Hi,
When calculating the finance charge on lets say a loan, why do we calculate it the way we do. Why could we not instead just show the amount we pay out from the bank and then the remainder of the loan balance in the sfp?
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Financial Liabilties - Loans
6y ago#1Hi,
Have you watched the videos on financial instruments? These will explain how we are accounting for the substance of the loan and not its legal form.
Thanks
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