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    Accounting Setup HLB

    Uploaded by

    palmkodok
    This document outlines journal entries for amortizing the cost and fee of loans using the effective interest rate method. It includes entries to initially record the cost and fee, amortize the amounts over the life of the loan, and reverse amounts initially recognized in the core banking system. It also discusses calculating the interest rate differential for employee loans and amortizing deferred expenses, as well as periodically calculating loan impairments.

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    Download as XLSX, PDF, TXT or read online from Scribd

    Accounting Setup HLB

    Uploaded by

    palmkodok
    12 views2 pages
    This document outlines journal entries for amortizing the cost and fee of loans using the effective interest rate method. It includes entries to initially record the cost and fee, amortize the amounts over the life of the loan, and reverse amounts initially recognized in the core banking system. It also discusses calculating the interest rate differential for employee loans and amortizing deferred expenses, as well as periodically calculating loan impairments.

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    This document outlines journal entries for amortizing the cost and fee of loans using the effective interest rate method. It includes entries to initially record the cost and fee, amortize the amounts over the life of the loan, and reverse amounts initially recognized in the core banking system. It also discusses calculating the interest rate differential for employee loans and amortizing deferred expenses, as well as periodically calculating loan impairments.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    12 views2 pages

    Accounting Setup HLB

    Uploaded by

    palmkodok
    This document outlines journal entries for amortizing the cost and fee of loans using the effective interest rate method. It includes entries to initially record the cost and fee, amortize the amounts over the life of the loan, and reverse amounts initially recognized in the core banking system. It also discusses calculating the interest rate differential for employee loans and amortizing deferred expenses, as well as periodically calculating loan impairments.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 2

    Description Cost LAR-Amortised Cost Other assets - temporary account (To record initial cost) Interest Income - Amortised

    Cost LAR - Amortised cost (Amortisation of cost using EIR) Other assets - temporary account Opex - Other cost reversals (Reverse handling fee which recognized in Corebanking System) Fee Other liabilities - Temporary account LAR - Amortised cost (To record initial fee) LAR - Amortised cost Interest Income - Amortised Cost (Amortisation of fee using EIR) Fee Income - Reversal Other liabilities - Temporary account (Reverse fee income which recognized in Corebanking System)

    Debit

    Credit

    Remarks

    xxx xxx

    xxx xxx

    Reverse handling fee (cost) which recognized in Corebanking System and posting the amortisation of cost using EIR which calculated by FRS Engine

    xxx xxx

    xxx xxx

    xxx xxx

    Reverse fee income which recognized using straight line method in Corebanking System and posting the amortisation of fee using EIR which calculated by FRS engine

    xxx xxx

    Loan with interest below market Employee Loan Deferred Expense Cash (To record market rate diff with employee/staff loan rate) Cash Employee Loan Interest Income (Interest income recognition) Employee Cost Deferred Expense (Amortization of deferred charges) Impairment Provision Expense Allowance for Provision (Provision for Impairment)

    xxx xxx xxx

    xxx xxx xxx

    FRS engine calculate the market rate diff and posting the amortisation using EIR

    xxx xxx

    xxx xxx

    FRS engine will calculate and booked the allowances every end of month.

    Outstanding +/+ -/-/+/+ Cost Fee Cost Amortization Fee Amortization

    xxx

    Loan - Amortized Cost

    Outstanding Cost Fee Period Contractual interest Initial recognition Outstanding +/+ -/-/+/+ Loan - Amortized Cost

    48,000,000 1,694,400 1,440,000 60 months 23.82%

    48,000,000 1,694,400 (1,440,000) 48,254,400

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