Upon the initial recognition, all bank loans are recognised at fair value less the costs of obtaining such a loan or credit.
After the initial recognition, interest bearing loans are measured at amortised cost with the application of effective interest rate. When determining the amortised cost, the costs of obtaining a loan as well as discounts or premiums attained during the settlement of a liability are taken into consideration.
Gains and losses are recognised in profit or loss upon derecognition of a given liability from the balance sheet, and also as a result of settlement using the effective interest rate.
