Presentation is loading. Please wait.

Presentation is loading. Please wait.

WEEK 11. EXERCISE 1 st july 2007 PT Cahaya purchases Rp 50.000.000,- of 8% bonds of PT.DITHO due in 8 years and 9 months later. The purchase price is.

Similar presentations


Presentation on theme: "WEEK 11. EXERCISE 1 st july 2007 PT Cahaya purchases Rp 50.000.000,- of 8% bonds of PT.DITHO due in 8 years and 9 months later. The purchase price is."— Presentation transcript:

1 WEEK 11

2 EXERCISE 1 st july 2007 PT Cahaya purchases Rp 50.000.000,- of 8% bonds of PT.DITHO due in 8 years and 9 months later. The purchase price is Rp 41.706.000 plus interest accrued that paid on 1 st april and 1 st of October. On 30 th June 2014 PT Cahaya sell that bonds on Rp. 47.350.000,- Required questions: 1. Calculate bonds’ cost 2. Calculate interest accrued 3. Journals to record all transactions

3 BASIC CONCEPT Long-term investment is INVESTMENT TO OTHER COMPANIES FOR MORE THAN ONE ACCOUNTING PERIOD ( > 1 YEAR)

4 LONG TERM INVESTMENT A DEBT INVESTMENT IN WHICH INVESTOR LOANS MONEY TO ENTITY AT A DEFINE PERIOD OF TIME GAINING INTEREST RATE BONDS SECURITY THAT SIGNIFIES OWNERSHIP IN A CORPORATION AND REPRESENT A CLAIM ON CORPORATION’S ASSET & EARNING GAINING DIVIDEN SHARE / STOCK

5 PURPOSES GAINING ADDITIONAL REVENUE GAINING ADDITIONAL REVENUE BUILDING A NETWORK WITH CLIENTS / OTHER CORPORATIONS CONTROLLING OTHER COMPANIES

6 ACCOUNTING FOR LONG-TERM INVESTMENT LONG-TERM INVESTMENT IS RECORDED BASED ON ITS COST FOR BOTH BONDS AND SHARE HOW TO CALCULATE IT?

7 TYPES OF BONDS secured / unsecured bonds : mortgage bonds, debenture Term bonds & Serial Bonds Convertible bonds & callable bonds

8 COST FACE AMOUNT / NOMINAL VALU DIFFERENCE PREMIUM (AGIO)/ DISCOUNT ( DISAGIO) AMORTIZED BASED ON THE USEFUL LIFE AMOTIZATION IS CALCULATED ON THE END OF ACCOUNTING PERIOD

9 EXAMPLE 1 MAY 2004 PT. FIA BOUGHT 1.000 BONDS OF PT XYZ WITH A NOMINAL VALUE OF RP 10.000; / BOND AT 105% PLUS A BROKERAGE FEE RP 700.000,. BONDS’ INTEREST RATE WAS 12%. INTEREST IS PAID ON 1/3 – 1/9. BONDS USEFUL LIFE WAS 5 YEARS. Calculate: 1. Cost 2. Accrued interest 3. Journals 4. Adjustment journal at 31 December

10 TGLKETERANGANDEBITKREDIT 1 MAYINVEST ON BOND (PT.FIA) INTEREST REVENUE CASH 11.200.00 200.000; 11.400.000 1 SeptCASH INTEREST REVENUE 600.000; 600.000 31 DecINTEREST RECEIVABLE INTEREST REVENUE 400.000; INTEREST REVENUE INVESTMENT ON BOND (PT.FIA) (TO RECORD AMORTIZED OF PREMIUM) 160.000;

11 SELLING BONDS BEFORE MATURITY 1. CALCULATE BONDS’ MARKET PRICE AND ADDITIONAL COS 2. CALCULATE CARRYING AMOUNT OF BONDS INVESTMENT 3. DIFFERENTS: (1) VS (2) = PROFIT/LOSS ON BONDS SELLING CA = COST – PREMIUM /AGIO THAT HAS BEEN AMOTIZED CA = COST + DISCOUNT / DISAGIO HAS NOT BEEN AMOTIZED YET PROFIT IF : (1) > (2) LOSS IF : (1) < (2)

12 EXAMPLE 1 OCT 2006 PT. FIA SOLD PT XYZ’S BONDS WITH A NOMINAL VALUE OF RP 4.000.000; AT 110%. ITS BONDS INTEREST WAS 12%. SELLING FEE WAS RP 200.000; HARGA KURS : 110% X 4.000.000;RP 4.400.000; BIAYA PENJUALANRP 200.000; HARGA JUAL STL BIAYA PENJUALANRP 4.200.000; HARGA PROLEHANRP 4.480.000; AMORTISASI AGIO : TH 2004RP 64.000; TH 2005RP 96.000; TH 2006RP 72.000; RP 232.000; NILAI BUKU OBLIGASIRP 4.248.000; RUGI PENJUALAN OBLIGASIRP 48.000; HARGA KURS : 110% X 4.000.000;RP 4.400.000; BIAYA PENJUALANRP 200.000; HARGA JUAL STL BIAYA PENJUALANRP 4.200.000; HARGA PROLEHANRP 4.480.000; AMORTISASI AGIO : TH 2004RP 64.000; TH 2005RP 96.000; TH 2006RP 72.000; RP 232.000; NILAI BUKU OBLIGASIRP 4.248.000; RUGI PENJUALAN OBLIGASIRP 48.000; + KURS VALUE: 110% X 4.000.000;RP 4.400.000; SELLING FEERP 200.000; MARKET PRICERP 4.200.000; COST VALUE OF BONDSRP 4.480.000; PREMIUM’S AMOTIZATION: 2004RP 64.000; 2005RP 96.000; 2006RP 72.000; RP 232.000; CARRYINGAMOUNTRP 4.248.000; LOSS OF BONDS SELLINGRP 48.000;

13 BONDS INTEREST: (1/12 X12/100) X RP 4.000.000; = 40.000; 01 OCTOBER 2006 : CASHRP 4.240.000; LOSS ON BONDS SELLINGRP 48.000; INVESTMENT ON BONDS (PT.FIA)RP 4.248.000; INTEREST REVENUERP 40.000;


Download ppt "WEEK 11. EXERCISE 1 st july 2007 PT Cahaya purchases Rp 50.000.000,- of 8% bonds of PT.DITHO due in 8 years and 9 months later. The purchase price is."

Similar presentations


Ads by Google