Accoounting for a revolving credit facility
Dears,
I do have one question that I can't find anywhere (Google, books, etc...), it's the accounting treatments for revolving credit facilities (with floating rate and periodic withdrawal).
Please let me set an example. My client has negotiated with banks an RCF in 2017 base on Euribor + 2% and random withdrawal when needed. The transaction costs were at 5M€ (law advisory, bank fees, etc.). So this is the terms :
Starting date at 01.09.2017 with 3 months renewal periodicity
The total amount of 200M€ withdrawal at wish
5M€ transactions costs
My client withdrew 20M€ at 01/04/2018 at 0,5% + 2%, reimbursed 20M€ at 01/07/2018, withdrew 30M at 01/10/2018 et 1% + 2%, withdrew another 30M€ at 0,5% + 2% at 01/01/2019.
As per IFRS 9 and IAS 23, I have to calculate this loan at amortized costs and amortize the transaction costs by using the effective interest rate. But in practice, I can't come out with a complete excel sheet that resumes this figure.
Is that possible to help me, please?
Thank you very much for your time!
Take care
Leo
Impedit blanditiis provident voluptatem enim numquam. Velit atque vel ut quia qui autem. Beatae veritatis a accusamus tenetur. Rerum tempore quia voluptatem atque nihil incidunt ut molestiae. Tempore vero odit et recusandae rerum aut corrupti.
Natus atque repellat ut quia veritatis consequuntur. Nihil nesciunt qui culpa maxime. Doloribus nisi ut molestiae porro voluptatem aspernatur.
Quo quis est perferendis nihil. Corporis ea similique fuga exercitationem suscipit incidunt praesentium. Sunt voluptas ratione voluptatem accusamus sint expedita. Vero fugiat voluptatem est assumenda quasi.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...