• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

Congratulations to Jamil from Pakistan and Jeeva from Malaysia - Global Prize winners!
see all ACCA December 2022 Genius Hunt Competition winners >>

Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>

employee compensation: 0% interest loan

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › employee compensation: 0% interest loan

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by Stephen Widberg.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • April 29, 2021 at 11:17 am #619170
    Noah098
    Member
    • Topics: 935
    • Replies: 352
    • ☆☆☆☆☆

    sir this comes as very strange to me. but is that right that if a loan has been given to an employee at 0% inters rate then the loss will be accounted for under IAS 19 employee benefits as employee remuneration. and The employee compensation would be charged to profit or loss over the period. Recognising it on a straight line basis equal parts charged to each period, and the remaining will be recognised as a prepayment on the statement of financial position.

    And what if we don’t talk about it in this manner. Because i simply thought that it would be treated as with any other entity, the same rules of converting to PV and accounting for loss, nothing like the former stuff on employee compensation.
    would i los marks for such a simplistic calculation, which is devoid of complexities. Or those complexities are in fact necessary to score full marks?

    April 30, 2021 at 3:10 pm #619311
    Stephen Widberg
    Keymaster
    • Topics: 12
    • Replies: 2842
    • ☆☆☆☆☆

    No – if you worked out that FV needs you to discount the amount of the loan, you are already in prize winner corner. If you put down everything in the answer you will score 200% and 100 will then be deducted because you are too clever.

    The question does come up reasonably often, though. You can probably see that the discount is a ‘sort of’ employee benefit’.

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

ACCA News:

 

ACCA My Exam Performance for non-variant Applied Skills exams is available NOW

NEW! Download the ACCA Pass Guide

FREE Verifiable CPD for ACCA Members

ACCA mock exams and debrief videos

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

Donate

If you have benefited from OpenTuition please donate.

ACCA CBE 2023 Exams

Instant Poll * How was your exam, and what was the result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Latest comments

  • Amalsudheesh on FA Chapter 6 Questions Depreciation
  • Ravendra Arjune on FA Chapter 22 Questions Group Accounts The Consolidated Statement of Financial Position (1)
  • Ken Garrett on The Nature of Performance Management – ACCA Advanced Performance Management (APM)
  • Mustafy on Objective of financial reporting – ACCA Financial Reporting (FR)
  • John Moffat on IAS 16 Property, Plant and Equipment – ACCA Financial Accounting (FA) lectures

Copyright © 2023 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy