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For example. My Company have been giving loans to another company (which is a related-party - common director and shareholder). However, for 3 years, no repayment was made by that related-company. Reason for the loans is because the management foresees the related-company to grow, however they do not want to classify it as an investment as no shares were being acquired by my current Company.
Therefore, based on IFRS, should I provide impairment loss for the loans or should I provide doubtful for the loans?
Therefore, based on IFRS, should I provide impairment loss for the loans or should I provide doubtful for the loans?