Conversion of short term loan to long term

Conversion date and true and fair

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My client has a short term loan due within one year to fund a new building, which will be converted to a mortgage after the work has been signed off by the contractor. At the year end the work was not quite complete and the loan was not converted until shortly after the year end into a long term mortgage. My client does not wish to show at their year end all of the loan in current liabilities, is there any way we could show this as long term by using the true and fair override? or are we left with it all in short term with a post balance sheet event note instead

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By johngroganjga
11th Jul 2018 15:11

Looks like an adjusting PBSE to me.

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Replying to johngroganjga:
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By Dizzyheights
11th Jul 2018 15:29

Thanks but the legal form of the loan is short term at the balance sheet date. Does this not restrict any PBSE adjustments?

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