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Hello Mr Chris,
I would like to ask is there any other situation where we have to calculate the present value of the future cash flows other than the case of split accounting where there are two elements the loan notes and equity.
So other than this situation do we have to take the present value of future cash flows with regard to the financial instruments,
Thanks for help.
There could be other situations possibly with the issue of debt but you are normally given the fair value as opposed to being asked to calculate the present value, which would be the fair value of the instrument.