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Should we present long-term loan in the balance sheet at discounted value?????

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Should we present long-term loan in the balance sheet at discounted value?????

  • This topic has 1 reply, 2 voices, and was last updated 9 years ago by AvatarP2-D2.
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  • October 7, 2016 at 8:55 am #342610
    Avatarpetrochina
    Member
    • Topics: 5
    • Replies: 79
    • ☆☆

    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?

    October 8, 2016 at 10:03 pm #342755
    AvatarP2-D2
    Keymaster
    • Topics: 4
    • Replies: 7235
    • ☆☆☆☆☆

    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

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