1. Financial Reporting Issues:
   • The drop in the market price of Duakwanta’s debt after issuance indicates a perceived increase in the company’s credit risk. Under IFRS 9 – Financial Instruments, this is important for determining whether any remeasurement of the debt is required.
2. Initial Measurement and Subsequent Accounting:
   • The debt issued by Duakwanta was likely measured at fair value upon initial recognition, with any transaction costs amortized over the life of the debt. After initial recognition, the debt would typically be accounted for at amortised cost unless it was designated as “held for trading,” in which case it would be measured at fair value through profit or loss (FVTPL).
3. Impact of Credit Risk on Fair Value:
   • If the debt is measured at amortised cost, changes in the market value due to the company’s credit risk do not affect the carrying amount of the debt in Duakwanta’s financial statements. However, under IFRS 7 – Financial Instruments: Disclosures, Duakwanta must provide disclosures regarding the fair value of the debt and any changes in its own credit risk that impact the market value.
4. Disclosures:
   • Duakwanta is required to disclose the following:
     • The fair value of its debt at the reporting date.
     • The impact of the change in its own credit risk on the debt’s fair value.
     • Any changes in market conditions that contributed to the fall in the debt’s market price (such as concerns about the company’s cash flow and ability to meet interest obligations).

   This disclosure allows financial statement users to understand the extent of Duakwanta’s financial risk and the market’s perception of the company’s creditworthiness.

Conclusion:

• The debt is unlikely to be remeasured in Duakwanta’s financial statements if it is accounted for at amortised cost. However, the company must provide detailed disclosures about the impact of credit risk on the fair value of its debt and the reasons for the market’s perception of increased risk.