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?