1993 SNA Update Information - AEG recommendations for issue:
Valuation of loans and deposits; Write-off and interest accrual on impaired loans
|Issue description in [English] | [French] | [Russian] | [Spanish]|
|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?|
|Number of AEG recommendations for selected issue:||1|
| Corresponding meeting||Date posted||Recommendation|
| July 2005||9/12/2005||An extension of the treatment of non-performance on other instruments was considered to be conceptually correct and can be shown as supplementary items.|
[See also recommendations for Non-performing loans]