If draw down is probable then the asset remains recognised at the full amount until draw down because it represents a fee paid to draw down a fixed term loan and the whole fee represents an integral part of the effective interest rate of the loan if measured at amortised cost. If the loan commitment allows the borrower to draw down a fixed amount over a fixed period, but when drawn down the loan has the same fixed term regardless of when the loan is drawn, the accounting for the asset depends on whether draw down is probable. This should make the calculation of the loan a lot easier Leo? ![]() Which reflects what you said pub_acco and doesn't really change whether the borrower intends to draw down or not. The fee is not specific to the amount borrowed and therefore it is simply amortised over the life of the facility. The short answer is the general view is that when the fee paid by the borrower is more in the nature of a facility fee such that the amounts and timing of the draw down and the repayment of the borrowing are at the discretion of the borrower (an overdraft fee), it is not appropriate to recognise the fee as a transaction cost when amounts are drawn down. But in practice, I can't come out with a complete excel sheet that resumes this figure. Īs per IFRS 9 and IAS 23, I have to calculate this loan at amortized costs and amortize the transaction costs by using the effective interest rate. My client withdrew 20M€ at at 0,5% + 2%, reimbursed 20M€ at, withdrew 30M at et 1% + 2%, withdrew another 30M€ at 0,5% + 2% at. The total amount of 200M€ withdrawal at wish ![]() Starting date at with 3 months renewal periodicity The transaction costs were at 5M€ (law advisory, bank fees, etc.). My client has negotiated with banks an RCF in 2017 base on Euribor + 2% and random withdrawal when needed. I do have one question that I can't find anywhere (Google, books, etc.), it's the accounting treatments for revolving credit facilities (with floating rate and periodic withdrawal). Thank you for creating this wonderful forum, every topic are very interesting and important for our professional career!
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