What Is the Appropriate Accounting Treatment for a Loan That

What is the appropriate accounting treatment for a loan that is the subject of a swap agreement?

A) Since the loan has been swapped with another, the two loans should be set-off in accordance with IAS 32.
B) The original loan should be removed from the statement of financial position and replaced by the other loan in the swap.
C) The original loan should be removed from the statement of financial position and replaced by the other loan in the swap.In the case of a foreign currency swap this treatment is also appropriate but the gain or loss on foreign currency translation should be deferred and amortised over the life of the loan.
D) The original loan, for which the entity has the primary obligation, should be retained in the statement of financial position.