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    Question

    Which of the following best describes ‘amortisation of

    debenture issue expenses’?
    A Charge to capital reserve Correct Answer Incorrect Answer
    B Spread over life of debentures as finance cost or deduction from security premium as per policy Correct Answer Incorrect Answer
    C Immediately charged to P&L as loss only Correct Answer Incorrect Answer
    D Added to debenture liability Correct Answer Incorrect Answer
    E Treated as contingent liability Correct Answer Incorrect Answer

    Solution

    Issue expenses are amortised over life (usually to P&L) per accounting policy; can be deducted from premium when appropriate.

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