Loan transfers is the collective term used to describe various methods by which banks and other lenders seek to transfer an advance to a different lender. Such transactions often involve a gain or loss because of movements in interest rates since the original loan was taken out, so they can have a profit and loss account dimension as well as giving rise to questions of balance sheet recognition and disclosure.
KeywordsInterest Rate Cash Flow Balance Sheet Market Rate Application Note
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- 1.ED 49, para. E.11.Google Scholar
- 2.Ibid., para. E.13.Google Scholar
- 3.Ibid., para. E.15.Google Scholar
- 4.As discussed in para. 59 of FRED 4, where the proportionate share of benefits and risks of part of an asset has been transferred, that part can be treated as a separate asset.Google Scholar
- 5.FRED 4, Application Note E, para. E15.Google Scholar
- 6.Ibid., para. E21.Google Scholar
- 7.Ibid., para. E22.Google Scholar
- 8.Ibid., para. E23.Google Scholar