Originally Posted by
Recaster
Just going over the accounts fy22 and a couple of questions for any accounting boffins:
1. Effective interest rate method IFRS 9, how does this work when applied to reverse mortgages? Repayment dates are conditional on secured properties being vacated which are uncertain. Only thing I can think of is they use mortality tables from insurance companies to come up with likely repayment dates. How is the estimated income spread over the term of the advance?
2. When is capitalised interest taxable? If interest is added by capitalising it to the loan is it assessable then or only when received by HGH? The rate of tax HGH is paying seems to indicate it's assessable when capitalised.
3. Collateral received on derivatives. A liability. Why is this on the balance sheet at all? How does it work?
Appreciate some help on these points.
Cheers