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No Present Value?
Raven-59294 - 08/19/2018, 12:36 pm

Shouldn't we get the present value of all future payments based on the original effective interest rate? What's the reason behind this answer?

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taxfax - 08/24/2018, 2:47 pm

No. The debtor recognizes gain in the amount of the difference between the book value of the obligation and the sum of all future payments (undiscounted).

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Raven-59294 - 08/25/2018, 4:28 am

I'm curious, is this IFRS or US GAAP? Because I'm pretty sure you have to discount the future payments using the original effective interest rate, or am I confusing this with something else?

taxfax - 09/4/2018, 8:08 pm

GAAP. See ASC 470-60-35-5

Raven-59294 - 09/5/2018, 5:20 pm

I see. We use IFRS. Thanks