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Processing fees
Dear ExpertMy question is I paid loan processing fees for loan. Can adjust that fees in monthly instalments.
Replies (2)
Under US GAPP -The loan origination fee can be amortised over the life of the the loan to which the fee is relate.
Under AS- If the loan is taken for Capital Project then loan processing fees should be capitalized as per AS-16 Borrowing Cost.
As per para 6 of AS-16, Borrowing Cost that are directly attributable to the acqisition, construction and production of a qualifying assets should be capitalized as part of the cost of the assets. The amount of borrowing costs eligible for capitalization should be deteremined in accordance with this statement. Other borrowing costs should be recognised as an expense in the period in which they are incurrent.
Dear Nishikant.,
As per above rules noted by Mr. Amitav.,
Your loan processing fee is accounted in Your expenditure account. It's not your installments...
As per above rules noted by Mr. Amitav.,
Your loan processing fee is accounted in Your expenditure account. It's not your installments...
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