[gremms]

Thanks for the reply, example as follows:

From ACCA What is a financial instrument.
Example 3: Accounting for a financial liability at amortised cost
Broad raises finance by issuing $20,000 6% four-year loan notes on the first day of the current accounting period.

No present value of the liability in the answer.

However in BPP Financial instrument chapter 11 Q2.4 a convertible bonds is issued with the option to convert to shares. Guess present value is calculated here to workout the equity portion.

In the example from ACCA why does the loan not get valued at present value at year 4 and held on the balance sheet allocating the necessary interest and value as the periods move on?

Many Thanks

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