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loan money to director

0 Votes
loan money to director

director borrow money from the company, but there is no specific repayment date but instead is repayable on demand. what is the accounting treatment for this? do we need to discount the future cash flow? do we still have to calculate using amortisation model?

May 8th 2015 AN ACCA USER 120 Points

2 Replies

+1 Vote

recognise liability and disclose. no need to discount as there is no specific maturity date

May 9th 2015 AN ACCA USER 320 Points
0 Votes
recognise as asset, you meant?
May 9th 2015 AN ACCA USER 140 Points