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In b part
How does gain of 2.35 m come? In fair value model
What is this gain of?
And one more gain of 2m is given what it’s for?(This is now Q57 – an ancient old syllabus question – when they used to ask eccentric discussion questions for 25 marks?
He’s saying that (hypothetically) if the loan was measured at FV – it would be a different figure, which is an important point.
In terms of where the numbers in the last sentence come from, I have never been able to unravel them.
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