there is a long term liability but we don't know when it will be paid. then how the same will be discounted?
Ravi Rajak (Student CA Final ) (97 Points)
01 January 2018there is a long term liability but we don't know when it will be paid. then how the same will be discounted?
CA. Mayur
(Service)
(147 Points)
Replied 19 August 2018
Fair value of financial liability is based on estimated cash flow, so entity need to estimate the repayment in case if contract is silent on repayment