Please can somebody advise how I go about solving “The debentures are 10% pa, due 1 July 2017, and are secured by a floating charge over the inventory” this has me stumped as to what I should do with it in the Financial statement and Notes
2 years, 8 months agoChandrika Edirisinghe
It’s a secured debentures. “Floating charge ” means security is non specific current asset/s , usually it’s inventory , Trade debtors or both. In this case provided security was inventory. It is a disclosure requirement according to accounting standards. Disclose by a way of a note.