Loan to employees at zero interest

Hhasanali9512y ago

As the co. Will not be collecting any interest but only capital repayments,does it still qualify for recognitionbat amortised cost? Thanks

MikeLittleTutor12y ago#1

Hmm, tricky! If we discount to get the present value of the interest free loan to the employee, then the unrolling of the discount would be classed as a finance cost due to the passage of time. I imagine (not 100% sure) that, yes, it would be held at present value and unrolled

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