Are compound financial instruments examinable in F7?
Yes. Candidates need to know the definition and treatment, including related finance costs, of debt and equity. A compound instrument such as a convertible loan has both equity and debt components. Questions will expect candidates to allocate the initial proceeds of a compound instrument to its debt and equity component and calculate the finance cost of the debt based on the effective interest rate of the debt.
Related Questions
- There seems to be a big gap between financial instruments examined in F7 and P2. Does ACCA have any advice for candidates preparing for P2?
- There seems to be a big gap between financial instruments examined in F7 and P2. Does ACCA have any advice for students preparing for P2?
- Are compound financial instruments examinable in F7?
