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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Financial asset/liability opening value
Hello,
Struggling to understand when we use the actual cost value for financial asset or liability (e.g. 10m nominal value bonds) as a starting point in Y1 vs. when we use PV of future cash flows as starting point.
Use cost with 2 exceptions:
1. Issue convertible loans.
2. Lend money at zero interest
Otherwise you should not be discounting
IFRS 13 – record at FAIR VALUE (don’t know where you’ve got PF of CF)
Keep it simple!
🙂