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Different issues when applying Amortized Cost valuation (IAS 39) # 1 Accrued Interests

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Hi Experts:

Due to Client requirements I need to:

  • apply Amortized Costs (IAS 39)
  • accrued interests with reset procedure

Amortization step and PMP assigned are

SCN 1.JPG

 

Deal

  • Bullet
  • Pay interest every 6 months
  • Have initial charges posted to the liability affecting its position
  • Interest need to be accrued at 31.12.xx and Liability need to be evaluated also to get the Amortized Cost value at this date.
  • Amortized cost needs to be calculated every time you pay interests

 

SCN 2.JPG

 

I have got same results in another deal created and here are th Cash Flow in Sap and the client

 

SCN 3.JPG

 

 

Issue:

When accruing interest TMP44 at 31.12.2010 I got the following

-----------------31.12.2010 ------------------

D: Interest                                        3.000

C: Interest to be paid (Liability) 3.000

-----------------------------------------------

When executing valuation TPM1

-----------------31.12.2010 ------------------

D: Interest                                        3.083

C: Loans (Liability) 3.083

-----------------------------------------------

So the amortized cost is wrong as the accrued interest is not taken into account

 

What Client needs to have is

When accruing interest TMP44 at 31.12.2010 I got the following

-----------------31.12.2010 ------------------

D: Interest                                        3.000

C: Interest to be paid (Liability) 3.000

-----------------------------------------------

When executing valuation TPM1

-----------------31.12.2010 ------------------

D: Interest                                        83

C: Loans (Liability)                          83

-----------------------------------------------

 

SCN 4.JPG

 

Posting

-----------------31.12.2011 ------------------

D: Interest                                        3.356,30

C: Loans (Liability) 3.356,30

-----------------------------------------------

When accruing interest TMP44 at 31.12.2011 I got the following

-----------------31.12.2010 ------------------

D: Interest                                        3.000

C: Interest to be paid (Liability) 3.000

--------------------------------------------- 

So again the P/L interests account is "duplicated"

 

 

To solve this issue I have followed solution of this thread http://scn.sap.com/thread/3294700

 

SCN 5.JPG

 

The Adq. Value in Position Cy is obviously taken the accrued interest into account and the Am.Adq Value also due to the effect set to the update types AD1002 and AD1003

 

Could I solve the accrued interest effect in the amortization and get the same result without affecting the position in this way.

Tanks in advance

Claudio


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