Financial Liabilties – Loans

This topic has 1 reply, 2 voices, and was last updated 5 years ago by P2-D2.

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August 5, 2020 at 2:26 pm #579346
08hf
Member
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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?
August 8, 2020 at 8:27 am #579613
P2-D2
Keymaster
- Topics: 4
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Hi,

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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