Why would recording an interest-free loan at its face value result in the overstatement of net income

Question:

Why would recording an "interest-free" loan at its result in the overstatement of net income for the borrower?

Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...