Financial Asset – Supplier Loan

Hi,

On my SOFP (reporting date 31 Dec X5) the financial asset balance relates to $15m that was loaned to a supplier on 1st Jan X5 which is interest free and due to be repaid on 31 Dec X6. The supplier can usually borrow at a rate of 15%.

Do I do the following

DR Loan 1.96m
CR P&L – interest 1.96m

Workings:
FV of loan at 1st Jan X5 (15m ÷ 1.15sqd) 11.34m
11.34m x 1.15 =13.04m
15m – 13.04m = 1.96 interest

I have followed another similar example to get this,

Thank you.