[RKT]

I’m having trouble understanding the valuation of notes payable, especially when it comes to the interest rate being reasonably low or not stated (imputing interest) vs. when it’s not. Can someone please explain it? Thank you!

[ali.ikram]

From my understanding, when a Notes Payable is shorter than 1 year you use the FMV vs if it is longer than 1 year, you use the Present Value using Time Value of Money with the (effective,market,yield) interest rate.

AUD - NINJA in Training
BEC - NINJA in Training
FAR - NINJA in Training
REG - NINJA in Training

FAR - DEC 2019

AUD - NINJA IN PROGRESS

REG - NINJA IN PROGRESS

BEC - NINJA IN PROGRESS

 

[deon]

As far as imputed interest goes, the only time a non stated interest rate matters is if the note payable is in exchange for a good or service. Then it goes by the implied interest rate that’s always given. Hope that helps.

AUD - 75
BEC - 79
FAR - 77
REG - 79

 

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[Author]

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