Hello sir,
When we issue debt Dr Cash Cr Fin Liab @proceeds.
When we buy debt Dr Inv Cr Cash/bank @cost..
So don't we need to find the financial liability by p.v of future cash flows?
Or is this method only relevant for Lease liab and convertible debts?
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Financial Liab.(9)
4y ago#1Perfect summary. Well done. :)
Only funnies:
1. Leases
2. Convertibles
3. (one more!) If you lend money interest free - e.g. to employees - need to discount to PV using whatever interest rate they give you (somewhere) in the question.
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