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hule4 hule4
wrote...
Posts: 210
5 years ago
If a financial instrument is determined to be in substance equity, what are the reporting
implications?
Textbook 
Intermediate Accounting, Volume 2

Intermediate Accounting, Volume 2


Edition: 5th
Authors:
Read 41 times
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Replies
wrote...
5 years ago
Any interest payments will be treated as dividend payments with retained earnings being
reduced  in other words the interest does not flow through the income statement. The
original proceeds will be recorded as equity.
hule4 Author
wrote...
5 years ago
Thank you for responding so quickly, you're my hero
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