hi all, a company i know borrowed some money from nbfi based on the AR but not exactly factoring. just as a security. the interest is simple interest. interest and principal is same over a period of 2yrs. The lender wants the company to show the total liability including interest in our books.
Its a challenge as u all know interest we will charge to p&l on monthly basis and principal goes to BS as liability.
Do any of you find a way to show full liability?
CAclubindia
