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burse co june 2008 part a

This topic has 1 reply, 2 voices, and was last updated 11 years ago by John Moffat.

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April 10, 2014 at 6:26 pm #164989
aishaasad
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hello Sir,
i dont understand tat why in the answer the mv of bank loan is put as $2m which is the book vallue per the question.
Regards
April 11, 2014 at 7:23 am #165011
John Moffat
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If you have a bank loan of $2M then the value is $2M and $2M is what appears in the Statement of financial position.
A bank loan cannot have a different market value from the book value.
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