Aron granted interest free loan to its employees on 1 june 2008 of 10 million .the loan vl be paid back on 31 may 2010 as a single payment by the employes. The market rate of two year is 6% .The company unsure how to account for but wishes to classify at amortized cost inder ifrs 9.
i dnt understand hw he could recognsed at amortized cost when it doesnot fulfill the the model .It has to be principal and interest .
ACCA exam results — Are you ready?Chat about it >>