Financial liability

Fair value through p/l on 1 jan 20x1 Mcgrath issued financial liability at nominal value of $10m.Interest paid at a rate of 5%. The financial liability is the short term.31december 20x1 it market rate increased to 10%. the liability is repayable on 31 december 20x3 the liability at 31 dec 20x1 date------------B/F----------interest paid-----C/f 31/12/x1------10000----------500-------------10500 date------------cash flow---------------D.F------------PV 31/12/x2---------500------------------1/1.1------------455 31/x2/x3--------(10000+500)-------1/1.1^2--------8678 ===================================9133 the fv of financial liability is 9.13 dr FL---(10000-9133)-867 cr p/l--867 my question here is that since the C/F on 31 december 20x1 is 10500 why we deduct 9133 from 10000 not 10500?when we debit p/l is it again impairment or loss allowance?