TIOPA10/S456

A company with a creditor loan relationship (ie. a loan receivable) will have several potential accounting treatments available when it includes the asset on its balance sheet, depending on the relevant accounting standard. It could measure it at amortised cost, for example, but could also be required to account for it at fair value through profit or loss.

Accounting at fair value will introduce an element of volatility into the company's accounts.

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