Mistral SA borrowed 7,500,000 from a bank. At 31 December 2026, two instalments are due within 12 months: 1,200,000 on 30 June 2027 and 1,300,000 on 31 December 2027. Case facts: at the closing date, Mistral has the right to defer settlement of all the later instalments for more than 12 months. Calculate the current portion, then the non-current portion of the borrowing.
- Total amount of the borrowing
- 7,500,000
- Instalment of 30 June 2027
- 1,200,000
- Instalment of 31 December 2027
- 1,300,000