Based on the given information: the total loans classifies under Stage 1 is A. P 1,400,000 B. P 1,550,000 C. P 1,625,000 D. P 1,670,000 WITH SOLUTION PO PLS.
The following information pertains to Mane Lending Corporation’s loan portfolio as at December 31, 2021:
A. Mane Lending Corporation considers all loans over 90 days past due to be credit-impaired based on historical experience with recovering the associated debt.
B. The aging of Mane Lending Corporation’s loan on December 31, 2021 is a follows:
|
Current |
P 1,400,000 |
|
More than 30 days past due |
75,000 |
|
More than 60 days past due |
100,000 |
|
More than 90 days past due |
125,000 |
|
Total |
P 1,700,000 |
C. Mane Lending Corporation monitors certain loans more closely on an individual basis given their significance and unique characteristics. These loans are not included in the P1,700,000 loan portfolio. The following information is available without undue cost or effort on an individual loan basis:
|
LOAN |
AMOUNT |
PAST DUE STATUS |
PV OF EXPECTED FUTURE CASH FLOWS |
|
1 |
P 200,000 |
90 days |
P 180,000 |
|
2 |
150,000 |
Current |
Not calculated |
|
3 |
50,000 |
60 days |
37,000 |
Other information :
Loan 1 – The borrower has filed bankruptcy
Loan 2 - None
Loan 3 - The borrower recently lost his job due to an economic recession and was granted a concession to skip payments
ADDITIONAL INFORMATION:
Taking into account historical information, current conditions and forward looking information, including actual loss experience and recoveries from the sale of collateral is as follows:
- Probability of default in the next 12 months 2%
- Lifetime probability of default
Credit-impaired loans 100%
Not credit-impaired loans 5%
- Loss given default on all loans 25%
Based on the given information: the total loans classifies under Stage 1 is
A. P 1,400,000
B. P 1,550,000
C. P 1,625,000
D. P 1,670,000
WITH SOLUTION PO PLS.
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