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This is a question from December 2009 exam:
A company borrowed $47 million on 1 December 2008 when the market and effective interest rate was 5%. On
30 November 2009, the company borrowed an additional $45 million when the current market and effective
interest rate was 7.4%.
Both financial liabilities are repayable on 30 November 2013 and are single payment
notes, whereby interest and capital are repaid on that date.
Discuss the accounting for the above financial liabilities under current accounting standards using using fair value as at 30 November 2009. Please explain me the Fair value loss calculated I don’t understand it at all
post this question in Ask Tutor, Chris would help , i dont get the answer under fair value either