FRS 102 Loan Accounting (base rate + interest)
Cocobean
Registered Posts: 2
Hi, if anyone can help I'd be very grateful and apologies in advance if this is a daft questions.
I am a little confused as to how I should treat a loan. The company I work for has received a loan which is currently recognised in the accounts at the value received - repayments + interest charged to date. The loan interest is charged at base rate + 14% does this make this not a basic financial instrument? How should I determine the value on the balance sheet at the year end and how should I split this into long term and short term amounts owing?
Thank you in advance
Lucy
I am a little confused as to how I should treat a loan. The company I work for has received a loan which is currently recognised in the accounts at the value received - repayments + interest charged to date. The loan interest is charged at base rate + 14% does this make this not a basic financial instrument? How should I determine the value on the balance sheet at the year end and how should I split this into long term and short term amounts owing?
Thank you in advance
Lucy
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