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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Financial liability
Question) A company issues 5% loan notes at their nominal value of $20 000 with an effective rate of 5%. The loan notes are repayable at par after 4 years.
What amounts will be shown in the statement of profit or loss and statement of financial position for years 1-4 ?
The figures in the answer key showed the following:
Year 3 current liabilities $20000
Year 4 current liabilities $0
I understand why year 3 is classified as current liabilities, but i just want to know if it does matter, if we classify year 4 as current or non current liability since its only $0 .
How can it be either a current or a non-current liability … it’s not any kind of liability! It’s $zero!!