1. Modul ke: Fakultas Program Studi Pengantar Akuntansi II LONG TERM LIABILITIES – BONDS PAYABLE Nurul Hidayah, SE,Ak,MSi Hari Setiyawati, SE,Ak,MSi 06 FEB Akuntansi

2. Modul ke: Fakultas Program Studi Financing Corporations 15-1 A bond is simply a form of an interest-bearing note. Like a note, a bond requires periodic interest payments, and the face amount must be repaid at the maturity date.

3. Modul ke: Fakultas Program Studi 15-2 Bonds Payable  A corporation that issues bonds enters into a contract (called a bond indenture or trust indenture) with the bondholders.  Usually, the face value of each bond, called the principal, is Rp1,000,000 or a multiple of Rp1,000,000.  Interest on bonds may be payable annually, semiannually, or quarterly. Most pay interest semiannually.

4. Modul ke: Fakultas Program Studi  When all bonds of an issue mature at the same time, they are called term bonds. 15-2  If the maturity dates are spread over several dates, they are called serial bonds.  Bonds that may be exchanged for other securities are called convertible bonds.

5. Modul ke: Fakultas Program Studi  Bonds issued on the basis of the general credit of the corporation are debenture bonds. 15-2  Bonds that a corporation reserves the right to redeem before their maturity are called callable bonds. 15-2

6. Modul ke: Fakultas Program Studi 15-2 Pricing of Bonds Payable When a corporation issues bonds, the price that buyers are willing to pay depends upon three factors: 1.The face amount of the bonds, which is the amount due at the maturity date. 2.The periodic interest to be paid on the bonds. This is called the contract rate or the coupon rate. 3.The market or effective rate of interest.

7. Modul ke: Fakultas Program Studi 15-2 The market or effective rate of interest is determined by transactions between buyers and sellers of similar bonds. The market rate of interest is affected by a variety of factors, including: 1.investors assessment of current economic conditions, and 2.future expectations.

8. Modul ke: Fakultas Program Studi 17 MARKET RATE = CONTRACT RATE Selling price of bond = Rp1,000,000 Rp1,000,000 10% payable annually 15-2 If the contract rate equals the market rate of interest, the bonds will sell at their face amount.

9. Modul ke: Fakultas Program Studi 18 MARKET RATE > CONTRACT RATE Selling price of bond < Rp1,000,000 – Discount Rp1,000,000 10% payable annually 15-2 If the market rate is higher than the contract rate, the bonds will sell at a discount.

10. Modul ke: Fakultas Program Studi 19 MARKET < CONTRACT RATE Selling price of bond > Rp1,000,000 + Premium Rp1,000,000 10% payable annually 15-2 If the market rate is lower than the contract rate, the bonds will sell at a premium.

11. Modul ke: Fakultas Program Studi 24 15-2 Present Value of 2-Year, 10% Bond Present value of face value of Rp1,000,000 due in 2 years at 10% compounded annually: Rp1,000,000 x 0.82645 (Exhibit 3: n = 2, i = 10%)(Slide 21)Rp 826,450 Present value of 2 annual interest payments of 10% compounded annually: Rp100,000 x 1.73554 (Exhibit 4: n = 2, i = 10%) (Slide 23) 173,550 Total present value of bondRp1,000,000

12. Modul ke: Fakultas Program Studi Pada tanggal 1 Januari 2012 perusahaan menerbitkan obligasi Rp100,000,000 12%, jangka waktu obligasi 5 tahun; bunga obligasi dibayarkan secara 6 bulanan. Tingkat bunga pasar 12%. 15-3 Bonds Issued at Face Amount

13. Modul ke: Fakultas Program Studi 15-3 Present value of face amount of Rp100,000,000 due in 5 years at 12% compounded annually: Rp100,000,000 x 0.55840 (Exhibit 3: n = 10, i = 6%) Rp 55,840,000 Present value of 10 interest payments of Rp6,000,000 at 12% compounded semiannually: Rp6,000,000 x 7.36009 (Exhibit 4: n = 10; i = 6%) 44,160,000* Total present value of bondsRp100,000,000 *Because the present value tables are rounded to five decimal places, minor rounding differences may appear in this illustration. 29

14. Modul ke: Fakultas Program Studi 30 15-3 Issued Rp100,000,000 bonds payable at face amount. Bonds Payable 100 000 000 Jan. 1Cash100 000 000 2012

15. Modul ke: Fakultas Program Studi 31 On June 30, an interest payment of Rp6,000,000 is made (Rp100,000,000 x.12 x 6/12). 15-3 June 30Interest Expense6 000 000 Cash 6 000 000 Paid six months’ interest on bonds.

16. Modul ke: Fakultas Program Studi 32 The bond matured on December 31, 2011. At this time, the corporation paid the face amount to the bondholder. 15-3 Cash 100 000 000 Paid bond principal at maturity date. Dec. 31Bonds Payable100 000 000 2016

17. Terima Kasih Hari Setiyawati dan Nurul H