Period Principal Nominal Rate Interest
2,000,000.00 10% 200,000.00
Annual 1 1 1
2,000,000.00 10% 200,000.00
6
333,333.33 Interest
10% 12%
Period Principal Nominal Effective Amortization Balance
- - + 1,752,225.03
0 1,752,225.03
1 200,000.00 210,267.00 10,267.00 1,762,492.03
2 200,000.00 211,499.04 11,499.04 1,773,991.08
3 200,000.00 212,878.93 12,878.93 1,786,870.01
4 200,000.00 214,424.40 14,424.40 1,801,294.41
5 200,000.00 216,155.33 16,155.33 1,817,449.74
6 200,000.00 218,093.97 18,093.97 1,835,543.71
7 200,000.00 220,265.24 20,265.24 1,855,808.95
8 200,000.00 222,697.07 22,697.07 1,878,506.03
9 200,000.00 225,420.72 25,420.72 1,903,926.75
10 200,000.00 228,471.21 28,471.21 1,932,397.96
11 200,000.00 231,887.76 31,887.76 1,964,285.71
12 2,000,000.00 200,000.00 235,714.29 35,714.29 (0.00)
2,400,000.00 2,647,774.97
Period Principal Nominal Rate Interest
1,000,000.00 10% 100,000.00 Selling Price 1,000,000.00
Annual 1 1 1 Transaction Cost
1,000,000.00 10% 100,000.00 Total
Interest
10% 9.71062149%
Period Principal Nominal Effective Amortization Balance
- - + 980,000.00
0 1,020,000.00
1 100,000.00 99,048.34 (951.66) 1,019,048.34
2 100,000.00 98,955.93 (1,044.07) 1,018,004.27
3 100,000.00 98,854.54 (1,145.46) 1,016,858.81
4 100,000.00 98,743.31 (1,256.69) 1,015,602.12
5 100,000.00 98,621.28 (1,378.72) 1,014,223.39
6 100,000.00 98,487.39 (1,512.61) 1,012,710.79
7 100,000.00 98,340.51 (1,659.49) 1,011,051.30
8 100,000.00 98,179.36 (1,820.64) 1,009,230.67
9 100,000.00 98,002.57 (1,997.43) 1,007,233.24
10 100,000.00 97,808.61 (2,191.39) 1,005,041.84
11 100,000.00 97,595.81 (2,404.19) 1,002,637.65
12 1,000,000.00 100,000.00 97,362.35 (2,637.65) (0.00)
1,200,000.00 1,180,000.00
2,000,000.00 0.2567 513,350.19
200,000.00 6.1944 1,238,874.85
1,752,225.03
PV factor Principal Interest
10% 9% 8%
1.0000 1.0000 1.0000
0.8929 0.9174 0.9174 - 178,571.43
0.7972 0.8417 0.8417 - 159,438.78
0.7118 0.7722 0.7722 - 142,356.05
0.6355 0.7084 0.7084 - 127,103.62
0.5674 0.6499 0.6499 - 113,485.37
0.5066 0.5963 0.5963 - 101,326.22
0.4523 0.5470 0.5470 - 90,469.84
0.4039 0.5019 0.5019 - 80,776.65
0.3606 0.4604 0.4604 - 72,122.00
0.3220 0.4224 0.4224 - 64,394.65
0.2875 0.3875 0.3875 - 57,495.22
0.2567 0.3555 0.3555 513,350.19 51,335.02
513,350.19 1,238,874.85
@
98 980,000.00
40,000.00
1,020,000.00
10% 9% 8%
1.0000 1.0000 1.0000 - -
0.9091 0.9174 0.9259 90,909.09 91,743.12
0.8264 0.8417 0.8573 82,644.63 84,168.00
0.7513 0.7722 0.7938 75,131.48 77,218.35
0.6830 0.7084 0.7350 68,301.35 70,842.52
0.6209 0.6499 0.6806 62,092.13 64,993.14
0.5645 0.5963 0.6302 56,447.39 59,626.73
0.5132 0.5470 0.5835 51,315.81 54,703.42
0.4665 0.5019 0.5403 46,650.74 50,186.63
0.4241 0.4604 0.5002 42,409.76 46,042.78
0.3855 0.4224 0.4632 38,554.33 42,241.08
0.3505 0.3875 0.4289 35,049.39 38,753.29
0.3186 0.3555 0.3971 31,863.08 35,553.47
318,630.82 355,534.73
1,000,000.00 1,071,607.25
Total
-
178,571.43
159,438.78
142,356.05
127,103.62
113,485.37
101,326.22
90,469.84
80,776.65
72,122.00
64,394.65
57,495.22
564,685.20
1,752,225.03
-
92,592.59
85,733.88
79,383.22
73,502.99
68,058.32
63,016.96
58,349.04
54,026.89
50,024.90
46,319.35
42,888.29
39,711.38
397,113.76
1,150,721.56
FVTOCI FAAC
Initial Measurement Investment in Bonds - FVTOCI Investment in Bonds - FAAC
Cash (inclusive of transaction cost) Cash (inclusive of transaction cost
Subsequent 1 Investment in Bonds - FVTOCI
Unrealized Gain - OCI
or
Unrealized Loss - OCI
Investment in Bonds - FVTOCI
To record increase/decrease in fair value of the Investment
2 Cash or Interest Receivable Cash or Interest Receivable
Interest Income Interest Income
To record collection or accrual of interest To record collection or accrual of interest
3 Investment in Bonds - FVTOCI Investment in Bonds - FAAC
Interest Income Interest Income
or or
Interest Income Interest Income
Investment in Bonds - FVTOCI Investment in Bonds - FAAC
To record amortization of discount/premium To record amortization of discount/premium
Derecognition Cash (net of transaction cost) Cash (net of transaction cost)
Unrealized gain - OCI
Loss on sale - P&L Loss on sale - P&L
Investment in Bonds - FVTOCI Investment in Bonds - FAAC
Gain on sale - P&L Gain on sale - P&L
Unrealized loss - OCI
Interest Income/Receivable Interest Income/Receivable
Reclassification
To FVTPL Investment in Bonds - FVTPL (@FV) Investment in Bonds - FVTPL (@FV)
Unrealized gain - OCI Reclassification loss - P&L
Reclassification loss - P&L Investment in Bonds - FAAC (@AC
Investment in Bonds - FVTOCI (@ FV) Reclassification gain - P&L
Reclassification gain - P&L
Unrealized loss - OCI
To FAAC Investment in Bonds - FAAC (@AC)
Unrealized gain - OCI
Investment in Bonds - FVTOCI (@ FV)
Unrealized loss - OCI
To FVTOCI Investment in Bonds - FVTOCI (@ FV)
Reclassification loss - OCI
Investment in Bonds - FAAC (@AC
Reclassification gain - OCI
AAC FVTPL
Investment in Bonds - FVTPL
Brokers and commission expense
usive of transaction cost) Cash
Investment in Bonds - FVTPL
Unrealized Gain - P&L
or
Unrealized Loss - P&L
Investment in Bonds - FVTPL
To record increase/decrease in fair value of the Investment
Cash or Interest Receivable
Interest Income
r accrual of interest To record collection or accrual of interest
t in Bonds - FAAC
n of discount/premium
Cash (net of transaction cost)
Loss on sale - P&L
t in Bonds - FAAC Investment in Bonds - FVTPL
Gain on sale - P&L
come/Receivable Interest Income/Receivable
- FVTPL (@FV)
t in Bonds - FAAC (@AC)
ation gain - P&L
Investment in Bonds - FAAC (@FV)
Investment in Bonds - FVTPL (@FV = CV)
- FVTOCI (@ FV) Investment in Bonds - FVTOCI (@FV)
Investment in Bonds - FVTPL (@FV = CV)
t in Bonds - FAAC (@AC)
ation gain - OCI
4,097,749.00 4,000,000.00
0.11 0.12
450,752.39 480,000.00 29,247.61
