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How do I account for loan origination costs while adhering to US GAAP?

Asked on Oct. 29, 2015

gaap accounting for loan origination costs

Answers

Sunil Thukral Controller/Technical Accounting Advisory/ SEC Reporting • January 3, 2012

Loan origination fees shall be recognized over the life of the related loan as an adjustment of yield. Certain direct loan origination costs shall be recognized over the life of the related loan as a reduction of the loan's yield.

U.S. GAAP reference:
You will need to apply the guidance contained in FAS 91, that is now included in codification as ASC 310.

Barrett Peterson Senior Manager, Actg Stnds & Analysis • February 4, 2012

Record in unamortized debt expense, and amortize over the life of the debt to financing costs, effectively reflecting as an adjustment of coupon interest in reflecting the cost of the debt over its life.

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