financial asset

? took it from Kaplan study text understanding 8

On 1 January 20X1 Magpie lends $2m to the supplier
the loan will be repaid in two year’s time
it is measured at amortised cost
market interest rate is 8%
accounting entries 31 december 20×1

solution
2*(1/1.08^2)=1.71

Dr FA-1.71
Dr P/L-0.29—-when we debit P/L what it is considered Impairment(loss allowance)?????
Cr Cash-2

thanks in advance