If an asset is purchased from a supplier for which payment is to be made in 3 years on monthly instalments including cost + finance chg. Can we show assets and Capex loan in B/S and depreciation on assets can be charged.
Message from an IFRSLIST member
The loan and the asset will be shown in the balance sheet
You will have to account for the asset at the present value and book the interest paid every month to P&L and reducing the loan. Basically account for the transaction as if a finance lease.
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