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  3. 2. accounting for loan assets at amortised cost fi

2. Accounting for loan assets at amortised cost Finale Ltd is a manufacturing company that...

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2. Accounting for loan assets at amortised cost Finale Ltd is a manufacturing company that makes loans to other parties from time to time. The loan assets are classied by Finale Ltd as subsequently measured at amortised cost. On 1 July 2022, Finale Ltd made the following loan to American Ltd: A 3-year loan of $1 million to American Ltd at an interest rate of 10% pa. with interest due only on settlement at 30 June 2025. Effective interest rate is 9.1393%. Required Prepare the entries of Finale Ltd to account for the loan from initial recognition on 1 July 2022 to derecognition on 30 June 2025, assuming loans are fully paid on maturity. (L014)

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