What subjects does the loan include?
Loan is a special subject of financial enterprises such as banks. For financial enterprises, it is the main body of assets. Non-banks and other financial enterprises can set up this course. The accounting principles of loans and receivables are basically the same as those held to maturity.
Specifically:
1. Loans issued by financial enterprises according to current market conditions shall be initially confirmed according to the sum of the loan principal and related transaction costs. The receivable creditor's rights formed by the general enterprise's foreign sales of goods or provision of services should usually be based on the contract or agreement price receivable from the buyer as the initial confirmation amount.
2. The interest income recognized during the loan holding period is calculated at the actual interest rate. The real interest rate is determined when the loan is obtained, and will remain unchanged during the period of loans overdue or a short service life. If the difference between the actual interest rate and the contract interest rate is small, the interest income can also be calculated according to the contract interest rate.
3. When an enterprise recovers or disposes of loans and receivables, the difference between the price obtained and the book value of loans and receivables shall be included in the current profits and losses. Accounting entry setting account setting loan-principal loan-interest adjustment loan loss reserve loan-impaired.
Accounting treatment of loans
(1) Undamaged loans:
(1) Loans issued by enterprises: loans-principal loans: deposits and other loans-interest adjustment (the difference may be in the debit side)
(2) Debit on the balance sheet date: interest receivable (determined according to the contract principal and interest rate of the loan) Loan-interest adjustment (the difference may be in the debit) Loan: interest income (determined according to the amortized cost of the loan and the actual interest rate).
(3) Borrowing loans: absorbing deposits and other loans: loans-interest income of principal receivable.
(2) Loans with impairment:
(1) Impairment loan: simultaneous impairment loss of assets: loan: loan impairment loan: loan loss reserve loan: loan (principal and interest adjustment)
(2) Interest income loan: loan loss reserve (interest income calculated and determined according to the loan amortized cost and the actual interest rate) loan: interest income will also be registered in the off-balance sheet according to the contract principal and the contract interest rate; (3) Recovering loan: absorbing loan losses such as deposits. Loan: loan-impairment loss (difference) of impaired assets.
(3) Loans that are really irrecoverable:
Loan loss reserve loan: loan is damaged.
(4) Loans recovered after resale has been confirmed:
Loans-impaired loans: deposits and other loans: loan loss reserve loans: loans-impaired assets impairment losses (difference)