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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Should we present long-term loan in the balance sheet at discounted value?????
Hello sir.
Could you please clarify, should we present long-term loan liability (e.g loan received from a bank which is payable in several years) at discounted value in the balance sheet? If yes how should we discount it? Using which cash flows(only principal amount or there are also interest payable implications)? And which IFRS accounting standards are applicable to that issue?
Hi,
It would be classified as a financial liability as there is an obligation to pay cash and measures at amortised cost under IFRS 9.
Thanks