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FAS 91: Accounting for Nonrefundable Fees and Costs Associated with Originating or Acquiring Loans and Initial Direct Costs of Leases | DART – Deloitte Accounting Research Tool.
This Statement establishes the accounting for nonrefundable fees and costs associated with lending, committing to lend, or purchasing a loan or group of loans. This project was undertaken in response to an AICPA Issues Paper that indicated a diversity in practice in the accounting for nonrefundable fees and costs associated with lending activities.
However, FASB Statement no. 91 also applies to investors in loans or debt securities purchased at a premium or discount. For example, if a company purchases a bond at a premium (or discount), the premium (or discount) is amortized over the life of the bond on the company’s
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What to know first: Debt consolidation loans allow borrowers to combine high-interest debt into a new loan, ideally with a lower interest rate. These loans typically
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