calculated using effective interest method

Accordingly, the guidance in this respect is very clear under Ind-AS that loans advanced at zero or concessional rates of interest are to be measured at fair value which is to be calculated using effective interest method.Accordingly, the interest income is recognised in the books of accounts as per the market rate and not the interest rate as per the concessional terms. However, the principal for the purpose of calculation of interest shall be the amortised cost and not the principal amount outstanding.

Comments

Post a Comment

Popular posts from this blog

Remeasurements of defined benefit plans Remeasurements

Image
Remeasurements of defined benefit plans Remeasurements of the net defined benefit liability (asset) comprise (Para 127 of Ind AS 19 ‘Employee Benefits’): (a) actuarial gains and losses; (b) the return on plan assets, excluding amounts included in net interest on the net defined benefit liability (asset); and (c) any change in the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability (asset).
Read more

Texas A&M — Mays Business School

Image
Texas A&M — Mays Business School Mays Business School took its name in 1996 — 35 years after its founding — when Lowry Mays, founder and former CEO of Clear Channel Communications, gave a $15 million endowment to the school. At just $57,316 in tuition and fees for the 16-month full-time MBA program, it's a sound investment for students, who on average make nearly twice that figure after graduating. Projects like the MBA Venture Challenge, in which students evaluate startup firms' commercial viability, ready them for careers in tech. Forty percent of grads who accepted jobs in 2015 went into the technology industry.
Read more

Items that will not be re-classified to profit or loss

Image
Items that will not be re-classified to profit or loss.” Book Profit for the purpose of Section 115JB is “Net Profit before Other Comprehensive Income”. In order to tax items of Comprehensive Income that will not be routed through Profit And loss, book profit of the previous year shall be increased/decreased by all amounts credited/debited to other comprehensive income in the statement of profit and loss. For particular liabilities designated as at fair value through profit or loss, the amount of the change in fair value that is attributable to changes in the liability’s credit risk.
Read more