Pavé SA holds a loan whose gross carrying amount is 1,000,000. The contractual cash flows are renegotiated without the loan being derecognised. The gross carrying amount recalculated to reflect the modified cash flows is 920,000 (case datum). Calculate the modification loss to be recognised in profit or loss (give it as a positive amount).
- Gross carrying amount before modification
- 1,000,000
- Recalculated gross carrying amount
- 920,000