Fair value of financial liability

Hi, If carried at fair value then the initial entry will be measured using the PV of the future cash flows as its fair value, which may be different to the initial cash proceeds. Any difference is recognised through profit or loss. The fair value of the first loan on 30 Nov 2015 would be the present value of the final payment of $59.98m discounted back to present value using the current market rate of interest (7.4%). As both loans are repaid on the same date and at the same amounts, their present value of 30 Nov will both be the same as we are discounting the same figure by the same amount. Thanks