Q：Which of the following statements are true regarding accounting for debt instruments as required by IAS 32?
　　A. To calculate the annual finance cost the effective rate of interest implicit in the debt instrument has to be calculated.
　　B. All the statements listed here are correct.
　　C. The carrying amount of debt should be reduced by payments made in respect of the debt in that period.
　　D. The finance cost of debt is the difference between total payments required to be made and the initial carrying value of the debt.
　　A：The correct answer is: All the statements are correct.
　　The carrying amount of debt should be reduced by payments made in respect of the debt in that period. The finance cost covers interest costs or dividends plus any premium payable on redemption or other payments. The finance cost must be charged at a constant rate over the instrument’s life so the effective rate of interest implicit in the debt instrument must be known at the outset.