Mirelane received funds from its customers: the sum of 2,420,000 can be claimed at the earliest in 2 years (first possible demand date). At the discount rate of 10% (case data), a valuation technique for this financial liability gives 2,150,000. Determine the discounted demand amount, then the fair value of the liability.
- Amount payable on the first date
- 2,420,000
- Years to the first demand date
- 2
- Discount rate
- 10 %
- Result of the valuation technique
- 2,150,000