Prepare a report on the accounting implications of the issues. When the accounting for an individual transaction has not been specified, you should indicate how it should be accounted for and the impact that the accounting would have had on the key metric(s).

Please base on the CPA Guidlines.

SFC has $43 million invested in Government of Canada treasury bills. During the past year, $30 million of these treasury bills were set aside to cover interest and principal obligations on the companys syndicated loan of US$25 million. At the time the loan agreement was signed, SFC entered into a forward contract to buy U.S. dollars for the same amounts as the obligations under the syndicated loan and for the same dates as the obligations come due. SFC considers that, in substance, the debt has been settled, and as a result, both the treasury bills and the syndicated loan have been removed from the companys balance sheet.