Question

How should fees and commissions earned by banks through debt renegotiations or rescheduling be recognized?

Q: How should fees and commissions earned by banks through debt renegotiations or rescheduling be recog

AccordingtothegiveninformationfeesandcommissionsearnedbybanksasaresultofdebtrenegotiationsorreschedulingshouldberecognizedonanaccrualbasisovertheperiodoftimecoveredbytherenegotiatedorrescheduledextensionofcreditThismeansthatthefeesandcommissionsshouldberecognizedgraduallyoverthedurationoftherenegotiationorreschedulingperiodreflectingtheactualearningofthebankastheprocessunfolds

A They should be recognized immediately upon agreement.

B They should be recognized as per the terms of the renegotiation or rescheduling.

C They should not be recognized as income.

D They should be recognized on an accrual basis over the period covered by the renegotiation or rescheduling.

E They should be recognized as a lump sum at the end of the renegotiation or rescheduling period.

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Relevant for Exams:

Bank of India Credit Officer

Union Bank of India Credit Officer

PNB SO Credit Officer Scale 1

Question

How should fees and commissions earned by banks through debt renegotiations or rescheduling be recognized?

Solution

Relevant for Exams:

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