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Hi
Need to ask that when an entity issues Loan Notes as a purchase consideration when acquiring the subsidiary, will this Loan Notes be subsequently measured at amortised cost or just the physical interest payment in the form of cash?Thanks
Hi Ikmughai
I think loan notes are a financial liability under IFRS9, therefore, if the entity is not holding them for trading, they should be subsequently measured at amortised costs. For amortised cost model, interests are added to and payments are deducted from the carrying amount of the loan notesIt’s my opinion
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