Query IAS-39

Hi Pankaj,

Not required to measure and recognize the Interest receivable.

Reasoning

1.       The balance interest receivable as at the reporting date, if at all recognized, is a Financial asset for the enterprise

2.       This Financial asset needs to be measured at Amortized cost using effective interest rate method, as we know.

3.       Effective interest rate is the IRR of the cash flows receivable over the period

4.       So having computed the effective interest rate based on the interest receivable over the life, if we again discount such interest receivable using that IRR, the present value will be Nil

5.       Hence from IFRS Convergence view,  all interest bearing loans shall be carried at the same value in IFRS as they were carried in IGAAP.