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How will loans and benefits appear in the annual reports?

 your company got a loan worth  One Million SAR, The interest on the loan amount is twenty Thousand SAR, And it will be repaying the loan over5 years in equal installments.

This loan and benefits,  how will appear in the annual reports?

Loan Origination Company Liaison Interest Rate Derivatives Interest Rate Risk Management Progress Reports
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Question added by Mohammad AlKhateeb , Finance Manager , Rukam Industrial Co.
Date Posted: 2015/12/21
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Ahmed Elaraby
by Ahmed Elaraby , General Manager , EgySau Co. LTD

It will appear as account payable but per year. i.e 200k will be payable in addition to its interest 20k every year until you finish the loan. In the mean time, the one million will appear as cash in. This is why the loans and interests is one idea to beautify  the financial appearance of the companies and if the companies did not invest those loans, it will be useless burden since the interest.

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