on 1 january 2010 an entity issues 500 million euro 1 10 year bonds which are traded 599079

Partial derecognition of debt

On 1 January 2010 an entity issues 500 million €1 10-year bonds which are traded in the capital markets. Issue costs of €15 million were incurred and the carrying value of the bonds at 31 December 2013 is €490 million. On 31 December 2013 the entity makes a market purchase of 120 million bonds at their then current market price of €0.97. The entity records the following accounting entry: