The valuation of loan positions and deposits are subject to alternative perspectives.
Nominal or face value valuation might be misleading because of the risk of default
and/or changes in interest rates. This difference becomes apparent when the loans are
traded. However, these valuation issues are equally applicable to non-traded loans.
Business accounting standards are considering using the concept of “fair value” for the
valuation of loans as if they were traded. Should the SNA introduce a valuation other
than nominal for deposits and loans?
Corresponding papers (Click on icon to see document in either pdf or word format)
AEG papers:
Posted on 2005-08-15
The treatment of nonperforming loans
AEG summaries:
Posted on 2005-09-30
Non-performing loans
Statistics
Number of AEG recommendations:
1
Number of country comments:
4
Number of expert comments:
none
Meetings
The subissue was discussed at the following meetings: