A loan is made to a company of $20,000, which is equal to 10,000 at the date of the loan during year 1 The loan is legally denominated in dollars At the end of year 1, the loan is translated as 9,500 and at the end of year 2 as 10,500 During year 3, the loan is repaid, the proceeds being converted to 10,600 The company keeps accounts in euros 

a Show the accounting entries for each year, explaining your workings 

b State how, under IFRS, you would deal with the gains or losses on exchange for each year, at that time Justify your answer