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OUTCOMES OF TOPIC After studying this topic related to debt financing and interest, you should be able to: ✓ Understand the VAT consequences of debt financing transactions ✓ Understand the tax consequences related to the a dvance and repayment of debt ✓ Define the term “instrument” ✓ Define the term “interest” ✓ Understand what is meant by “Yield to maturity” ✓ Understand what is meant by “Accrual periods” ✓ Understand what is meant by “Adjusted initial amount” ✓ Understand the impact of interest on the taxable income of the lender ✓ Understand the impact of interest on the taxable income of the borrower ✓ Calculate interest in terms of S24J ✓ Understand the tax consequences arising on the early settlement or sale/transfer of a debt instrument ✓ Understand when an alternative method of the determination of interest could be applied ✓ Interpret financial statements with reference to the accounting policies and notes to the financial statements to determine the accounting treatment of interest expense ✓ Complete the Tax Computation section on the ITR14 tax return to adjust for finance (interest) expenses where the accounting and tax treatment differ

OUTCOMES OF TOPIC After studying this topic related to debt financing and interest, you should be able to: ✓ Understand the VAT consequences of debt financing transactions ✓ Understand the tax consequences related to the a dvance and repayment of debt ✓ Define the term “instrument” ✓ Define the term “interest” ✓ Understand what is meant by “Yield to maturity” ✓ Understand what is meant by “Accrual periods” ✓ Understand what is meant by “Adjusted initial amount” ✓ Understand the impact of interest on the taxable income of the lender ✓ Understand the impact of interest on the taxable income of the borrower ✓ Calculate interest in terms of S24J ✓ Understand the tax consequences arising on the early settlement or sale/transfer of a debt instrument ✓ Understand when an alternative method of the determination of interest could be applied ✓ Interpret financial statements with reference to the accounting policies and notes to the financial statements to determine the accounting treatment of interest expense ✓ Complete the Tax Computation section on the ITR14 tax return to adjust for finance (interest) expenses where the accounting and tax treatment differ

OUTCOMES OF TOPIC After studying this topic related to debt financing and interest, you should be able to: ✓ Understand the VAT consequences of debt financing transactions ✓ Understand the tax consequences related to the a dvance and repayment of debt ✓ Define the term “instrument” ✓ Define the term “interest” ✓ Understand what is meant by “Yield to maturity” ✓ Understand what is meant by “Accrual periods” ✓ Understand what is meant by “Adjusted initial amount” ✓ Understand the impact of interest on the taxable income of the lender ✓ Understand the impact of interest on the taxable income of the borrower ✓ Calculate interest in terms of S24J ✓ Understand the tax consequences arising on the early settlement or sale/transfer of a debt instrument ✓ Understand when an alternative method of the determination of interest could be applied ✓ Interpret financial statements with reference to the accounting policies and notes to the financial statements to determine the accounting treatment of interest expense ✓ Complete the Tax Computation section on the ITR14 tax return to adjust for finance (interest) expenses where the accounting and tax treatment differ

OUTCOMES OF TOPIC After studying this topic related to debt financing and interest, you should be able to: ✓ Understand the VAT consequences of debt financing transactions ✓ Understand the tax consequences related to the a dvance and repayment of debt ✓ Define the term “instrument” ✓ Define the term “interest” ✓ Understand what is meant by “Yield to maturity” ✓ Understand what is meant by “Accrual periods” ✓ Understand what is meant by “Adjusted initial amount” ✓ Understand the impact of interest on the taxable income of the lender ✓ Understand the impact of interest on the taxable income of the borrower ✓ Calculate interest in terms of S24J ✓ Understand the tax consequences arising on the early settlement or sale/transfer of a debt instrument ✓ Understand when an alternative method of the determination of interest could be applied ✓ Interpret financial statements with reference to the accounting policies and notes to the financial statements to determine the accounting treatment of interest expense ✓ Complete the Tax Computation section on the ITR14 tax return to adjust for finance (interest) expenses where the accounting and tax treatment differ

OUTCOMES OF TOPIC After studying this topic related to debt financing and interest, you should be able to: ✓ Understand the VAT consequences of debt financing transactions ✓ Understand the tax consequences related to the a dvance and repayment of debt ✓ Define the term “instrument” ✓ Define the term “interest” ✓ Understand what is meant by “Yield to maturity” ✓ Understand what is meant by “Accrual periods” ✓ Understand what is meant by “Adjusted initial amount” ✓ Understand the impact of interest on the taxable income of the lender ✓ Understand the impact of interest on the taxable income of the borrower ✓ Calculate interest in terms of S24J ✓ Understand the tax consequences arising on the early settlement or sale/transfer of a debt instrument ✓ Understand when an alternative method of the determination of interest could be applied ✓ Interpret financial statements with reference to the accounting policies and notes to the financial statements to determine the accounting treatment of interest expense ✓ Complete the Tax Computation section on the ITR14 tax return to adjust for finance (interest) expenses where the accounting and tax treatment differ