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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › 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.
That looks correct to me – assuming that your calculations are correct!