Ias 39
This query is : Resolved
19 May 2013
Loan availed 50 million payable after 10 years at 0 % interst rate. What would be the accounting treatment if i book my liability at its present value lets say 40 million . kindly guide me in the line of IAS 39. What would be overall treatment in the first year, and for the next 10 years. Kindly provide immediate guidance
21 May 2013
Firstly find out interest rate that is prevalent under normal circumstances considering time and quantum of loan.
Then calculate PV of 50 million payable after 10 years at such interest rate. It will be classified as Financial Liability (FL) in books.
Show this FL at Amortised Cost every year. It will be Initial recognition plus interest (rate as above) less any payments (nil in your case).
Interest charges is shown under finance charges.
Then calculate PV of 50 million payable after 10 years at such interest rate. It will be classified as Financial Liability (FL) in books.
Show this FL at Amortised Cost every year. It will be Initial recognition plus interest (rate as above) less any payments (nil in your case).
Interest charges is shown under finance charges.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Capital gain from sale of house property
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- TDS on Purchase of Immovable Property by NRI from NRI
- Transporter Declaration form
- LC charges in relation to Asset purchased should be Capitalised ?
- Value of property in capital gain
- FORM 26A APPLICABILITY
- Copyright software
- Multiple trade mark
- Opting our of sec 44AD
- GST Treatment of Insurance Commission for Existing GST Holder
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
