Accounting for Interest during Moratorium


Joined
Apr 3, 2019
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From the FI perspective, how can the accrued interest on loans be accounted for during a moratorium in these cases.

1. Interest rate remains same and is compounded
2. Interest rate is reduced and is compounded
3. Interest rate is reduced and is not compounded (simple interest during moratorium period)
4. If the customer had already started servicing the EMI

Suppose it is a $1,000,000 loan at 8% over a 5 year period.
 
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Joined
Apr 25, 2017
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India
Interest needs to be debited and Vendor/Bank needs to be credited with the amount of interest.
 

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