IFRS 9 fair value of interest-free concessional sovereign loans
IFRS 9 fair value of interest-free concessional sovereign loans
1. If an organisation is offering interest-free concessional sovereign loans to 3rd party countries as part of a developmental mandate how do you deal with the fair value requirement for disclosure of these loans. Could it be assumed that the present value of these loans represent their fair value as it is practically impossible and extremely difficult to establish a market on which similar instruments are being traded to benchmark fair value.
Re: IFRS 9 fair value of interest-free concessional sovereign loans
Sure, fair value does not have to be based on quoted prices in this case.
Have a look here:
https://ifrscommunity.com/knowledge-bas ... -hierarchy
But calculation of the appropriate discount rate will still be a challenge.
Have a look here:
https://ifrscommunity.com/knowledge-bas ... -hierarchy
But calculation of the appropriate discount rate will still be a challenge.