| The SNA recommends that the values of loans to be recorded in the balance sheets of both creditors and debtors should be at nominal value, that is, at the amounts of principal that the debtors are conceptually obliged to pay the creditors when loans mature. However, it is common for the fair value of loans to differ from the nominal value for a number of reasons. At present the SNA recommends memorandum items recording fair values only for loans specifically characterized as non-performing. The possibility of a more extensive use of fair value in place of nominal value could be considered. |
