multiple embedded deri*ati*e features whose
*alues are interdependent% it shall disclose the existence of those features and the
effecti*e interest rate on the liability component.
D. An entity shall disclose material items of income% expense or gains and losses
resulting from financial liabilities.
E?),+ON - :)O5<
1. $hen an entity issued bonds payable for wor"ing capital needs% the proceeds from the sale of
the bonds payable
a. $ill always be e(ual to the face amount.
b. $ill always be less than to the face amount.
c. $ill always be more than to the face amount.
d. /ay be e(ual% more or less than the face amount depending on mar"et interest rate.
2. $hich of the following statements concerning discount on note payable is incorrectF
a. .iscount on note payable may be debited when an entity discounts its own note with the
ban".
b. he discount on note payable is a contra liability account which is shown as a deduction
from note payable.
c. he discount on note payable represents interest charges applicable to future periods.
d. Amorti;ing the discount on note payable causes the carrying amount of the liability to
gradually decrease o*er the life of the note.
3. +n a debt restructuring that is considered an asset swap% the gain on extinguishment is e(ual to
the
a. )xcess of the fair *alue of the asset o*er its carrying amount
b. )xcess of the carrying amount of the debt o*er the fair *alue of the asset.
c. )xcess of the fair *alue of the asset o*er the carrying amount of the debt.
d. )xcess of the carrying amount of the debt o*er the carrying amount of the asset.
A. he discount resulting from the determination of the present *alue of a note payable shall be
reported in the statement of financial position as
a. .eferred credit separate from the note.
b. .irect deduction from the face amount of the note.
c. .eferred charged separate from the note.
d. Addition to the face amount of the note.
B. On ,eptember 1% 2G12% an entity borrowed cash and signed a 2-year interest-bearing note on
which both the principal and interest are payable on ,eptember 1% 2G1A. :ow many months
of accrued interest would be included in the liability for accrued interest on .ecember 31%
2G12 and .ecember 31% 2G13F
.ecember 31% 2G12 .ecember 31% 2G13
a. A months 1C months
b. A months A months
c. 12 months 2A months
d. 2G months H months
C. he difference between the carrying amount of a financial liability extinguished and the
consideration gi*en shall
a. -e recogni;ed in profit or loss
b. -e included in e(uity
c. -e included in retained earnings
d. Not be recogni;ed
D. 4osts incurred in connection with the issuance of 1G-year bonds which is sold at a slight
premium shall be
a. 4harged to retained earnings when the bonds are issued
b. )xpensed in the year in which incurred
c. 4apitali;ed as organi;ation cost
d. 5eported in the statement of financial position as a deduction from bonds payable and
amorti;ed o*er the 1G-year bond term
H. $hich of the following statements is true in relation to the fair *alue option of measuring a
bond payableF
+. At initial recognition% an entity may re*ocably designate a bond payable at fair *alue
through profit or loss.
++. he bond payable is remeasured at e*ery year-end at fair *alue and any changes in fair
*alue are recogni;ed in other comprehensi*e income
a. + only
b. ++ only
c. -oth + and ++
d. Neither + nor ++
9. After initial recognition% bonds payable shall be measured at
+. Amorti;ed cost using the effecti*e interest method.
++. 8air *alue through profit or loss
a. + only
b. ++ only
c. )ither + or ++
d. Neither + nor ++
1G. An entity shall measure initially a note payable not designated at fair *alue through profit or
loss at
a. 8ace amount
b. 8air *alue
c. 8air *alue plus transaction cost
d. 8air *alue minus transaction cost
AN,$)5 3 :)O5<
1. . C. -
2. . D. .
3. . H. .
A. . 9. .
B. . 1G. 4
QUE"TI!N - PR!BLE#
1. :APP< 4ompany had the following long-term debt!
-onds maturing in installments% secured by machinery 1%GGG%GGG
-onds maturing on a single date% secured by realty 1%HGG%GGG
4ollateral trust bonds 2%GGG%GGG
$hat is the total amount of debenture bondsF
a. 2%GGG%GGG
b. 1%GGG%GGG
c. 1%HGG%GGG
d. G
2. A4) 4ompany incurred costs of PC%CGG when it issued% on August 31% 2G12% fi*e-
year debenture bonds dated April 1% 2G12. $hat amount of bond issue expense should
A4) report in its income statement for the year ended .ecember 31% 2G12F
a. PAAG
b. PAHG
c. P99G
d. PC%CGG
3. O-A/A 4ompany0s liability account balances at 7une 3G% 2G11% included a 1GI note
payable in the amount of P3%CGG%GGG. he note is dated October 1% 2G1G% and is
payable in three e(ual annual payments of P1%2GG%GGG plus interest. he first interest
and principal payment was made on October 1% 2G11.
On 7une 3G% 2G12% what amount should be reported as accrued interest payableF
a. 2DG%GGG
b. 1HG%GGG
c. 9G%GGG
d. CG%GGG
A. PANA.O 4ompany is experiencing financial difficulty and negotiating debt restructuring
with its creditor to relie*e it financial stress. he company has a P2%BGG%GGG note payable to
the ban". he ban" accepted an e(uity interest in PANA.O 4ompany in the form of
P2GG%GGG ordinary shares (uoted at P12 per share. he par *alue is P1G per share.
he fair *alue of the note payable on the date of restructuring is P2%2GG%GGG.
$hat amount should be recogni;ed as gain from debt extinguishment as a result of the
1e(uity swap2F
a. AGG%GGG
b. 1GG%GGG
c. BGG%GGG
d. 2GG%GGG
B. &5efer to no. A' $hat amount should be recogni;ed as share premium from the issuance of
the sharesF
a. BGG%GGG
b. 1GG%GGG
c. AGG%GGG
d. 2GG%GGG
C. he following information pertains to :i"e ours% +nc.% issuance of bonds on 7uly 1.
2G12!
8ace amount PAGG.GGG
erm 1G years
,tated interest rate CI
+nterest payment dates Annually on 7uly 1
<ield 9I
$hat is the issue price for each P1%GGG bondF
a. P1%GGG
b. PHCA
c. PHGD
d. PDGG
D. /+A/+ 4ompany issued P2%GGG%GGG face *alue of 1G-year bonds on 7anuary1. he bonds
pay interest on 7anuary and 7uly a and ha*e a stated rate of 1GI. +f the mar"et rate of interest
is HI% what will be the issue price of the bondsF
a. 2%2C2%GGG
b. 2%113%GGG
c. 2%1B9%GGG
d. 2%2D9%GGG
H. On 7uly 1% 2G11% :) 4ompany obtained P2%GGG%GGGG% 1HG-day ban" loan at an annual rate of
12I. he loan agreement re(uires :) to maintain a PAGG%GGG compensating balance in its
chec"ing account at the lending ban". :) would otherwise maintain a balance of only
P2GG%GGG in this account. he chec"ing account earns interest at an annual rate of CI.
-ased on a 3CG-day year% what is the effecti*e interest rate on the borrowingF
a. 12.GGI
b. 12.CDI
c. 13.33I
d. 13.BGI
AN"4ER" 5 PR!BLE#
1. .ebenture bonds are unsecured bonds or bonds without collateral security. 4ollateral
trust bonds are bonds secured by in*estments in shares and bonds.
2. +ncurred costs PC%CGG
x A yrs.
P2C% AGG
Amorti;ation of issue costs in 2GG9! &2C%AGGJBB' P678
he bond term is A years% se*en months% or BB months. -onds were outstanding A months
in 2G12.
3. Note payable - October 1% 2G1G 3%CGG%GGG
Payment on October 1% 2G11 &1%2GG%GGG'
-alance% October 1% 2G11 P2%AGG%GGG
Accrued interest payable from October 1% 2G11 to
7une 3G% 2G12 &2%AGG%GGG x 1GI x K' P978:888
A. Note payable 2%BGG%GGG
8air *alue of shares &2GG%GGG x 12' 2%AGG%GGG
6ain on debt extinguishment P988:888
B. 8air *alue of shares 2%AGG%GGG
Par *alue of shares &2GG%GGG x 1G' 2%GGG%GGG
,hare premium P688:888
C. otal issue price L P1%GGG &PM1% 9I% 1G' N .GC &P1%GGG'&PMA% 9I% 1G'
LP1%GGG &.A22A1' N PCG &C.A1DCC'
L P78;.
D. PM of 1 at AI for 2Gperiods .AC
PM of an ordinary annuity of 1 at AI for 2G periods 13.B9
PM of principal &2%GGG%GGG x .AC' 92G%GGG
PM of semiannual interest payments &1GG%GGG x 13.B9' 1%3B9%GGG
+ssue price of bonds P 2,279,000
H. +nterest expense&2%GGG%GGG x 12I x 1HGJ3CG' 12G%GGG
+nterest income on compensating balance
in excess of the normal chec"ing account
balance &2GG%GGG x CI x 1HGJ3CG' & C%GGG'
Net interest expense P11A%GGG
#oan 2%GGG%GGG
#ess! 4ompensating balance in excess of the
Normal chec"ing account balance & 2GG%GGG'
Net proceeds P1%HGG%GGG
)ffecti*e amount &1%HGG%GGG x 1HGJ3CG' 9GG%GGG
)ffecti*e interest rate &11A%GGGJ9GG%GGG' 92.<;=
REFERENCE">
+ntermediate Accounting@ Molume 2@ 2G12 edition@
-y! Nenita ,. 5obles and Patricia /. )mpleo
8inancial Accounting@ Molume 2@ 2G12 edition@
-y! 4onrado . Malix% 7ose 8. Peralta and 4hristian Aris /. Malix
Practical Accounting@ Molume 1@ 2G11 edition@
-y! 4onrado . Malix and 4hristian Aris /. Malix
heory of Accounts@ Molume 2@ 2G12 edition@
-y! 4onrado . Malix and 4hristian Aris /. Malix
1.