on 1 january 2011 Swiss issud three year 5% $30,000 loan notes at norminal value when the effective rate of interest is also 5%. the loan notes will be redeemed at par. the liability is classified at FVTPL. At the end of the first accounting period market interest rates have risen to 6% Required explain and illustrate how the loan is accounted for in the financial statements of Swiss in the year ended 31 December, 2011.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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on 1 january 2011 Swiss issud three year 5% $30,000 loan notes at norminal value when the effective rate of interest is also 5%. the loan notes will be redeemed at par. the liability is classified at FVTPL. At the end of the first accounting period market interest rates have risen to 6%

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explain and illustrate how the loan is accounted for in the financial statements of Swiss in the year ended 31 December, 2011.

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