If a company issues loan notes, do they treat them as an asset or liability?
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FRIssuing Loan Notes - URGENT!!!
14y ago#1I think the clue is in the word "issue". If it were an asset, the question would be "where a company invests in loan notes ....."
Where a company "issues" a loan note, they are doing so ( giving a written acknowledgement of a debt ) in recognition of the fact that they now owe money.
Thus, it's a liability
Where a company "issues" a loan note, they are doing so ( giving a written acknowledgement of a debt ) in recognition of the fact that they now owe money.
Thus, it's a liability
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