Applying IFRS
interest free loan to its parent company. The loan is due to be repaid in five years’ time at its par value of CU1,000,000. A market related interest rate for a loan with similar terms would have been 6% p.a. on initial recognition. Choco intends to hold the loan until its maturity. Neither Choco nor the parent has an option to call or prepay the loan. Trade receivables Payment in respect of sales is due within 30 days … ................
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