Write the definition, recognition, measurement and derecognition of BORROWING COST

Q: What are the factors on which the cost of a loan depends?

A: Cost of loan are the expenses brought about by the borrower for taking the advance because of the…

Q: Define cost of borrowing.

A: Company needs to complete the goal set initially by the top level of management. These goals include…

Q: Define Debt-to-assets ratio

A: Debt-asset ratio is a measure that tells how much assets of the firm are financed with the debt.…

Q: Explain how to account for the impairment of an available-for-sale debt investment.

A: Debt Investment:   A debt investment involves loaning out the money to an institution in exchange…

Q: Define the term After-tax cost of debt?

A: Cost of capital is the overall cost of financing the funds from all sources of finance. The cost of…

Q: Define mezzanine loan?

A: Mezzanine funding: Mezzanine funding is a type of funding that has together the characteristics of…

Q: a)  Explain the difference between: Capital expenditure and revenue expenditure, giving an example…

A: Capital Expenditure: It is a expenditure made by company to acquire or renovate a property, plant or…

Q: A finance charge includes which elements?

A: Finance charge is a very common occurrence associated with the use of credit. For example users of…

Q: Title Explain how a borrowing cost could arise as part of the measurement of a provision. Illustrate…

A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…

Q: Define secured basis loan

A: Introduction: Loan is the amount that investors borrow for a given period of time. Farmers pay a set…

Q: finance charge is calculated

A: Finance Charge is the charge on the balance amount after the billing date. In short, it is the…

Q: Define debtor-in-possession (DIP) financing

A: Introduction: A debtor in possession (DIP) is an individual or company that has filed for chapter 11…

Q: Define the term pure borrowing?

A: The term borrowing is defined as the amount received from another party with the agreement that the…

Q: perlod of a loan or investment

A: Compounding period and period of loan are interrelated to each other.

Q: Discuss the steps of loan structuring.

A: Loan structuring is defined as the components, which used to make the loan, like term loan, rate of…

Q: Define Monetary/non-monetary method

A: Monetary and Non-Monetary Method Monetary Assets/Liabilities - Assets/Liabilities whose value…

Q: Define Interest cost.

A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…

Q: lending

A: The term net lending is defined as an economic measure which measures as to whether the government…

Q: Explain Loan Amortization Patterns?

A: A loan amortization pattern, as made by an amortization calculator, maybe a table enumerating each…

Q: What is meant by a term-loan agreement?

A: A Loan Agreement, also known as a term loan, demand loan, or loan contract. It basically is a legal…

Q: Which are the fundamental relationships to know in any loan refinancing decision include at least…

A: Loan refinancing decision involves replacement of an existing debt with a new debt. The intention of…

Q: re direct and indirect forms of financing.

A: Direct financing is no intermediaries involved and indirect financing is not direct but through…

Q: Define Debt Issue Costs.

A: Bonds: Bonds are a kind of interest bearing notes payable, usually issued by companies, universities…

Q: Explain the classification issues of short-term debt expected to be refinanced.

A: Short term debt: It refers to the financial obligation for the firm that needs to be paid within one…

Q: The capitalization rate used to determine the capitalizable borrowing cost should be disclosed.…

A: It is pertinent to note that as per IAS 23 borrowing costs incurred for acquisition, construction of…

Q: Define amortized loan

A: Amortized loan is a loan in which total loan will be paid off by same periodic payments. These…

Q: Explain an example how to record the purchase of debt investment.

A: When a debt investment is purchased , it is recorded as a asset in the books of the company as it is…

Q: What is Secured Borrowing?

A:

Q: Define embedded rate (for debt)

A: An embedded option is the component of financial security the gives the issuer of the debt option or…

Q: What are debt issue costs and how should they be reported?

A:

Q: Describe the concept of non interest bearing on loan.

A: A non-interest bearing loan is a debt for which there is no documented requirement for the borrower…

Q: Describe the key characteristics of a debt investment and demonstrate how to account for a purchase…

A: Debt Instrument:   A debt instrument is a financial instrument that enables the issuer of the…

Q: Define required rate of return on debt

A: The required rate of return: This rate of return equates to the minimum return an investor would…

Q: Define debt service requirements

A: Debt service requirement is very much essential for a company if it wants to maintain a good credit…

Q: Explain the term Loan Repayment Schedule?

A: Loan is a sum of money borrowed by an individual/organization from a bank or lender that has to be…

Q: What is a loan amortization schedule, and what are some ways these schedules are used?

A: Loan is an agreement between lender and borrower where lender provide funds to borrower which repaid…

Q: Describe the method of determining the Cost of Debt?

A: The cost of debt is the profit a business offers its debtors and creditors. These capital suppliers…

Q: What is the meaning of Loan assumably?

A: Introduction: Assumable loan is nothing but a mortgage which can be passed to another party by the…

Q: Explain in words the difference between total debt and total liabilities.

A: Liabilities: The claims creditors have over assets or resources of a company are referred to as…

Q: in the 5 c's of stracturing a loan approval, what fundamental piece do you think it ignore or fall…

A: Long-term loan:   It's a debt instrument that a company uses to raise money. The collateral is…

Mortgages

A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.

Mortgage

The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.