As per question spot rate of EUR USD has fallen to $1 at end of the year.
As per solution they have depriciated only the interest amount of loan which is 7% of loan amount.
Don’t we need to depriciate entire loan amount of 16 mn euro too as Sun bank will receive the depriciated value of loan amount in terms of USD at the end of the year
these questions cater to the old author, please once check the audio message of sanjay sir in frm p1 telegram group, your concern will be solved.