04-08-2008, 07:29 PM
Dear,
I find no point in disagreeing to you. However, in practice, wherever such terms are not finalized, companies don't calculate the fair values and don't make the adjustments required under IAS 39 to state such financial liabilities on fair value initially.
Now making such assessment of repayment date (without having a contract in place to repay) would be subjective and will require management representations and agreeing of auditors on such estimate of the management.
We "normally" don't see this in practice.
Regards,
KAMRAN.
