Hello,
We repriced our variable rate debt mid-month. The debt had an accrued interest balance on the date of reset. to account for the non-substantial modification, a few questions:
1. For the original EIR in calculation of the immediate P&L recognition, do we use the original EIR at the commencement of the date, or the EIR immediately prior to the modification (difference because its floating rate debt).
2. Do we consider the accrued interest in the calculation of the EIR or in the immediate P&L recognition?
variable debt repricing
Re: variable debt repricing
1. immediately prior to the modification
2. yes, you should be looking at amortised cost of the loan
2. yes, you should be looking at amortised cost of the loan