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Jun 24 2017 07:25pm
Let's say you have a note receivable:

Issued $1,000,000 initially
$50,000 cash payments to be received annually
$1,000,000 to be collected at maturity

But, at this year end there's a big credit risk change. You don't think you'll receive your $50,000 cash at all this year, and it's likely you'll scrounge back net $700,000 through collections.

IFRS: How do you manage the principal, and how do you manage the $50,000 in revenues?
ASPE: How do you manage this?

All I can think of is you have $50,000 revenue, $50,000 receivable increase... do you just do a direct write off, and a bad debt expense for the interest portion owed?
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