16/05/2018 · Loan Origination Fee of 1 % is amortized over the loan period. Currently we are using straight-line as an alternative for effective interest method, and; Loan application fee is 2%.17/09/2019 · 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 ;· It is also important to note that loan commitments are generally out of scope of IFRS 9. Amortisation of fees, premiums, discounts and similar items Fees, premiums, discounts and similar items that are included in the calculation of the EIR are amortised over the expected life of the financial instrument, unless they relate to a shorter 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 feesLoan Origination Fees: to Recognize Immediately or • IFRS Forum and IFRS Knowledge BaseLoan application fees IFRS 9 - CPDboxDoes IFRS 15 or IFRS 9 apply to fees charged to customers

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