Question · The right to defer settlement: substance and existence at the end of the period

Cedar SA must repay a loan of EUR 6,000,000 in 2029, subject to maintaining an interest cover ratio of at least 2.5 at each 31 December (contractual condition of the case). At 31 December 2026, the ratio is 2.7. Management nevertheless forecasts a ratio of 2.1 at 31 December 2027 and is negotiating an amendment of the contract with the bank, which tests the ratio each year using the annual accounts. Write a short note concluding on the classification of the loan at 31 December 2026, distinguishing rule, case facts and professional judgement.