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 .