Borrower plc raises a loan of N$100 000 during 20X1. The loan is to be repaid in two instalments, N$40 000 during 20X5 and N$60 000 during 20X6. The reporting date of the company is 31 December.
An agreement is signed on 5 January 20X5 to delay the repayment of the N$40 000 instalment to 20X6. The financial statements are published on 31 January 20X5.
The disclosure required in the financial statements at 31 December 20X4 is as follows:
Choose one correct option only)

Question

Borrower plc raises a loan of N$100 000 during 20X1. The loan is to be repaid in two instalments, N$40 000 during 20X5 and N$60 000 during 20X6. The reporting date of the company is 31 December.

An agreement is signed on 5 January 20X5 to delay the repayment of the N$40 000 instalment to 20X6. The financial statements are published on 31 January 20X5.

The disclosure required in the financial statements at 31 December 20X4 is as follows:

Choose one correct option only)

Answer

Non-current liability of N$100 000 and note disclosure about the refinancing agreement.

Answer

Non-current liability of N$100 000

Answer

Current liability of N$40,000 and non-current liability of N$100 000

Answer

Current liability of N$40 000 and non-current liability of N$60 000 and note disclosure about the refinancing agreement.

Answer

Current liability of N$100 000

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Borrower plc raises a loan of N$100 000 during 20X1. The loan is to be repaid in...

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