DEC 2018

Nothing is "initially at FV" with the exception of a granted asset which can be recognised at FV rather than $0 cost. Initially measurement of pretty much anything else is cost. So $30m received now and £34m to be repaid in 10 year years - no interest. All amounts and timings are fixed and certain - there is no need for this to be subsequently recognised at anything other than a "cost" model - remember that FV was "invented" to provide more relevant information than a cost model. So, as you say, this is a financial instrument, the relevant standard is IFRS 9 and the effective interest rate would be calculated in order to calculate the finance cost, which would increase each year and total $4m over 10 years. (Pre-standards on financial instruments the $4m would most likely have been spread evenly over 10 years.)