16/05/2018 · The accounting treatment of the loan is as follows: Initial recognition of the loan: Debit Financial Assets – Loans: CU 1 000; Credit Cash: CU 1 000; Transaction cost – loan origination fee: Debit Cash: CU 50; Credit Financial Assets – Loans: CU 50 Transaction cost – loan servicing fee received upfront: Debit Cash: CU 5017/09/2019 · Step Two: Applying IFRS 15 to fee revenue charged by a lender in a loan contract Fees charged by the lender other than those falling into the ‘origination fees’ and ‘commitment fees’ categories described in Step One above are NOT considered an integral part of the effective interest rate, and are therefore accounted for under IFRS 15 rather than IFRS loan origination costs and loan origination fees should be offset and only the net amount is deferred. The accounting for the net fees or costs depends on whether the loan is classified as held for investment or held for sale. The net deferred fees or costs associated with a loan held for sale are deferred until the related loan is sold ( What's in it for me? October 2016 Loan origination fees-fees associated with origination of a loan • Fees that are charged to the borrower as 'pre-paid' interest • Fees to compensate the lender for origination activities. • Other fees that relate directly to the loan origination process. Commitment fees•Loan origination fees •Underwriters fees •Legal fees •Other costs directly attributable to acquiring the loan •NOT general and administrative costs Accounting treatment of deferred financing fees ASC 835-30-45-3 indicates that debt issue costs should be capitalized in the balance sheet as non-current deferredLoan application fees IFRS 9 - CPDboxDoes IFRS 15 or IFRS 9 apply to fees charged to customers Loan application fees IFRS 9 - CPDboxLoan application fees IFRS 9 - CPDboxIFRS , 10 Loans acquired as part of a business combination are recognised in the acquirer’s consolidated financial statements on the date of acquisition, which is the date on which the acquirer obtains control of the acquiree. IFRS Planned but uncommitted future transactions, no matter how likely, are not
