MFRS

Loan commitments

This Hot Topic discusses about accounting for loan commitments that are outside the scope of MFRS 139 and provides guidance specifically on:

  • are loan commitments outside the scope of MFRS 139 for both the borrower and the lender?
  • are both option-type and forward-type loan commitments outside the scope of MFRS 139?
  • how should loan commitments that are outside the scope of MFRS 139 be accounted for?
  • what is the accounting treatment of changes in the fair value of a loan during the commitment period?